<SEC-DOCUMENT>0001062993-15-003758.txt : 20150708
<SEC-HEADER>0001062993-15-003758.hdr.sgml : 20150708
<ACCEPTANCE-DATETIME>20150708141304
ACCESSION NUMBER:		0001062993-15-003758
CONFORMED SUBMISSION TYPE:	424B3
PUBLIC DOCUMENT COUNT:		3
FILED AS OF DATE:		20150708
DATE AS OF CHANGE:		20150708

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:	333-191682
		FILM NUMBER:		15978759

	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>
<HTML>
<HEAD>
   <TITLE>Anavex Life Sciences Corp.: Form 424B3 - Filed by newsfilecorp.com</TITLE>
</HEAD>
<BODY style="font-size:10pt;">
<HR noshade align="center" width=100% size=3 color="black">
<P align=right>Filed pursuant to Rule 424(b)(3)<br>
Registration No. 333-191682</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><FONT color=#ff0000><B>PROSPECTUS </B></FONT></TD>
    <TD align=center width="33%"><FONT color=#ff0000>&nbsp; </FONT></TD>
    <TD align=center width="33%"><FONT color=#ff0000>&nbsp;
  </FONT></TD></TR></TABLE>
<P align=center><IMG
src="posamx4x1.jpg"
border=0 width="343" height="63"> </P>
<P align=center><B>9,975,267 Shares of Common Stock </B></P>
<P align=justify>This prospectus relates to the offer and sale of up to
9,975,267 shares of the common stock, par value $0.001, of Anavex Life Sciences
Corp., a Nevada corporation, by Lincoln Park Capital Fund, LLC, or Lincoln Park,
or the selling stockholder, from time to time. </P>
<P align=justify>The shares of common stock being offered by the selling
stockholder have been or may be issued pursuant to the purchase agreement dated
July 5, 2013 that we entered into with Lincoln Park, which we refer to in this
prospectus as the Purchase Agreement. Please refer to the section of this
prospectus entitled &#147;The Lincoln Park Transaction&#148; for a description of the
Purchase Agreement and the section entitled &#147;Selling Stockholder&#148; for additional
information regarding Lincoln Park. The prices at which Lincoln Park may sell
the shares will be determined by the prevailing market price for the shares or
in negotiated transactions. We are not selling any securities under this
prospectus and will not receive any of the proceeds from the sale of shares by
the selling stockholder. </P>
<P align=justify>The selling stockholder 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
stockholder may sell the shares of common stock being registered pursuant to
this prospectus. The selling stockholder is an &#147;underwriter&#148; within the meaning
of Section 2(a)(11) of the Securities Act of 1933, as amended.</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 - OTCQX
under the symbol &#147;AVXL.&#148; On June 3, 2015, the last reported sale price of our
common stock was $0.40 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>ii </P>
<P align=center><font color="#FF0000">Dated July 8, 2015</font></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 noWrap align=left bgColor=#eeeeee><A
      href="#page_6">PROSPECTUS
      SUMMARY </A></TD>
    <TD noWrap align=right width="5%" bgColor=#eeeeee ><A
      href="#page_6">1
      </A></TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left><A
      href="#page_9">THE
      OFFERING </A></TD>
    <TD noWrap align=right width="5%" ><A
      href="#page_9">4
      </A></TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left bgColor=#eeeeee><A
      href="#page_10">SECURITIES
      OFFERED </A></TD>
    <TD noWrap align=right width="5%" bgColor=#eeeeee ><A
      href="#page_10">5
      </A></TD></TR>
  <TR vAlign=top>
    <TD align=left><A
      href="#page_12">RISK
      FACTORS </A></TD>
    <TD align=right width="5%" ><A
      href="#page_12">7
      </A></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_21">SPECIAL
      NOTE REGARDING FORWARD-LOOKING STATEMENTS </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee ><A
      href="#page_21">16
      </A></TD></TR>
  <TR vAlign=top>
    <TD align=left><A
      href="#page_22">USE
      OF PROCEEDS </A></TD>
    <TD align=right width="5%" ><A
      href="#page_22">17
      </A></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_22">MARKET
      FOR COMMON EQUITY AND RELATED SHAREHOLDER MATTERS </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee ><A
      href="#page_22">17
      </A></TD></TR>
  <TR vAlign=top>
    <TD align=left><A
      href="#page_25">THE
      LINCOLN PARK TRANSACTION </A></TD>
    <TD align=right width="5%" ><A
      href="#page_25">20
      </A></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_29">SELLING
      SECURITY HOLDERS </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee ><A
      href="#page_29">24
      </A></TD></TR>
  <TR vAlign=top>
    <TD align=left><A
      href="#page_30">MANAGEMENT&#146;S
      DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
      </A></TD>
    <TD align=right width="5%" ><A
      href="#page_30">25
      </A></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_40">BUSINESS
      </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee ><A
      href="#page_40">35
      </A></TD></TR>
  <TR vAlign=top>
    <TD align=left><A
      href="#page_46">MANAGEMENT
      </A></TD>
    <TD align=right width="5%" ><A
      href="#page_46">41
      </A></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_54">DESCRIPTION
      OF SECURITIES </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee ><A
      href="#page_54">49
      </A></TD></TR>
  <TR vAlign=top>
    <TD align=left><A
      href="#page_55">PLAN
      OF DISTRIBUTION </A></TD>
    <TD align=right width="5%" ><A
      href="#page_55">50
      </A></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_56">LEGAL
      MATTERS </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee ><A
      href="#page_56">51
      </A></TD></TR>
  <TR vAlign=top>
    <TD align=left><A
      href="#page_56">EXPERTS
      </A></TD>
    <TD align=right width="5%" ><A
      href="#page_56">51
      </A></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_57">WHERE
      YOU CAN FIND ADDITIONAL INFORMATION </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee ><A
      href="#page_57">52
      </A></TD></TR>
  <TR vAlign=top>
    <TD align=left><A
      href="#page_57">DISCLOSURE
      OF COMMISSION POSITION ON INDEMNIFICATION FOR SECURITIES ACT LIABILITY
    </A></TD>
    <TD align=right width="5%" ><A
      href="#page_57">52
      </A></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_58">FINANCIAL
      STATEMENTS </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee ><A
      href="#page_58">53
      </A></TD></TR>
  </TABLE>
<P align=justify>You should rely only on the information contained in this
prospectus. We have not, and the selling stockholder has 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 is the selling stockholder 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>iii </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 clinical stage biopharmaceutical company engaged in
the development of drug candidates to treat Alzheimer&#146;s disease, other central
nervous system (CNS) diseases, and various types of cancer. 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 December 2014 a Phase 2a clinical trial was initiated for
ANAVEX 2-73, which is being evaluated for the treatment of Alzheimer&#146;s disease.
The randomized trial is designed to assess the safety and exploratory efficacy
of ANAVEX 2-73 alone as well as in combination with donepezil (ANAVEX PLUS) in
patients with mild to moderate Alzheimer&#146;s disease. ANAVEX 2-73 targets sigma-1
and muscarinic receptors, which have been shown in preclinical studies to reduce
stress levels in the brain and to reverse the pathological hallmarks observed in
Alzheimer&#146;s disease. ANAVEX 2-73 showed no serious adverse events in a
previously performed Phase 1 study. In pre-clinical studies, ANAVEX 2-73
demonstrated anti-amnesic and neuroprotective properties in various animal
models including the transgenic mouse model Tg2576. </P>
<P align=justify>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 clinical 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>As well, recent preclinical data validates ANAVEX 2-73 as a
prospective platform drug for other neurodegenerative diseases beyond
Alzheimer&#146;s, most specifically epilepsy. The data demonstrates significant
improvement in the reduction of seizures relative to three generations of
epilepsy drugs currently on the market, as well as significant synergy with each
of these drugs.</P>
<P align=justify><B>ANAVEX PLUS</B> </P>
<P align=justify>ANAVEX PLUS, a combination of ANAVEX 2-73 with donepezil
(Aricept&#174;) is a potential novel combination drug for Alzheimer&#146;s disease.
Aricept&#174; (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 3-71 </B></P>
<P align=justify>ANAVEX 3-71, previously named AF710B is a preclinical drug
candidate with a novel mechanism of action via sigma-1 receptor activation and
M1 muscarinic allosteric modulation, which has shown to enhance neuroprotection
and cognition in Alzheimer's disease. ANAVEX 3-71 is a CNS-penetrable
mono-therapy that bridges treatment of both cognitive impairments with disease
modifications. It is highly effective in very small doses against the major
Alzheimer's hallmarks in transgenic (3xTg-AD) mice, including cognitive
deficits, amyloid and tau pathologies, and also has beneficial effects on
inflammation and mitochondrial dysfunctions. ANAVEX 3-71 indicates extensive
therapeutic advantages in Alzheimer's and other protein-aggregation-related
diseases given its ability to enhance neuroprotection and cognition via sigma-1
receptor activation and M1 muscarinic allosteric modulation. </P>

<P align=center>2 </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 width="5%" align=center>&nbsp;</TD>
    <TD width="5%" align=left>&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>Alzheimer&#146;s disease &#150; In 2014, an estimated 5.2 million
      Americans were suffering from Alzheimer&#146;s disease. The Alzheimer&#146;s
      Association&#174; 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. </P></TD></TR>
  <TR vAlign=top>
    <TD align=center>&nbsp;</TD>
    <TD align=left>&#149; </TD>
    <TD align=left width="90%">
      <P 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. </P></TD></TR>
  <TR vAlign=top>
    <TD align=center>&nbsp;</TD>
    <TD align=left>&#149; </TD>
    <TD align=left width="90%">
      <P 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. </P></TD></TR>
  <TR vAlign=top>
    <TD align=center>&nbsp;</TD>
    <TD align=left>&#149; </TD>
    <TD align=left width="90%">
      <P 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.      </P></TD></TR></TABLE>
<P align=center>3 </P>
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  <TR vAlign=top>
    <TD width="5%" align=center>&nbsp;</TD>
    <TD width="5%" align=left>&#149; </TD>
    <TD align=left width="90%">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. </TD></TR>
  <TR vAlign=top>
    <TD align=center>&nbsp;</TD>
    <TD align=left>&#149; </TD>
    <TD align=left width="90%">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>&nbsp;</TD>
    <TD align=left>&#149; </TD>
    <TD align=left width="90%">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>On July 5, 2013, we entered into a purchase agreement with
Lincoln Park, which we refer to in this prospectus as the Purchase Agreement,
pursuant to which Lincoln Park has agreed to purchase from us up to $10,000,000
of our common stock (subject to certain limitations) from time to time over a
25-month period. Also on July 5, 2013, we entered into a Registration Rights
Agreement, (the &#147;Registration Rights Agreement&#148;), with Lincoln Park, pursuant to
which we have filed with the SEC the registration statement that includes this
prospectus to register for resale under the Securities Act of 1933, as amended,
or the Securities Act, the shares that have been or may be issued to Lincoln
Park under the Purchase Agreement. </P>
<P align=justify>Other than (i) 250,000 shares of our common stock that we have
already issued to Lincoln Park for a total purchase price of $100,000 as an
initial purchase under the Purchase Agreement, or the Initial Purchase, and (ii)
341,858 shares of our common stock that we have already issued to Lincoln Park
pursuant to the terms of the Purchase Agreement as consideration for its
commitment to purchase additional shares of our common stock under the Purchase
Agreement, we do not have the right to commence any further sales to Lincoln
Park under the Purchase Agreement until the SEC has declared effective the
registration statement of which this prospectus forms a part. Thereafter, we
may, from time to time and at our sole discretion, direct Lincoln Park to
purchase shares of our common stock in amounts up to 100,000 shares on any
single business day so long as at least one business day has passed since the
most recent purchase. We can also accelerate the amount of our common stock to
be purchased under certain circumstances to up to 150,000 shares but not
exceeding $500,000 per purchase plus an additional &#147;accelerated amount&#148; under
certain circumstances. Except as described in this prospectus we will control
the timing and amount of any sales of our common stock to Lincoln Park. 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 our common stock immediately
preceding the time of sale as computed under the Purchase Agreement without any
fixed discount; provided that in no event will such shares be sold to Lincoln
Park when our closing sale price is less than $0.50 per share, subject to
adjustment as provided in the Purchase Agreement. The purchase price per share
will be equitably adjusted for any reorganization, recapitalization, non-cash
dividend, stock split, or other similar transaction occurring during the
business days used to compute such price. We may at any time in our sole
discretion terminate the Purchase Agreement without fee, penalty or cost upon
one business day notice. Lincoln Park may not assign or transfer its rights and
obligations under the Purchase Agreement.</P>
<P align=center>4 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=-->
<P align=justify>As of May 14, 2015, there were 77,243,580 shares of our common
stock outstanding, of which 48,215,168 shares were held by non-affiliates,
excluding the 591,858 shares that we have already been issued to Lincoln Park
under the Purchase Agreement. Although the Purchase Agreement provides that we
may sell up to $10,000,000 of our common stock to Lincoln Park, only 9,975,267
shares of our common stock are being offered under this prospectus, which
represents (i) 250,000 shares that we issued to Lincoln Park in the Initial
Purchase, (ii) 341,858 shares that we issued to Lincoln Park as a commitment
fee, (iii) an additional 9,250,000 shares which may be issued to Lincoln Park in
the future under the Purchase Agreement, and (iv) 133,409 shares that we are
required to issue proportionally in the future, as an additional commitment fee,
if and when we sell shares to Lincoln Park under the Purchase Agreement. The
additional commitment shares are issued pro rata as Lincoln Park purchases up to
$10,000,000 of our common stock as directed by us. For example, if we elect, at
our sole discretion, to require Lincoln Park to purchase $100,000 of our stock
then we would issue 1,334 shares of the pro rata commitment fee which is the
product of $100,000 (the amount we have elected to sell) divided by $10,000,000
(the total amount we can sell Lincoln Park under the Purchase Agreement
multiplied by 133,409 (the total number of pro rata commitment shares). The pro
rata commitment shares will only be issued pursuant to this formula as and when
we elect at our discretion to sell stock to Lincoln Park. Lincoln Park may not
assign or transfer its rights and obligations under the Purchase Agreement. If
all of the 9,975,267 shares offered by Lincoln Park under this prospectus were
issued and outstanding as of the date hereof, such shares would represent
approximately 13% of the total number of shares of our common stock outstanding
and 20% of the total number of outstanding shares held by non-affiliates, in
each case as of the date hereof. If we elect to issue and sell more than the
9,975,267 shares offered under this prospectus to Lincoln Park, which we have
the right, but not the obligation, to do, we must first register for resale
under the Securities Act any such additional shares, which could cause
additional substantial dilution to our stockholders. The number of shares
ultimately offered for resale by Lincoln Park is dependent upon the number of
shares we sell to Lincoln Park under the Purchase Agreement.</P>
<P align=justify>Issuances of our common stock in this offering will not affect
the rights or privileges of our existing stockholders, except that the economic
and voting interests of each of our existing stockholders will be diluted as a
result of any such issuance. Although the number of shares of common stock that
our existing stockholders own will not decrease, the shares owned by our
existing stockholders will represent a smaller percentage of our total
outstanding shares after any such issuance to Lincoln Park.</P>
<P align=justify><B>Securities Offered</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 width="50%" align=left
    noWrap
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid">
    <p style="margin-left: 5pt; margin-right: 5pt">Common Stock offered by the selling stockholder </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid"
    noWrap align=left colSpan=2>
    <p style="margin-left: 5pt; margin-right: 5pt">9,975,267 shares consisting of:  </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left>
    <p style="margin-left: 5pt; margin-right: 5pt">&nbsp; </TD>
    <TD align=left width="5%">
    <p style="margin-left: 5pt; margin-right: 5pt">&#149; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid" align=left width="45%">
    <p style="margin-left: 5pt; margin-right: 5pt">341,858
      commitment shares issued to Lincoln Park </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left>
    <p style="margin-left: 5pt; margin-right: 5pt"></TD>
    <TD align=left width="5%">
    <p style="margin-left: 5pt; margin-right: 5pt">&#149; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid" align=left width="45%">
      <P align=justify style="margin-left: 5pt; margin-right: 5pt">9,500,000 shares we may sell to Lincoln Park under the
      Purchase Agreement, including 250,000 issued in connection with the
      $100,000 initial purchase and </P></TD></TR>
  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left>
    <p style="margin-left: 5pt; margin-right: 5pt"></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="5%">
    <p style="margin-left: 5pt; margin-right: 5pt">&#149; </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="45%">
      <P align=justify style="margin-left: 5pt; margin-right: 5pt">133,409 shares that we are required to issue
      proportionally in the future, as an additional commitment fee, if and when
      we sell additional shares to Lincoln Park under the Purchase Agreement
    </P></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left>
    <p style="margin-left: 5pt; margin-right: 5pt">Common stock outstanding prior to the offering </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid" align=left
      colSpan=2>
    <p style="margin-left: 5pt; margin-right: 5pt">77,243,580 shares, including 250,000 initial purchase </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left>
    <p style="margin-left: 5pt; margin-right: 5pt">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid" align=left
      colSpan=2>
    <p style="margin-left: 5pt; margin-right: 5pt">shares and 341,858 commitment shares previously issued </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left>
    <p style="margin-left: 5pt; margin-right: 5pt">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid" align=left
      colSpan=2>
    <p style="margin-left: 5pt; margin-right: 5pt">to Lincoln Park under the Purchase Agreement (and </TD>
  </TR>
  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left>
    <p style="margin-left: 5pt; margin-right: 5pt">&nbsp; </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left colSpan=2>
    <p style="margin-left: 5pt; margin-right: 5pt">included in this offering). </TD>
  </TR>
  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left rowSpan=2>
      <P align=justify style="margin-left: 5pt; margin-right: 5pt">Common stock to be outstanding after giving effect to the
      total issuance of 9,975,267 shares to Lincoln Park under the Purchase
      Agreement registered hereunder </P></TD>
    <TD style="BORDER-RIGHT: #000000 1px solid" align=left
      colSpan=2>
    <p style="margin-left: 5pt; margin-right: 5pt">87,218,847 shares </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="5%"></TD>
  <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="45%"></TD>
  </TR></TABLE>
<P align=center>5 </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
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left>
    <p style="margin-left: 5pt; margin-right: 5pt">Use of proceeds </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="50%">
      <P align=justify style="margin-left: 5pt; margin-right: 5pt">We will not receive any proceeds from the sale of the
      shares of common stock by Lincoln Park in this offering. However, we may
      receive up to $10,000,000 from sales of shares under the Purchase
      Agreement. Any proceeds that we receive from sales to Lincoln Park under
      the Purchase Agreement will be used to further our business plan of
      advancing human clinical trials of ANAVEX 2-73 and for general corporate
      purposes. See &#147;Use of Proceeds.&#148; </P></TD></TR>
  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left>
    <p style="margin-left: 5pt; margin-right: 5pt">Risk factors </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="50%">
      <P align=justify style="margin-left: 5pt; margin-right: 5pt">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. </P></TD></TR>
  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left>
    <p style="margin-left: 5pt; margin-right: 5pt">OTC Markets (OTCQX) symbol </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="50%">
      <P align=justify style="margin-left: 5pt; margin-right: 5pt">AVXL </P></TD></TR></TABLE>
<P align=center>6 </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, 2015, we
have an accumulated deficit of $55,084,902. 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 a clinical stage biopharmaceutical 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>7 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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<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 width="5%" align=center>&nbsp;</TD>
    <TD width="5%" align=left>&#149; </TD>
    <TD align=left width="90%">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>&nbsp;</TD>
    <TD align=left>&#149; </TD>
    <TD align=left width="90%">our potential drug compounds may prove to be
      too expensive to manufacture or administer to patients; </TD></TR>
  <TR vAlign=top>
    <TD align=center>&nbsp;</TD>
    <TD align=left>&#149; </TD>
    <TD align=left width="90%">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>&nbsp;</TD>
    <TD align=left>&#149; </TD>
    <TD align=left width="90%">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>&nbsp;</TD>
    <TD align=left>&#149; </TD>
    <TD align=left width="90%">even if our potential drug compounds are
      approved, they may not achieve commercial acceptance; </TD></TR>
  <TR vAlign=top>
    <TD align=center>&nbsp;</TD>
    <TD align=left>&#149; </TD>
    <TD align=left width="90%">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>&nbsp;</TD>
    <TD align=left>&#149; </TD>
    <TD align=left width="90%">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 width="5%" align=center>&nbsp;</TD>
    <TD width="5%" align=left>&#149; </TD>
    <TD align=left width="90%">conduct research, non-clinical testing and
      human studies; </TD></TR>
  <TR vAlign=top>
    <TD align=center>&nbsp;</TD>
    <TD align=left>&#149; </TD>
    <TD align=left width="90%">establish pilot scale and commercial scale
      manufacturing processes and facilities; and </TD></TR>
  <TR vAlign=top>
    <TD align=center>&nbsp;</TD>
    <TD align=left>&#149; </TD>
    <TD align=left width="90%">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 width="5%" align=center>&nbsp;</TD>
    <TD width="5%" align=left>&#149; </TD>
    <TD align=left width="90%">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>&nbsp;</TD>
    <TD align=left>&#149; </TD>
    <TD align=left width="90%">the scope and results of pre-clinical testing
      and human studies; </TD></TR>
  <TR vAlign=top>
    <TD align=center>&nbsp;</TD>
    <TD align=left>&#149; </TD>
    <TD align=left width="90%">the time and costs involved in obtaining
      regulatory approvals; </TD></TR>
  <TR vAlign=top>
    <TD align=center>&nbsp;</TD>
    <TD align=left>&#149; </TD>
    <TD align=left width="90%">the time and costs involved in preparing,
      filing, prosecuting, securing, maintaining and enforcing patents; </TD></TR>
  <TR vAlign=top>
    <TD align=center>&nbsp;</TD>
    <TD align=left>&#149; </TD>
    <TD align=left width="90%">competing technological and market
      developments; </TD></TR>
  <TR vAlign=top>
    <TD align=center>&nbsp;</TD>
    <TD align=left>&#149; </TD>
    <TD align=left width="90%">our ability to establish additional
      collaborations; </TD></TR>
  <TR vAlign=top>
    <TD align=center>&nbsp;</TD>
    <TD align=left>&#149; </TD>
    <TD align=left width="90%">changes in our existing collaborations; </TD></TR>
  <TR vAlign=top>
    <TD align=center>&nbsp;</TD>
    <TD align=left>&#149; </TD>
    <TD align=left width="90%">the cost of manufacturing scale-up; and </TD></TR>
  <TR vAlign=top>
    <TD align=center>&nbsp;</TD>
    <TD align=left>&#149; </TD>
    <TD align=left width="90%">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=center>8 </P>
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<!--$$/page=-->
<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 width="5%" align=center >&nbsp;</TD>
    <TD width="5%" align=left >&#149; </TD>
    <TD align=left width="90%">efficacy or safety concerns with the potential
      drug compounds, even if not justified; </TD></TR>
  <TR vAlign=top>
    <TD align=center >&nbsp;</TD>
    <TD align=left >&#149; </TD>
    <TD align=left width="90%">manufacturing difficulties or concerns; </TD></TR>
  <TR vAlign=top>
    <TD align=center >&nbsp;</TD>
    <TD align=left >&#149; </TD>
    <TD align=left width="90%">regulatory proceedings subjecting the potential
      drug compounds to potential recall; </TD></TR>
  <TR vAlign=top>
    <TD align=center >&nbsp;</TD>
    <TD align=left >&#149; </TD>
    <TD align=left width="90%">publicity affecting doctor prescription or
      patient use of the potential drug compounds; </TD></TR>
  <TR vAlign=top>
    <TD align=center >&nbsp;</TD>
    <TD align=left >&#149; </TD>
    <TD align=left width="90%">pressure from competitive products; or </TD></TR>
  <TR vAlign=top>
    <TD align=center >&nbsp;</TD>
    <TD align=left >&#149; </TD>
  <TD align=left width="90%">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=center>9 </P>
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<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 width="5%" align=center>&nbsp;</TD>
    <TD width="5%" align=left>&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>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; </P></TD></TR>
  <TR vAlign=top>
    <TD align=center>&nbsp;</TD>
    <TD align=left>&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>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 </P></TD></TR>
  <TR vAlign=top>
    <TD align=center>&nbsp;</TD>
    <TD align=left>&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>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.  </P></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=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=center>10 </P>
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<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=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=center>11 </P>
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<P align=justify><B><I>The patent positions of biopharmaceutical products and
processes 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 hold ownership rights to one patent and five U.S. patent
applications with various international counterpart, all of which relate to drug
candidates. We are seeking the remaining rights as to one application, and
declarations from the same co-inventor. 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%">&nbsp;</TD>
    <TD vAlign=top align=left 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%">&nbsp;</TD>
    <TD vAlign=top align=left 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%">&nbsp;</TD>
    <TD vAlign=top align=left 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%">&nbsp;</TD>
    <TD vAlign=top align=left 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%">&nbsp;</TD>
    <TD vAlign=top align=left 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%">&nbsp;</TD>
    <TD vAlign=top align=left 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%">&nbsp;</TD>
    <TD vAlign=top align=left 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%">&nbsp;</TD>
    <TD vAlign=top align=left 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%">&nbsp;</TD>
    <TD vAlign=top align=left 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 less willing to protect trade secrets. Our
competitors may independently develop equivalent knowledge, methods and
know-how.</P>
<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=center>12 </P>
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<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, 2015, we had total liabilities of $1,662,078
and accumulated deficit of $55,084,902. 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 width="5%" align=center>&nbsp;</TD>
    <TD width="5%" align=center>&#149; </TD>
    <TD align=left width="90%">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>&nbsp;</TD>
    <TD align=center>&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>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; </P></TD></TR>
  <TR vAlign=top>
    <TD align=center>&nbsp;</TD>
    <TD align=center>&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>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; </P></TD></TR>
  <TR vAlign=top>
    <TD align=center>&nbsp;</TD>
    <TD align=center>&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>limit our flexibility in planning for, or reacting to,
  changes in our business and the industry in which we operate; and  </P></TD></TR>
  <TR vAlign=top>
    <TD align=center>&nbsp;</TD>
    <TD align=center>&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>place us at a competitive disadvantage compared to our
      competitors that have proportionally less debt. </P></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, 2014, and there have been no changes to our
internal control over financial reporting as of March 31, 2015. 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
2015 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>13 </P>
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<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>&#149; </TD>
    <TD align=left width="95%">actual or anticipated variations in our
      quarterly operating results; </TD></TR>
  <TR vAlign=top>
    <TD align=center>&#149; </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>&#149; </TD>
    <TD align=left width="95%">changes in accounting treatments or principles;
    </TD></TR>
  <TR vAlign=top>
    <TD align=center>&#149; </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>&#149; </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
400,000,000 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 OTCQX. Trading in
stock quoted on OTC Market&#146;s OTCQX 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
OTCQX is not a stock exchange, and trading of securities quoted on OTC Market&#146;s
OTCQX 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=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=center>14 </P>
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<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 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>15 </P>
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<P align=justify><B><I>The exercise or conversion of the Warrants and Debentures
issued to Private Placement Investors 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 certain
investors pursuant to which the Company agreed to sell, and the investors 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 investors 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, 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><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>16 </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 Lincoln Park. We will not receive any
proceeds upon the sale of shares by Lincoln Park in this offering. However, we
may receive gross proceeds of up to $10,000,000 under the Purchase Agreement
with Lincoln Park over an approximately 25-month period, assuming that we sell
the full amount of our common stock that we have the right, but not the
obligation, to sell to Lincoln Park under that agreement. See &#147;Plan of
Distribution&#148; elsewhere in this prospectus for more information. </P>
<P align=justify>We will retain broad discretion in determining how we will
allocate the proceeds from any sales to Lincoln Park. However, we expect that
any proceeds that we receive from sales to Lincoln Park under the Purchase
Agreement will be used to further our business plan of advancing human clinical
trials of AVAVEX 2-73 and for general corporate and administrative purposes.
</P>
<P align=justify>Although we have no specific plans for use of proceeds as of
the date of this prospectus, we believe that approximately 65% of any proceeds
received may be used towards our advancing human clinical trials of AVAVEX 2-73
and approximately 35% of any proceeds received 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 OTCQX 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 OTCQX. We obtained the following high and low bid
information from the OTCQX Markets. 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
June 3, 2015, the closing price of our common stock as reported by OTCQX was
$0.40 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 noWrap align=left>Quarter Ended </TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=center width="12%">High </TD>
    <TD noWrap align=left width="2%">&nbsp;</TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=center width="12%">Low </TD>
    <TD noWrap align=left width="2%">&nbsp;</TD></TR>
  <TR>
    <TD noWrap>&nbsp; </TD>
    <TD noWrap width="1%">&nbsp;</TD>
    <TD noWrap align=center width="12%">&nbsp; </TD>
    <TD noWrap width="2%">&nbsp;</TD>
    <TD noWrap width="1%">&nbsp;</TD>
    <TD noWrap align=center width="12%">&nbsp; </TD>
    <TD noWrap width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>March 31, 2015 </TD>
    <TD align=left width="1%" bgColor=#e6efff></TD>
    <TD align=center width="12%" bgColor=#e6efff>$ &nbsp;0.25 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff></TD>
    <TD align=center width="12%" bgColor=#e6efff>$ 0.16 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>December 31, 2014 </TD>
    <TD align=left width="1%"></TD>
    <TD align=center width="12%">$ &nbsp;0.21 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%"></TD>
    <TD align=center width="12%">$ &nbsp;0.16 </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>September 30, 2014 </TD>
    <TD align=left width="1%" bgColor=#e6efff></TD>
    <TD align=center width="12%" bgColor=#e6efff>$&nbsp;&nbsp;0.35 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff></TD>
    <TD align=center width="12%" bgColor=#e6efff>$ &nbsp;0.18 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>June 30, 2014 </TD>
    <TD align=left width="1%"></TD>
    <TD align=center width="12%">$ &nbsp;046 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%"></TD>
    <TD align=center width="12%">$ &nbsp;0.27 </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>March 31, 2014 </TD>
    <TD align=left width="1%" bgColor=#e6efff></TD>
    <TD align=center width="12%" bgColor=#e6efff>$ &nbsp;0.53 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff></TD>
    <TD align=center width="12%" bgColor=#e6efff>$ &nbsp;0.25 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>December 31, 2013 </TD>
    <TD align=left width="1%"></TD>
    <TD align=center width="12%">$ &nbsp;0.65 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%"></TD>
    <TD align=center width="12%">$ &nbsp;0.25 </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>September 30, 2013 </TD>
    <TD align=left width="1%" bgColor=#e6efff></TD>
    <TD align=center width="12%" bgColor=#e6efff>$ &nbsp;0.75 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff></TD>
    <TD align=center width="12%" bgColor=#e6efff>$ &nbsp;0.49 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>June 30, 2013 </TD>
    <TD align=left width="1%"></TD>
    <TD align=center width="12%">$ &nbsp;0.83 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%"></TD>
    <TD align=center width="12%">$ &nbsp;0.45 </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>March 31, 2013 </TD>
    <TD align=left width="1%" bgColor=#e6efff></TD>
    <TD align=center width="12%" bgColor=#e6efff>$&nbsp;&nbsp;0.81 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff></TD>
    <TD align=center width="12%" bgColor=#e6efff>$ &nbsp;0.51 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>December 31, 2012 </TD>
    <TD align=left width="1%"></TD>
    <TD align=center width="12%">$ &nbsp;1.12 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%"></TD>
    <TD align=center width="12%">$ &nbsp;0.72 </TD>
    <TD align=left width="2%">&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=center>17 </P>
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<P align=justify><B><I>Holders of Common Stock </I></B></P><P align=justify>As of May 14, 2015, there were approximately 79 holders of
record of our common stock. As of such date, 77,243,580 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=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, 2014: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <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"
    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-LEFT: #000000 1px solid"
    noWrap align=left valign="bottom">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B>Plan Category</B>
    </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    noWrap align=left width="40%" valign="bottom">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    noWrap align=left width="20%" valign="bottom">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    noWrap align=center width="20%" valign="bottom"><B>Number of securities</B> </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    noWrap align=left valign="bottom">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    noWrap align=left width="40%" valign="bottom">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    noWrap align=left width="20%" valign="bottom">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    noWrap align=center width="20%" valign="bottom"><B>remaining available</B> </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    noWrap align=left valign="bottom">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    noWrap align=left width="40%" valign="bottom">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    noWrap align=left width="20%" valign="bottom">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    noWrap align=center width="20%" valign="bottom"><B>for future issuances</B> </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    noWrap align=left valign="bottom">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    noWrap align=left width="40%" valign="bottom">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    noWrap align=left width="20%" valign="bottom">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    noWrap align=center width="20%" valign="bottom"><B>under equity</B> </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    noWrap align=left valign="bottom">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    noWrap align=center width="40%" valign="bottom"><B>Number of securities to be issued
      upon</B> </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    noWrap align=center width="20%" valign="bottom"><B>Weighted-average</B> </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    noWrap align=center width="20%" valign="bottom"><B>compensation plans</B> </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    noWrap align=left valign="bottom">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    noWrap align=center width="40%" valign="bottom"><B>exercise of</B> </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    noWrap align=center width="20%" valign="bottom"><B>exercise price of</B> </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    noWrap align=center width="20%" valign="bottom"><B>(excluding securities</B> </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    noWrap align=left valign="bottom">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    noWrap align=center width="40%" valign="bottom"><B>outstanding options,</B> </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    noWrap align=center width="20%" valign="bottom"><B>outstanding options,</B> </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    noWrap align=center width="20%" valign="bottom"><B>reflected in column</B> </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    noWrap align=left valign="bottom">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    noWrap align=center width="40%" valign="bottom"><B>warrants and rights</B> </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    noWrap align=center width="20%" valign="bottom"><B>warrants and rights</B> </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    noWrap align=center width="20%" valign="bottom"><B>(a))</B> </TD></TR>
  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    noWrap align=left valign="bottom">&nbsp; </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    noWrap align=center width="40%" valign="bottom"><B>(a)</B> </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    noWrap align=center width="20%" valign="bottom"><B>(b)</B> </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    noWrap align=center width="20%" valign="bottom"><B>(c)</B> </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-RIGHT: 1px solid #000000; BORDER-LEFT: 1px solid #000000; ; border-bottom-style:solid; border-bottom-width:1"
    align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">Equity compensation plans approved by security holders </TD>
    <TD style="BORDER-RIGHT: 1px solid #000000; BORDER-LEFT: 1px solid #000000; ; border-bottom-style:solid; border-bottom-width:1"
    align=right width="40%" valign="bottom">&nbsp; 3,170,000 </TD>
    <TD style="BORDER-RIGHT: 1px solid #000000; BORDER-LEFT: 1px solid #000000; ; border-bottom-style:solid; border-bottom-width:1"
    align=right width="20%" valign="bottom">&nbsp; .70 </TD>
    <TD style="BORDER-RIGHT: 1px solid #000000; BORDER-LEFT: 1px solid #000000; ; border-bottom-style:solid; border-bottom-width:1"
    align=right width="20%" valign="bottom">&nbsp; 830,000 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-RIGHT: 1px solid #000000; BORDER-LEFT: 1px solid #000000; ; border-top-style:solid; border-top-width:1; border-bottom-style:solid; border-bottom-width:1"
    align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">Equity compensation plans not approved by security holders </TD>
    <TD style="BORDER-RIGHT: 1px solid #000000; BORDER-LEFT: 1px solid #000000; ; border-top-style:solid; border-top-width:1; border-bottom-style:solid; border-bottom-width:1"
    align=right width="40%" valign="bottom">Nil &nbsp; </TD>
    <TD style="BORDER-RIGHT: 1px solid #000000; BORDER-LEFT: 1px solid #000000; ; border-top-style:solid; border-top-width:1; border-bottom-style:solid; border-bottom-width:1"
    align=right width="20%" valign="bottom">NA </TD>
    <TD style="BORDER-RIGHT: 1px solid #000000; BORDER-LEFT: 1px solid #000000; ; border-top-style:solid; border-top-width:1; border-bottom-style:solid; border-bottom-width:1"
    align=right width="20%" valign="bottom">NA </TD></TR>
  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: 1px solid #000000; BORDER-LEFT: 1px solid #000000; BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:1"
    align=left>
    <p style="text-indent: -15pt; margin-left: 15pt"><B>Total</B> </TD>
    <TD
    style="BORDER-RIGHT: 1px solid #000000; BORDER-LEFT: 1px solid #000000; BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:1"
    align=right width="40%" valign="bottom"><B>3,170,000</B> </TD>
    <TD
    style="BORDER-RIGHT: 1px solid #000000; BORDER-LEFT: 1px solid #000000; BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:1"
    align=right width="20%" valign="bottom"><B>.70</B> </TD>
    <TD
    style="BORDER-RIGHT: 1px solid #000000; BORDER-LEFT: 1px solid #000000; BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:1"
    align=right width="20%" valign="bottom"><B>830,000</B> </TD></TR></TABLE>
<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, 2014,
3,170,000 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=center>18 </P>
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<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,
2014, 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.</P>
<P align=center><B>THE LINCOLN PARK TRANSACTION</B></P>
<P align=justify><B>General</B></P>
<P align=justify>On July 5, 2013, we entered into the Purchase Agreement and the
Registration Rights Agreement with Lincoln Park. Pursuant to the terms of the
Purchase Agreement, Lincoln Park purchased 250,000 shares of our common stock
for $100,000 and has agreed to purchase from us up to $10,000,000 in the
aggregate of our common stock (subject to certain limitations) from time to time
over a 25-month period. Pursuant to the terms of the Registration Rights
Agreement, we have filed with the SEC the registration statement that includes
this prospectus to register for resale under the Securities Act the shares that
have been or may be issued to Lincoln Park under the Purchase Agreement. </P>
<P align=justify>Concurrently with the execution of the Purchase Agreement on
July 5, 2013, we issued to Lincoln Park 341,858 shares of our common stock as a
fee for its commitment to purchase additional shares of our common stock under
the Purchase Agreement and 250,000 shares of our common stock in consideration
of $100,000 in an Initial Purchase. Other than the shares of our common stock
that we have already issued to Lincoln Park as described above, we do not have
the right to commence any further sales to Lincoln Park under the Purchase
Agreement until the SEC has declared effective the registration statement of
which this prospectus forms a part. Thereafter and upon satisfaction of the
other conditions set forth in the Purchase Agreement, we may, from time to time
and at our sole discretion, direct Lincoln Park to purchase shares of our common
stock in amounts up to 100,000 shares on any single business day so long as at
least one business day has passed since the most recent purchase. We can also
accelerate the amount of our common stock to be purchased under certain
circumstances to up to 150,000 shares but not exceeding $500,000 per purchase
plus an additional &#147;accelerated amount&#148; under certain circumstances. The
purchase price per share is based on the market price of our common stock
immediately preceding the time of sale as computed under the Purchase Agreement
without any fixed discount. We issued 341,858 shares of our stock to Lincoln
Park as a commitment fee for entering into the Purchase Agreement and we are
obligated to issue up to an additional 133,409 shares pro rata as Lincoln Park
purchases up to $10,000,000 of our common stock as directed by us. For example,
if we elect, at our sole discretion, to require Lincoln Park to purchase
$100,000 of our stock then we would issue 1,334 shares of the pro rata
commitment fee which is the product of $100,000 (the amount we have elected to
sell) divided by $10,000,000 (the amount we can sell Lincoln Park under the
Purchase Agreement multiplied by 133,409 (the total number of pro rata
commitment shares). The pro rata commitment shares will only be issued pursuant
to this formula as and when we elect at our discretion to sell stock to Lincoln
Park. Lincoln Park may not assign or transfer its rights and obligations under
the Purchase Agreement.</P>
<P align=justify><B>Purchase of Shares Under the Purchase Agreement</B></P>
<P align=justify>Under the Purchase Agreement, on any business day selected by
us, we may direct Lincoln Park to purchase up to 100,000 shares of our common
stock on any such business day so long as one business day has passed since the
last purchase. On any day that the closing sale price of our common stock is not
below $1.50 the purchase amount may be increased, at our sole discretion, to up
to 150,000 shares of our common stock per purchase provided that the amount of
the Regular Purchase cannot exceed $500,000. The purchase price per share for
each such Regular Purchase will be equal to the lower of:</P>
<P align=center>19 </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 width="5%" align=center >&nbsp;</TD>
    <TD width="5%" align=left >&#149; </TD>
    <TD align=left width="90%">the lowest sale price for our common stock on
      the purchase date of such shares; or </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center >&nbsp;</TD>
    <TD align=left >&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>the arithmetic average of the three lowest closing sale
      prices for our common stock during the 12 consecutive business days ending
      on the business day immediately preceding the purchase date of such
      shares. </P></TD></TR></TABLE>
<P align=justify>In addition to Regular Purchases described above, we may also
direct Lincoln Park, on any business day on which we have properly submitted a
Regular Purchase notice, to purchase an additional amount of our common stock,
which we refer to as an Accelerated Purchase, not to exceed the lesser of: </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="5%" align=center >&nbsp;</TD>
    <TD width="5%" align=left >&#149; </TD>
    <TD align=left width="90%">30% of the aggregate shares of our common stock
      traded during normal trading hours on the purchase date; and </TD></TR>
  <TR vAlign=top>
    <TD align=center >&nbsp;</TD>
    <TD align=left >&#149; </TD>
    <TD align=left width="90%">two times the number of purchase shares
purchased pursuant to the corresponding Regular Purchase.</TD></TR></TABLE>
<P align=justify>The purchase price per share for each such Accelerated Purchase
will be equal to the lower of:</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="5%" align=center >&nbsp;</TD>
    <TD width="5%" align=left >&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>95% of the volume weighted average price during (i) the
      entire trading day on the purchase date, if the volume of shares of our
      common stock traded on the purchase date has not exceeded a volume maximum
      calculated in accordance with the Purchase Agreement, or (ii) the portion
      of the trading day of the purchase date (calculated starting at the
      beginning of normal trading hours) until such time at which the volume of
    shares of our common stock traded has exceeded such volume maximum; or    </P></TD></TR>
  <TR vAlign=top>
    <TD align=center >&nbsp;</TD>
    <TD align=left >&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>the closing sale price of our common stock on the
      purchase date. </P></TD></TR></TABLE>
<P align=justify>In the case of both Regular Purchases and Accelerated
Purchases, the purchase price per share will be equitably adjusted for any
reorganization, recapitalization, non-cash dividend, stock split, reverse stock
split or other similar transaction occurring during the business days used to
compute the purchase price.</P>
<P align=justify>Other than as set forth above, there are no trading volume
requirements or restrictions under the Purchase Agreement, and we will control
the timing and amount of any sales of our common stock to Lincoln Park.</P>
<P align=justify><B>Minimum Purchase Price</B></P>
<P align=justify>Under the Purchase Agreement, we have set a floor price of
$0.50 per share. Lincoln Park shall not purchase any shares of our common stock
on any day that the closing sale price of our common stock is below the floor
price. The floor price will be appropriately adjusted for any reorganization,
recapitalization, non-cash dividend, stock split or other similar transaction
and, effective upon the consummation of any such event, the floor price will be
the lower of (i) the adjusted price and (ii) $1.00. </P>
<P align=justify><B>Events of Default</B></P>
<P align=justify>Events of default under the Purchase Agreement include 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 width="5%" align=center >&nbsp;</TD>
    <TD width="5%" align=left >&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>the effectiveness of the registration statement of which
      this prospectus forms a part lapses for any reason (including, without
      limitation, the issuance of a stop order), or any required prospectus
      supplement and accompanying prospectus are unavailable for the resale by
      Lincoln Park of our common stock offered hereby, and such lapse or
      unavailability continues for a period of 10 consecutive business days or
    for more than an aggregate of 30 business days in any 365-day period;    </P></TD></TR>
  <TR vAlign=top>
    <TD align=center >&nbsp;</TD>
    <TD align=left >&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>suspension by our principal market of our common stock
      from trading for a period of three consecutive business days; </P></TD></TR>
  <TR vAlign=top>
    <TD align=center >&nbsp;</TD>
    <TD align=left >&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>the de-listing of our common stock from our principal
      market, provided our common stock is not immediately thereafter trading on
      the New York Stock Exchange, the NASDAQ Global Market, the NASDAQ Global
      Select Market, the NASDAQ Capital Market, the NYSE Amex or the OTC
  Bulletin Board (or nationally recognized successor thereto);  </P></TD></TR></TABLE>
<P align=center>20 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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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 width="5%" align=center >&nbsp;</TD>
    <TD width="5%" align=left >&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>the transfer agent&#146;s failure for five business days to
      issue to Lincoln Park shares of our common stock which Lincoln Park is
      entitled to receive under the Purchase Agreement; </P></TD></TR>
  <TR vAlign=top>
    <TD align=center >&nbsp;</TD>
    <TD align=left >&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>any breach of the representations or warranties or
      covenants contained in the Purchase Agreement or any related agreement
      which has or which could have a material adverse effect on us subject to a
      cure period of five business days; </P></TD></TR>
  <TR vAlign=top>
    <TD align=center >&nbsp;</TD>
    <TD align=left >&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>any voluntary or involuntary participation or threatened
      participation in insolvency or bankruptcy proceedings by or against us; or      </P></TD></TR>
  <TR vAlign=top>
    <TD align=center >&nbsp;</TD>
    <TD align=left >&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>if at any time we are not eligible to transfer our common
      stock electronically or a material adverse change in our business, financial condition, operations or
      prospects has occurred.</P></TD></TR>
  </TABLE>
<P align=justify>Lincoln Park does not have the right to terminate the Purchase
Agreement upon any of the events of default set forth above. During an event of
default, all of which are outside of Lincoln Park&#146;s control, shares of our
common stock cannot be sold by us or purchased by Lincoln Park under the
Purchase Agreement.</P>
<P align=justify><B>Our Termination Rights</B></P>
<P align=justify>We have the unconditional right, at any time, for any reason
and without any payment or liability to us, to give notice to Lincoln Park to
terminate the Purchase Agreement. In the event of bankruptcy proceedings by or
against us, the Purchase Agreement will automatically terminate without action
of any party.</P>
<P align=justify><B>No Short-Selling or Hedging by Lincoln Park</B></P>
<P align=justify>Lincoln Park has agreed that neither it nor any of its
affiliates shall engage in any direct or indirect short-selling or hedging of
our common stock during any time prior to the termination of the Purchase
Agreement.</P>
<P align=justify><B>Effect of Performance of the Purchase Agreement on Our
Stockholders</B></P>
<P align=justify>All shares of common stock registered in this offering are
expected to be freely tradable. It is anticipated that shares registered in this
offering will be sold over a period of up to 25 months commencing on the date
that the registration statement including this prospectus becomes effective. The
sale by Lincoln Park of a significant amount of shares registered in this
offering at any given time could cause the market price of our common stock to
decline and to be highly volatile. Lincoln Park may ultimately purchase all,
some or none of the shares of common stock not yet issued but registered in this
offering. Lincoln Park may sell all, some or none of such shares. Therefore,
sales to Lincoln Park by us under the Purchase Agreement may result in
substantial dilution to the interests of other holders of our common stock. In
addition, if we sell a substantial number of shares to Lincoln Park under the
Purchase Agreement, or if investors expect that we will do so, the actual sales
of shares or the mere existence of our arrangement with Lincoln Park may 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 such sales.
However, we have the right to control the timing and amount of any sales of our
shares to Lincoln Park and the Purchase Agreement may be terminated by us at any
time at our discretion without any cost to us.</P>
<P align=justify>Pursuant to the terms of the Purchase Agreement, we have the
right, but not the obligation, to direct Lincoln Park to purchase up to
$10,000,000 of our common stock. Depending on the price per share at which we
sell our common stock to Lincoln Park, we may be authorized to issue and sell to
Lincoln Park under the Purchase Agreement more shares of our common stock than
are offered under this prospectus. If we choose to do so, we must first register
for resale under the Securities Act any such additional shares, which could
cause additional substantial dilution to our stockholders. The number of shares
ultimately offered for resale by Lincoln Park under this prospectus is dependent
upon the number of shares we direct Lincoln Park to purchase under the Purchase
Agreement.</P>
<P align=justify>The following table sets forth the amount of gross proceeds we
would receive from Lincoln Park from our sale of shares to Lincoln Park under
the Purchase Agreement at varying purchase prices:</P>
<P align=center>21 </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>
    <TD noWrap align=center><B>Assumed&nbsp;</B></TD>
    <TD noWrap align=center width="25%">&nbsp;</TD>
    <TD noWrap align=center width="25%"><B>&nbsp;Percentage of
    Outstanding</B></TD>
    <TD noWrap align=center width="25%"><B>&nbsp;Proceeds from the
      scale of</B></TD></TR>
  <TR vAlign=top>
    <TD noWrap align=center><B>Average</B> </TD>
    <TD noWrap align=center width="25%"><B>Number of Registered</B> </TD>
    <TD noWrap align=center width="25%"><B>Shares After Giving Effect to
      Shares to&nbsp;</B> </TD>
    <TD noWrap align=center width="25%" >&nbsp;<STRONG>Lincoln
      Park Under</STRONG></TD></TR>
  <TR vAlign=top>
    <TD noWrap align=center><B>Purchase Price</B> </TD>
    <TD noWrap align=center width="25%"><B>Shares to be Issued if</B> </TD>
    <TD noWrap align=center width="25%"><B>the Issuance to Lincoln Park</B>
</TD>
    <TD noWrap align=center width="25%"><B>the $10M Purchase</B> </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=center><B>Per Share</B> </TD>
    <TD noWrap align=center width="25%"><B>Full Purchase <sup>(1)(2)</sup></B><sup>
    </sup> </TD>
    <TD noWrap align=center width="25%"><sup>(3) </sup> </TD>
    <TD noWrap align=center width="25%"><B>Agreement</B> </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=center>$0.50<sup>(4) </sup> </TD>
    <TD noWrap align=center width="25%">9,500,000 </TD>
    <TD noWrap align=center width="25%">12% </TD>
    <TD noWrap align=center width="25%">$4,750,000.00 </TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>$0.40<sup>(5)(4) </sup> </TD>
    <TD align=center width="25%" bgColor=#e6efff>- </TD>
    <TD align=center width="25%" bgColor=#e6efff>- </TD>
    <TD align=center width="25%" bgColor=#e6efff>- </TD></TR>
  <TR vAlign=top>
    <TD align=center>$0.75 </TD>
    <TD align=center width="25%">9,500,000 </TD>
    <TD align=center width="25%">12% </TD>
    <TD align=center width="25%">$7,125,000.00 </TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>$0.80 </TD>
    <TD align=center width="25%" bgColor=#e6efff>9,500,000 </TD>
    <TD align=center width="25%" bgColor=#e6efff>12% </TD>
    <TD align=center width="25%" bgColor=#e6efff>$7,600,000.00 </TD></TR>
  <TR vAlign=top>
    <TD align=center>$1.00 </TD>
    <TD align=center width="25%">9,500,000 </TD>
    <TD align=center width="25%">12% </TD>
    <TD align=center width="25%">$9,500,000.00 </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%"><sup>(1) </sup> </TD>
    <TD>
      <P align=justify>Although the Purchase Agreement provides that we may sell
      up to $10,000,000 of our common stock to Lincoln Park, we only registered
      9,975,267 shares under this prospectus, which may or may not cover all the
      shares we ultimately sell to Lincoln Park under the Purchase Agreement,
      depending on the purchase price per share. As a result, we have included
      in this column only those shares that we are registering in this offering
      including the applicable additional commitment shares issuable to Lincoln
      Park.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><sup>(2) </sup> </TD>
    <TD>
      <P align=justify>The number of registered shares to be issued excludes the
      341,858 previously issued commitment shares and 133,409 additional
      commitment shares registered hereunder because no proceeds will be
      attributable to such commitment shares.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%"><sup>(3) </sup> </TD>
    <TD>
      <P align=justify>The denominator is based on 77,243,580 shares outstanding
      as of May 14, 2015, adjusted to include the 475,267 shares issued and to
      be issued to Lincoln Park as commitment shares in connection with this
      offering and the number of shares set forth in the adjacent column which
      we would have sold to Lincoln Park at the applicable assumed average
      purchase price per share. The numerator does not include the 475,267
      shares issued to Lincoln Park as commitment shares in connection with this
      offering, and is based on the number of shares registered in this offering
      to be issued under the Purchase Agreement as purchased by Lincoln Park at
      the applicable assumed purchase price per share set forth in the adjacent
      column. The number of shares in such column does not include shares that
      may be issued to Lincoln Park under the Purchase Agreement which are not
      registered in this offering.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%"><sup>(4) </sup> </TD>
    <TD>
      <P align=justify>Under the Purchase Agreement, we may not sell and Lincoln
      Park may not purchase any shares on a day in which the closing sale price
      of our common stock is below $0.50, as may be adjusted in accordance with
      the Purchase Agreement.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%"><sup>(5) </sup> </TD>
    <TD>
      <P align=justify>The closing sale price of our shares on June 3,
    2015.</P></TD></TR></TABLE>
<P align=center>22 </P>
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<P align=center><B>SELLING SECURITY HOLDERS</B> </P>
<P align=justify>This prospectus relates to the possible resale by the selling
stockholder, Lincoln Park, of shares of common stock that have been or may be
issued to Lincoln Park pursuant to the Purchase Agreement. We are filing the
registration statement of which this prospectus forms a part pursuant to the
provisions of the Registration Rights Agreement, which we entered into with
Lincoln Park on July 5, 2013 concurrently with our execution of the Purchase
Agreement, in which we agreed to provide certain registration rights with
respect to sales by Lincoln Park of the shares of our common stock that have
been or may be issued to Lincoln Park under the Purchase Agreement.</P>
<P align=justify>Lincoln Park, as the selling stockholder, may, from time to
time, offer and sell pursuant to this prospectus any or all of the shares that
we have sold or may sell to Lincoln Park under the Purchase Agreement. The
selling stockholder may sell some, all or none of its shares. We do not know how
long the selling stockholder will hold the shares before selling them, and we
currently have no agreements, arrangements or understandings with the selling
stockholder regarding the sale of any of the shares.</P>
<P align=justify>The following table presents information regarding the selling
stockholder and the shares that it may offer and sell from time to time under
this prospectus. The table is prepared based on information supplied to us by
the selling stockholder, and reflects its holdings as of May 14, 2015. Neither
Lincoln Park nor any of its affiliates has held a position or office, or had any
other material relationship, with us or any of our predecessors or affiliates.
As used in this prospectus, the term &#147;selling stockholder&#148; includes Lincoln Park
and any donees, pledgees, transferees or other successors in interest selling
shares received after the date of this prospectus from Lincoln Park as a gift,
pledge or other non-sale related transfer. Beneficial ownership is determined in
accordance with Rule 13d-3(d) promulgated by the SEC under the Exchange Act. The
percentage of shares beneficially owned prior to the offering is based on
77,243,580 shares of our common stock actually outstanding as of May 14,
2015.</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 noWrap align=left >&nbsp; </TD>
    <TD noWrap align=left width="13%">&nbsp; </TD>
    <TD noWrap align=center width="13%"><B>Percentage of</B> </TD>
    <TD noWrap align=left width="13%">&nbsp; </TD>
    <TD noWrap align=center width="13%"><B>Number</B> </TD>
    <TD noWrap align=center width="13%"><B>Percentage of</B> </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left >&nbsp; </TD>
    <TD noWrap align=left width="13%">&nbsp; </TD>
    <TD noWrap align=center width="13%"><B>Outstanding</B> </TD>
    <TD noWrap align=left width="13%">&nbsp; </TD>
    <TD noWrap align=center width="13%"><B>Of</B> </TD>
    <TD noWrap align=center width="13%"><B>Outstanding</B> </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left >&nbsp; </TD>
    <TD noWrap align=center width="13%"><B>Shares</B> </TD>
    <TD noWrap align=center width="13%"><B>Shares</B> </TD>
    <TD noWrap align=left width="13%">&nbsp; </TD>
    <TD noWrap align=center width="13%"><B>Shares</B> </TD>
    <TD noWrap align=center width="13%"><B>Shares</B> </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left >&nbsp; </TD>
    <TD noWrap align=center width="13%"><B>Beneficially</B> </TD>
    <TD noWrap align=center width="13%"><B>Beneficially</B> </TD>
    <TD noWrap align=left width="13%">&nbsp; </TD>
    <TD noWrap align=center width="13%"><B>Beneficially</B> </TD>
    <TD noWrap align=center width="13%"><B>Beneficially</B> </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left >&nbsp; </TD>
    <TD noWrap align=center width="13%"><B>Owned Before</B> </TD>
    <TD noWrap align=center width="13%"><B>Owned Before</B> </TD>
    <TD noWrap align=center width="13%"><B>Shares to be Sold in</B> </TD>
    <TD noWrap align=center width="13%"><B>Owned After</B> </TD>
    <TD noWrap align=center width="13%"><B>Owned After</B> </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=center
    ><B>Selling Stockholder</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=center
      width="13%"><B>this Offering</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=center
      width="13%"><B>this Offering</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=center
      width="13%"><B>this Offering<sup>(3) </sup> </B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=center
      width="13%"><B>this Offering<sup>(3)</sup></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=center
      width="13%"><B>this Offering<sup>(3)</sup></B></TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff >Lincoln Park Capital Fund, LLC<sup>(1) </sup> </TD>
    <TD align=center width="13%" bgColor=#e6efff>1,000,000<sup>(2) </sup> &nbsp;</TD>
    <TD align=center width="13%" bgColor=#e6efff>1.29<sup>(2) </sup> &nbsp;</TD>
    <TD align=center width="13%" bgColor=#e6efff>9,975,267 </TD>
    <TD align=center width="13%" bgColor=#e6efff>---- </TD>
    <TD align=center width="13%" bgColor=#e6efff>* </TD></TR></TABLE></DIV>
<P align=justify><B>* Less than 1%</B></P>
<P align=justify><sup>(1)</sup> Josh Scheinfeld and Jonathan Cope, the principals of
Lincoln Park, are deemed to be beneficial owners of all of the shares of common
stock owned by Lincoln Park. Messrs. Scheinfeld and Cope have shared voting and
disposition power over the shares being offered under this Prospectus.<BR><sup>(2)</sup>
Includes 500,000 shares of common stock and 500,000 shares of common stock
underlying warrants previously acquired by Lincoln Park.<BR><sup>(3)</sup> Assumes issuance
of the maximum 9,975,267 shares being registered hereby, which reflects the
591,858 shares already issued and the issuance of an additional 9,250,000 shares
under the purchase agreement and 133,409 additional commitment shares. None of
the 500,000 shares of common stock and 500,000 shares of common stock underlying
warrants that were previously acquired by Lincoln Park are included in this
offering. </P>
<P align=center>23 </P>
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<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, 2014 and the last fiscal quarter ended March 31, 2015,
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 clinical stage biopharmaceutical company engaged in
the development of drug candidates to treat Alzheimer&#146;s disease, other central
nervous system (CNS) diseases, and various types of cancer. Our lead compounds
ANAVEX 2-73 and ANAVEX PLUS, a combination of ANAVEX 2-73 with donepezil
(Aricept&#174;) are being developed to treat Alzheimer&#146;s disease and potentially
other central nervous system (CNS) diseases.</P>
<P align=justify>In December 2014 a Phase 2a clinical trial was initiated for
ANAVEX 2-73, which is being evaluated for the treatment of Alzheimer&#146;s disease.
The randomized trial is designed to assess the safety and exploratory efficacy
of ANAVEX 2-73 alone as well as in combination with donepezil (ANAVEX PLUS) in
patients with mild to moderate Alzheimer&#146;s disease. ANAVEX 2-73 targets sigma-1
and muscarinic receptors, which have been shown in preclinical studies to reduce
stress levels in the brain and to reverse the pathological hallmarks observed in
Alzheimer&#146;s disease. ANAVEX 2-73 showed no serious adverse events in a
previously performed Phase 1 study. In pre-clinical studies ANAVEX 2-73
demonstrated anti-amnesic and neuroprotective properties in various animal
models including the transgenic mouse model Tg2576. </P>
<P align=justify>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>24 </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>As well, recent preclinical data validates ANAVEX 2-73 as a
prospective platform drug for other neurodegenerative diseases beyond
Alzheimer&#146;s, most specifically epilepsy. The data demonstrates significant
improvement in the reduction of seizures relative to three generations of
epilepsy drugs currently on the market, as well as significant synergy with each
of these drugs.</P>
<P align=justify><B>ANAVEX PLUS</B> </P>
<P align=justify>ANAVEX PLUS, a combination of ANAVEX 2-73 with donepezil
(Aricept&#174;) is a potential novel combination drug for Alzheimer&#146;s disease.
Aricept&#174; (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=center>25 </P>
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<P align=justify><B>ANAVEX 3-71 </B></P>
<P align=justify>ANAVEX 3-71, previously named AF710B is a preclinical drug
candidate with a novel mechanism of action via sigma-1 receptor activation and
M1 muscarinic allosteric modulation, which has shown to enhance neuroprotection
and cognition in Alzheimer's disease. ANAVEX 3-71 is a CNS-penetrable
mono-therapy that bridges treatment of both cognitive impairments with disease
modifications. It is highly effective in very small doses against the major
Alzheimer's hallmarks in transgenic (3xTg-AD) mice, including cognitive
deficits, amyloid and tau pathologies, and also has beneficial effects on
inflammation and mitochondrial dysfunctions. ANAVEX 3-71 indicates extensive
therapeutic advantages in Alzheimer's and other protein-aggregation-related
diseases given its ability to enhance neuroprotection and cognition via sigma-1
receptor activation and M1 muscarinic allosteric modulation. </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=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 width="5%" align=center>&nbsp;</TD>
    <TD width="5%" align=left>&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>Alzheimer&#146;s disease &#150; In 2014, an estimated 5.2 million
      Americans were suffering from Alzheimer&#146;s disease. The Alzheimer&#146;s
      Association&#174; 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. </P></TD></TR>
  <TR>
    <TD align=center>&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD width="90%">
      <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD align=center>&nbsp;</TD>
    <TD align=left>&#149; </TD>
    <TD align=left width="90%">
      <P 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. </P></TD></TR></TABLE>
<P align=center>26 </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 width="5%" align=center>&nbsp;</TD>
    <TD width="5%" align=left>&#149; </TD>
    <TD align=left width="90%">
      <P 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. </P></TD></TR>
  <TR>
    <TD align=center>&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD width="90%">
  <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD align=center>&nbsp;</TD>
    <TD align=left>&#149; </TD>
    <TD align=left width="90%">
      <P 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.      </P></TD></TR>
  <TR>
    <TD align=center>&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD width="90%">
  <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD align=center>&nbsp;</TD>
    <TD align=left>&#149; </TD>
    <TD align=left width="90%">
      <P 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.      </P></TD></TR>
  <TR>
    <TD align=center>&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD width="90%">
  <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD align=center>&nbsp;</TD>
    <TD align=left>&#149; </TD>
    <TD align=left width="90%">
      <P 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.      </P></TD></TR>
  <TR>
    <TD align=center>&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD width="90%">
  <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD align=center>&nbsp;</TD>
    <TD align=left>&#149; </TD>
    <TD align=left width="90%">
      <P 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.</P></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, 2014, 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 width="5%" align=center>&nbsp;</TD>
    <TD width="5%" align=left>&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>On October 22, 2014, we entered into a Securities
      Purchase Agreement (the &#147;Subscription Agreement&#148;) with Lincoln Park
      Capital Fund, LLC, a long time investor of our company, for an equity
      investment of $500,000 at a price of $0.25 per unit. Pursuant to the terms
      of the Subscription Agreement, we agreed to sell, and Lincoln Park agreed
      to purchase, 2,000,000 shares of common stock. In addition, we agreed to
      issue to Lincoln Park an aggregate of 4,000,000 stock purchase warrants,
      of which 2,000,000 are exercisable at $0.30 per share and 2,000,000 are
      exercisable at $0.42 per share, each for a period of five years, subject
      to adjustment for stock splits, combinations, and reclassification events.      </P></TD></TR>
  <TR>
    <TD align=center>&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD width="90%">
  <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD align=center>&nbsp;</TD>
    <TD align=left>&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>Effective as of December 12, 2014, our Company&#146;s common
      stock began being quoted on the OTC Market Group&#146;s OTCQX tier under the
      Company&#146;s existing stock ticker &#147;AVXL&#148;. The OTCQX is the highest tier of
      the OTC Market Group&#146;s trading marketplace. </P></TD></TR>
  <TR>
    <TD align=center>&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD width="90%">
  <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD align=center>&nbsp;</TD>
    <TD align=left>&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>On January 12, 2015, we announced dosing of the first
      patient in the Phase 2a clinical trial of our proprietary compound, ANAVEX
      2-73 and ANAVEX PLUS, which are being developed as an oral therapy and
      oral drug combination for the potential treatment of Alzheimer's disease.
      The approved Phase 2a clinical trial is the first study of ANAVEX 2-73 in
      Alzheimer&#146;s patients. </P></TD></TR></TABLE>
<P align=center>27 </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 width="5%" align=center>&nbsp;</TD>
    <TD width="5%" align=left>&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>On January 13, 2015, our Company&#146;s president and Chief
      Executive Officer, Christopher Missling, PhD presented at the 8<SUP>th
      </SUP>annual OneMedForum conference in San Francisco. OneMedForum is
      recognized as a leading annual event showcasing promising, innovative
      growth companies in healthcare and life sciences and we provided an
      overview of our Company and its progress of the Phase 2a clinical trial
      evaluating ANAVEX 2-73 and ANAVEX PLUS. </P></TD></TR>
  <TR>
    <TD align=center>&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD width="90%">
      <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD align=center>&nbsp;</TD>
    <TD align=left>&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>On February 9, 2015, we confirmed positive preclinical
      data for our lead drug candidate ANAVEX 2-73 for the potential treatment
      of epilepsy, validating it also as a prospective platform drug for the
      treatment of other neurodegenerative diseases beyond Alzheimer&#146;s. The data
      demonstrates significant improvement in the reduction of seizures relative
      to three generations of epilepsy drugs currently on the market, as well as
      significant synergy with each of these drugs. </P></TD></TR>
  <TR>
    <TD align=center>&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD width="90%">
      <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD align=center>&nbsp;</TD>
    <TD align=left>&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>On March 5, 2015 we announced the appointment of Corinne
      Lasmezas, DVM, PhD, to the Company&#146;s scientific advisory board. A
      professor at The Scripps Research Institute for the past 10 years, Dr.
      Lasmezas is an internationally recognized expert in the field of
      neurogenerative disease. </P></TD></TR>
  <TR>
    <TD align=center>&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD width="90%">
      <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD align=center>&nbsp;</TD>
    <TD align=left>&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>On March 11, 2015 our Company&#146;s president and Chief
      Executive Officer, Christopher Missling, PhD presented at the 27<SUP>th
      </SUP>annual ROTH conference Dana Point, California. The presentation
      included an overview of our advancing clinical development programs,
      including the current Phase 2a clinical trial evaluating ANAVEX 2-73 and
      ANAVEX PLUS in Alzheimer&#146;s patients. </P></TD></TR>
  <TR>
    <TD align=center>&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD width="90%">
      <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD align=center>&nbsp;</TD>
    <TD align=left>&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>On March 12, 2015, we announced the appointment of
      Jacqueline French, MD, FAAN, to the Company's Scientific Advisory Board.
      Dr. French is an award-winning, internationally recognized expert on
      epilepsy, new therapeutic interventions and clinical trial methodology.      </P></TD></TR>
  <TR>
    <TD align=center>&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD width="90%">
      <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD align=center>&nbsp;</TD>
    <TD align=left>&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>On March 23, 2015, we unveiled new promising preclinical
      data for both ANAVEX 2-73 and ANAVEX 3- 71 (formerly AF710B) in two
      separate presentations at the 12th International Conference on Alzheimer's
      and Parkinson's Diseases and Related Neurological Disorders in Nice,
      France. </P></TD></TR>
  <TR>
    <TD align=center>&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD width="90%">
      <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD align=center>&nbsp;</TD>
    <TD align=left>&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>On March 26, 2015, pursuant to a special meeting of
      stockholders, our stockholders approved an amendment to the Company&#146;s
      Articles of Incorporation to increase the Company&#146;s authorized common
      stock from 150,000,000 to 400,000,000 shares, which amendment became
      effective upon the filing of a Certificate of Amendment with the Secretary
      of State of Nevada on March 27, 2015. </P></TD></TR></TABLE>
<P align=justify><B>RESULTS OF OPERATIONS - FISCAL YEAR ENDED SEPTEMBER 30,
2014</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>Operating Expenses</I></B></P>
<P align=justify>Our operating expenses for the year ended September 30, 2014
were $2,968,975, which represents an increase of $831,608 compared to $2,137,367
for the year ended September 30, 2013. The increase was mainly attributable to
(i) an increase in investor relations expenses and other professional fees and
bonus payment as a result of our capital raising efforts related to a
$10,000,000 convertible Debenture financing, which resulted in one-time
compensation charges in the aggregate amount of $1,010,000, including a non-cash
charge of $610,000 for the vesting of common stock under our President&#146;s
employment agreement and (ii) an increase in research and development activities
in the current year, including clinical trial work, as a result of funding
secured. </P>
<P align=center>28 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_34></A>
<P align=justify><B><I>Other income (expenses) </I></B></P>
<P align=justify>The aggregate amount in the other income (expense) for the year
ended September 30, 2014, amounted to $(8,399,378) as compared to $(1,562,679)
for the comparable year ended September 30, 2013. The largest single increase in
this loss was as a result of certain non-cash, non-operational accounting
charges related to certain amendments to the Debentures.</P>
<P align=justify>Generally accepted accounting principles in the United States
(US GAAP) accounting rules deemed the amendments to the terms of the Debentures
to require extinguishment accounting to be applied to them. This resulted in a
net non-cash, non-operational accounting charge being recorded in our
consolidated statement of operations of $8,099,137, net of the recovery of a
finance charge of $459,912, being the total accrued liquidating damages owed to
the holders of the convertible debentures at the date of the amendment, though
these amounts were satisfied through the modification of the conversion price.
</P>
<P align=justify>Further, we did not have a sufficient number of authorized and
unissued shares of common stock available to satisfy the additional shares that
could be issued under the terms of the Debentures. As a result, US GAAP
accounting rules require that we account for such shares underlying the
Debentures as derivative liabilities. It is the requirement of these accounting
rules, that we re-measure derivative financial instruments to their respective
fair values at each reporting period, with the changes in fair value being
reported as a non-operating item on the consolidated statement of operations.
Consequently, we were required to record non-cash, non-operational gains related
to the change in the calculated value of derivative liabilities of $2,955,000
for the year ended September 30, 2014. </P>
<P align=justify>On March 26, 2015, the Company received stockholder approval to
approve an amendment to the Company&#146;s articles of incorporation to increase the
Company&#146;s authorized common stock from 150,000,000 to 400,000,000 shares, which
was sufficient to fully settle all the outstanding equity contracts.
Consequently, these instruments previously accounted for as liabilities under
ASC 815 are no longer required to be accounted for as liabilities. Pursuant to
the guidance of ASC 815, the Company reclassified the fair value of these
instruments on the date of this triggering event into equity, with the change in
fair value up to the date of modification being recorded on the consolidated
statement of operations as other income.</P>
<P align=justify>These accounting charges did not result in an actual cash
impact on our Company. Removing the effect of all financing related accelerated
charges and adjustments to our consolidated statement of operations, results in
a net loss of $(2,760,714), or $(0.09) per share, as shown below: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD noWrap align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="10%">As Reported </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="10%">Net impact </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="10%">Adjusted </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left>Operating expenses </TD>
    <TD noWrap align=left width="1%" >&nbsp;</TD>
    <TD noWrap align=left width="10%">&nbsp; </TD>
    <TD noWrap align=left width="2%" >&nbsp;</TD>
    <TD noWrap align=left width="1%" >&nbsp;</TD>
    <TD noWrap align=left width="10%">&nbsp; </TD>
    <TD noWrap align=left width="2%" >&nbsp;</TD>
    <TD noWrap align=left width="1%" >&nbsp;</TD>
    <TD noWrap align=left width="10%">&nbsp; </TD>
    <TD noWrap align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>General and administrative </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;2,236,580 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;2,236,580 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Research and development </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%">732,395 </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=left width="10%">&nbsp;
    </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="10%">732,395 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Total operating expenses </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(2,968,975</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" 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="10%" bgColor=#e6efff>(2,968,975</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>Other income (expenses) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Interest and finance expenses, net </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(7,089</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(7,089</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>Gain on settlement of accounts payable </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">199,655 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">199,655 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Financing related charges and adjustments
    </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(8,624,986</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>8,607,639 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(17,347</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>Foreign exchange loss </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">33,042 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">33,042 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Total other income (expenses), net </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="10%"
    bgColor=#e6efff>(8,399,378</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" 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="10%"
    bgColor=#e6efff>8,607,639 </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="10%"
    bgColor=#e6efff>208,261 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Net loss and comprehensive loss for the period </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right
      width="10%">&nbsp;(11,368,353</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right
      width="10%">&nbsp;8,607,639 </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%"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right
      width="10%">&nbsp;(2,760,714</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
    >) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Loss per share - diluted </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>&nbsp;(0.30</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" 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=left width="10%"
    bgColor=#e6efff>&nbsp; </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>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>&nbsp;(0.09</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>Net loss and comprehensive loss - GAAP basis </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="10%">&nbsp;(11,368,353</TD>
    <TD align=left width="2%" >) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Add back: </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" 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="10%" 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="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Non-cash financing related charged and adjustments </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </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="10%">8,607,639 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Net loss and comprehensive loss - Non-GAAP
      basis </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" 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="10%" bgColor=#e6efff>&nbsp; </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="10%"
    bgColor=#e6efff>&nbsp;(2,760,714</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>) </TD></TR></TABLE>
<P align=center>29 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_35></A>
<P align=justify><B><I>Liquidity and Capital Resources</I></B></P>
<P align=justify><B><I>Working Capital </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 noWrap align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="12%"><B>2014</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="12%"><B>2013</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left bgColor=#e6efff>Current Assets </TD>
    <TD noWrap align=left width="1%" bgColor=#e6efff>$</TD>
    <TD noWrap align=right width="12%" bgColor=#e6efff>&nbsp;7,351,255 </TD>
    <TD noWrap align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#e6efff>$</TD>
    <TD noWrap align=right width="12%" bgColor=#e6efff>&nbsp;393,449 </TD>
    <TD noWrap align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Current Liabilities </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%">1,441,149 </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="12%">1,952,660 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Working Capital (Deficiency) </TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>&nbsp;5,910,106 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>&nbsp;(1,559,211</TD>
    <TD align=left width="2%" bgColor=#e6efff>) </TD></TR></TABLE>
<P align=justify>As of September 30, 2014, we had $7,262,138 in cash, an
increase of $6,917,064 from September 30, 2013. The principal reason for this
increase is due to cash received in respect of the issuance of the Debentures in
the aggregate principal amount of $10,000,000 that were issued in the current
year. 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 2-73 and
ANAVEX PLUS, and to perform work necessary to prepare for further clinical
development. </P>
<P align=justify><B>Cash Flows</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 noWrap align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="12%"><B>2014</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="12%"><B>2013</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left bgColor=#e6efff>Cash flows used in operating
      activities </TD>
    <TD noWrap align=left width="1%" bgColor=#e6efff>$</TD>
    <TD noWrap align=right width="12%" bgColor=#e6efff>&nbsp;(2,659,379</TD>
    <TD noWrap align=left width="2%" bgColor=#e6efff>) </TD>
    <TD noWrap align=left width="1%" bgColor=#e6efff>$</TD>
    <TD noWrap align=right width="12%" bgColor=#e6efff>&nbsp;(777,573</TD>
    <TD noWrap align=left width="2%" bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>Cash flows used in investing activities </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%">(3,015</TD>
    <TD align=left width="2%">) </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%">- </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Cash flows provided by financing activities
    </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>9,579,458 </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="12%"
    bgColor=#e6efff>1,111,285 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Increase in cash </TD>
    <TD align=left width="1%">$</TD>
    <TD align=right width="12%">&nbsp;6,917,064 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">$</TD>
    <TD align=right width="12%">&nbsp;333,712 </TD>
    <TD align=left width="2%">&nbsp;</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 year ended
September 30, 2014 was $2,659,379 compared to $777,573 used in operating
activities for the comparative year ended September 30, 2013. The increase in
cash used in operating activities was primarily as a result of the increased net
loss for the current period as a result of an increase in corporate activities
and research and development following the Debenture financing in March, 2014.
</P>
<P align=justify><I>Cash used in investing activities</I></P>
<P align=justify>Cash used in investing activities was $3,015 in the current
year ended September 30, 2014. This is as a result of small equipment purchases
in the current year.</P>
<P align=justify><I>Cash flow provided by financing activities </I></P>
<P align=justify>Our cash provided by financing activities for the year ended
September 30, 2014 was $9,579,458, mostly attributable to cash received from the
issuance of the Debentures in the aggregate principal amount of $10,000,000,
less related fees and expenses of $788,712 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>Other Financing</I> below).</P>
<P align=justify>In the comparative year ended September 30, 2013, we had cash
inflows of $1,111,285 from activities related to the issuance of short term debt
and a private placement equity financings. </P>
<P align=justify><B>RESULTS OF OPERATIONS - THREE AND SIX MONTHS ENDED MARCH 31,
2015 </B></P>
<P align=justify><B><I>Revenue</I></B><B> </B></P>
<P align=justify>We have not earned any revenues since our inception on January
23, 2004. We 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=center>30 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_36></A>
<P align=justify><B><I>Operating Expenses</I></B><B> </B></P>
<P align=justify><B>Three months ended March 31, 2015 compared to three months
ended March 31, 2014 </B></P>
<P align=justify>Our operating expenses for the three months ended March 31,
2015 were $858,339, which represents a decrease of $162,828, or 16% compared to
$1,021,167 for the three month period ended March 31, 2014. The decrease was
mainly attributable to the one-time non-cash compensation charge of $610,000
during the comparative three month period ended March 31, 2014, relating to the
vesting of common stock under our President&#146;s employment agreement, pursuant to
performance conditions met during that period. This was offset by an increase in
research and development expenses in the current period, mostly related to our
Phase 2a clinical trial for ANAVEX 2-73, which commenced in December, 2014.</P>
<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, 2015, amounted to $(866,520) as compared to
$2,307 for the comparable three month period ended March 31, 2014. The largest
decrease was as a result of a financing and related charges in respect of
convertible debt and stock purchase warrants being accounted for as derivative
liabilities in accordance with US GAAP. During the three months ended March 31,
2015, the conditions which triggered this derivative liability accounting under
US GAAP were rectified and as such, any remaining derivative liability balance
was reclassified to equity. </P>
<P align=justify><B>Six months ended March 31, 2015 compared to six months ended
March 31, 2014 </B></P>
<P align=justify>Our operating expenses for the six months ended March 31, 2015
were $1,629,017, which represents an increase of $298,242, or 22.4% compared to
$1,330,775 for the six month period ended March 31, 2014. The increase was
mainly attributable to an increase in research and development expenses related
to our Phase 2a clinical trial for ANAVEX 2-73, which commenced in December,
2014. We expect our research and development expenses will continue to increase
over the remaining quarters in the current fiscal year as a result of this
clinical trial and other auxiliary research and development activities. We
continue to target potential research partners to further advance our pipeline
compounds.</P>
<P align=justify><I>Other income </I></P>
<P align=justify>The aggregate amount in the other income (expense) for the six
month period ended March 31, 2015, amounted to $(882,560) as compared to
$670,552 for the comparable six month period ended March 31, 2014. The decrease
in other expenses was mainly as a result of a decrease in financing related
income, related to changes in the calculated fair value over the period of
embedded conversion features and stock purchase warrants being accounted for as
derivative liabilities in accordance with US GAAP. </P>
<P align=justify><B><I>Liquidity and Capital Resources</I></B> </P>
<P align=justify><I>Working Capital </I></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD noWrap align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="12%"><B>March 31, 2015</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="12%"><B>September 30, 2014</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Current Assets </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>&nbsp;6,362,628 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>&nbsp;7,351,255 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Current Liabilities </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%">1,528,351 </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="12%">1,441,149 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Working Capital </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>&nbsp;4,834,277 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>&nbsp;5,910,106 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR></TABLE>
<P align=center>31 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_37></A>
<P align=justify>As of March 31, 2015, we had $6,310,643 in cash, a decrease of
$951,495 from September 30, 2014. The principal reason for this decrease is due
to cash used in operations and for the advancement of clinical trial work,
offset by funds received during the period in respect of a private placement. We
intend to use the majority of our capital resources to complete the next
clinical trial for ANAVEX 2-73 and 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 noWrap align=left>&nbsp; </TD>
    <TD noWrap align=left width="1%" >&nbsp;</TD>
    <TD noWrap align=center width="27%" colSpan=4><B>Six months ended March
      31,</B> </TD>
    <TD noWrap align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left>&nbsp; </TD>
    <TD noWrap align=left width="1%" >&nbsp;</TD>
    <TD noWrap align=right width="12%"><B>2015</B> </TD>
    <TD noWrap align=left width="2%" >&nbsp;</TD>
    <TD noWrap align=left width="1%" >&nbsp;</TD>
    <TD noWrap align=right width="12%"><B>2014</B> </TD>
    <TD noWrap align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Cash flows used in operating activities </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>&nbsp;(1,363,351</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>&nbsp;(782,519</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>Cash flows used in investing activities </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%">(2,327</TD>
    <TD align=left width="2%" >) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Cash flows from financing activities </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>411,856 </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>9,633,330 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Decrease (Increase) in cash </TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="12%">&nbsp;(951,495</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="12%">&nbsp;8,848,484 </TD>
    <TD align=left width="2%" >&nbsp;</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 months ended
March 31, 2015 was $1,363,351 compared to $782,519 used in operating activities
for the comparative period ended March 31, 2014. The increase in cash used in
operating activities was primarily as a result of the increased research and
development activities as a result of the commencement of clinical trial
work.</P>
<P align=justify><I>Cash used in investing activities</I> </P>
<P align=justify>Cash used in investing activities was $Nil in the current
period ended March 31, 2015 compared to $2,327 in the comparative period. This
is as a result of a small equipment purchase in the comparative 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 period ended
March 31, 2015 was $411,856, mostly attributable to cash received from the
issuance of common shares under a private placement subscription agreement. </P>
<P align=justify>In the comparative period ended March 31, 2014, we had cash
inflows of $9,633,330 primarily from the issuance of Senior Secured Convertible
debentures in the comparative period.</P>
<P align=justify><B><I>Other Financing</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.</P>
<P align=justify>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=center>32 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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<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>We expect that we will be able to continue to fund our
operations through existing cash on hand and through equity and debt financing
in the future. 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><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=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 and derivative liabilities. </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 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 and
trademarks will ever be successfully commercialized. Due to these risks and
uncertainties, we expense the acquisition of patents 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=center>33 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_39></A>
<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><I>Derivative Liabilities</I></P>
<P align=justify>From time to time, we may issue warrants and convertible
promissory notes with embedded conversion options which, dependent on their
specific contractual terms or other conditions, 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
because these instruments are not quoted on an active market. </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=justify><B><I>Recent Accounting Pronouncements Not Yet Adopted</I></B>
</P>
<P align=justify>In June 2014, the FASB issued ASU No. 2014-12, Accounting for
Share-Based Payments When the Terms of an Award Provide That a Performance
Target Could Be Achieved after the Requisite Service Period ("ASU 2014-12"). ASU
2014-12 requires that a performance target that affects vesting, and that could
be achieved after the requisite service period, be treated as a performance
condition. As such, the performance target should not be reflected in estimating
the grant date fair value of the award. This update further clarifies that
compensation cost should be recognized in the period in which it becomes
probable that the performance target will be achieved and should represent the
compensation cost attributable to the period(s) for which the requisite service
has already been rendered. The amendments in this ASU are effective for annual
periods and interim periods within those annual periods beginning after December
15, 2015. We are currently evaluating the impact this guidance on our financial
condition, results of operations and cash flows.</P>
<P align=justify>In August 2014, the FASB issued ASU No. 2014-15, Disclosure of
Uncertainties about an Entity&#146;s Ability to Continue as a Going Concern (&#147;ASU
2014-15&#148;). ASU 2014-15 will explicitly require management to assess an entity&#146;s
ability to continue as a going concern, and to provide related footnote
disclosure in certain circumstances. The new standard will be effective for all
entities in the first annual period ending after December 15, 2016. We are
currently evaluating the impact this guidance on our financial condition,
results of operations and cash flows.</P>
<P align=center>34 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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<P align=justify>On May 28, 2014, the FASB and the International Accounting
Standards Board (IASB) issued a converged standard on revenue recognition from
contracts with customers, ASU 2014-09 (Topic 606 and IFRS 15). This standard
will supersede nearly all existing revenue recognition guidance. ASU 2014-09 is
effective for fiscal years, and interim periods within those years, beginning
after December 15, 2016. We are currently evaluating the impact this guidance
will have on our financial condition, results of operations and cash flows.</P>
<P align=justify>Other than noted above, we do not expect the adoption of
recently issued accounting pronouncements to have a significant impact on our
results of operations, financial position or cash flow.</P>
<P align=center>35 </P>
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<P align=center><B>BUSINESS</B></P>
<P align=justify><B><I>Our Current Business</I></B></P>
<P align=justify>We are a clinical stage biopharmaceutical company engaged in
the development of drug candidates to treat Alzheimer&#146;s disease, other central
nervous system (CNS) diseases, and various types of cancer. 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 December 2014 a Phase 2a clinical trial was initiated for
ANAVEX 2-73, which is being evaluated for the treatment of Alzheimer&#146;s disease.
The randomized trial is designed to assess the safety and exploratory efficacy
of ANAVEX 2-73 alone as well as in combination with donepezil (ANAVEX PLUS) in
patients with mild to moderate Alzheimer&#146;s disease. ANAVEX 2-73 targets sigma-1
and muscarinic receptors, which have been shown in preclinical studies to reduce
stress levels in the brain and to reverse the pathological hallmarks observed in
Alzheimer&#146;s disease. ANAVEX 2-73 showed no serious adverse events in a
previously performed Phase 1 study. In pre-clinical studies, ANAVEX 2-73
demonstrated anti-amnesic and neuroprotective properties in various animal
models including the transgenic mouse model Tg2576. </P>
<P align=justify>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 clinical 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=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=center>36 </P>
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<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>As well, recent preclinical data validates ANAVEX 2-73 as a
prospective platform drug for other neurodegenerative diseases beyond
Alzheimer&#146;s, most specifically epilepsy. The data demonstrates significant
improvement in the reduction of seizures relative to three generations of
epilepsy drugs currently on the market, as well as significant synergy with each
of these drugs. </P>
<P align=justify><B>ANAVEX PLUS</B> </P>
<P align=justify>ANAVEX PLUS, a combination of ANAVEX 2-73 with donepezil
(Aricept&#174;) is a potential novel combination drug for Alzheimer&#146;s disease.
Aricept&#174; (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 3-71 </B></P>
<P align=justify>ANAVEX 3-71, previously named AF710B is a preclinical drug
candidate with a novel mechanism of action via sigma-1 receptor activation and
M1 muscarinic allosteric modulation, which has shown to enhance neuroprotection
and cognition in Alzheimer's disease. ANAVEX 3-71 is a CNS-penetrable
mono-therapy that bridges treatment of both cognitive impairments with disease
modifications. It is highly effective in very small doses against the major
Alzheimer's hallmarks in transgenic (3xTg-AD) mice, including cognitive
deficits, amyloid and tau pathologies, and also has beneficial effects on
inflammation and mitochondrial dysfunctions. ANAVEX 3-71 indicates extensive
therapeutic advantages in Alzheimer's and other protein-aggregation-related
diseases given its ability to enhance neuroprotection and cognition via sigma-1
receptor activation and M1 muscarinic allosteric modulation. </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=center>37 </P>
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<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>&#149; </TD>
    <TD align=left width="95%">
      <P align=justify>Alzheimer&#146;s disease &#150; In 2014, an estimated 5.2 million
      Americans were suffering from Alzheimer&#146;s disease. The Alzheimer&#146;s
      Association&#174; 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. </P></TD></TR>
  <TR>
    <TD align=center>&nbsp; </TD>
    <TD width="95%">
      <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD align=center>&#149; </TD>
    <TD align=left width="95%">
      <P 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. </P></TD></TR>
  <TR>
    <TD align=center>&nbsp; </TD>
    <TD width="95%">
      <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD align=center>&#149; </TD>
    <TD align=left width="95%">
      <P 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. </P></TD></TR>
  <TR>
    <TD align=center>&nbsp; </TD>
    <TD width="95%">
      <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD align=center>&#149; </TD>
    <TD align=left width="95%">
      <P 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.
      </P></TD></TR>
  <TR>
    <TD align=center>&nbsp; </TD>
    <TD width="95%">
      <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD align=center>&#149; </TD>
    <TD align=left width="95%">
      <P 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.
      </P></TD></TR></TABLE>
<P align=center>38 </P>
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    <TD align=center>&#149; </TD>
    <TD align=left width="95%">
      <P 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.
      </P></TD></TR>
  <TR vAlign=top>
    <TD align=center>&nbsp;</TD>
    <TD align=left width="95%">&nbsp;
      </TD></TR>
  <TR vAlign=top>
    <TD align=center>&#149; </TD>
    <TD align=left width="95%">
      <P 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.
</P></TD></TR></TABLE>
<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), Actavis Plc. (NYSE:ACT), 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>Anavex holds one issued U.S. patent and five U.S. patent
applications with various international counterpart applications. The most
recent U.S. patent application was filed October 20, 2014. Anavex is awaiting
formal patent documents from a co-inventor as to two applications, and seeking
one assignment from the same co-inventor to an application assigned to Anavex by
another co-inventor. 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.
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=center>39 </P>
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<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=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>
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  <TR vAlign=top>
    <TD align=center>&#149; </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>&#149; </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>&#149; </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>&#149; </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=center>40 </P>
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<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
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=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. See &#147;Financial Statements and
Supplementary Data&#148; of our Annual Report for costs and expenses related to
research and development, and other financial information for fiscal years 2014
and 2013.</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, Dr. Norman Relkin, Ph.D., Ph.D., Tangui Nicolas Maurice, Ph.D., Abraham
Fisher, 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 four (4) full-time employees, and we retain
several independent contractors on an as-needed basis. We believe that we have
good relations with our employees. </P>
<P align=center>41 </P>
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<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><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 style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left>Name </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left
      width="25%">Position </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left
      width="25%">Age </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left
      width="25%">Date first appointed </TD></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=5>Christopher Missling, PhD <BR><BR><BR><BR></TD>
    <TD align=left width="25%" rowSpan=5>Director, President, <BR>Chief
      Executive <BR>Officer, Chief Financial <BR>Officer, Secretary,
      <BR>Treasurer </TD>
    <TD align=left width="25%" rowSpan=5>49 <BR><BR><BR><BR></TD>
    <TD align=left width="25%" rowSpan=5>July 5, 2013 <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 style="BORDER-BOTTOM: #000000 1px solid" align=left>Elliot Favus M.D.
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Director </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">39 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">May 7,
    2014 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Bernd Metzner </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Director </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">44 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">May 7,
    2014 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Athanasios Skarpelos </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Director </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">47 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">January 9, 2013 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Steffen Thomas, PhD </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Director </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">49 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">June 15,
    2015 </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 and WHU Otto Beisheim 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=center>42 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
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<P align=justify><U>Bernd Metzner, PhD</U>. Bernd Metzner is currently Chief
Financial Officer of the Doehler Group, a global producer and provider of
technology-based natural ingredients for the food and beverage industry with
sales activities in more than 130 countries. Previously, he was Chief
Administration Officer and member of the Board of Management of Bayer Schering
Pharma AG, the pharmaceutical division of $100+ billion market cap company Bayer
AG. In this position, Dr. Metzner had worldwide financial responsibility for the
Bayer Pharma Group. During his almost 10-years with Bayer AG, Dr. 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, a
specialty chemicals group. Dr. Metzner started his career at the law firm Flick
Gocke Schaumburg and has a degree in business administration from the University
of Siegen. After obtaining his doctorate, he became a chartered accountant. </P>
<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><U>Steffen Thomas, PhD</U>. Steffen Thomas, PhD, is a patent
attorney at Epping Hermann Fischer, an intellectual property law firm in Europe.
Previously, he has worked for Takeda Pharmaceutical Company, as an in-house
patent attorney in its legal department and for Nycomed Pharma until it was
acquired by Takeda in 2011. Dr. Thomas&#146; legal practice covers drafting of patent
applications, prosecuting patent applications before national and international
patent offices, defending and challenging patents in opposition, appeal, and
nullity proceedings, enforcing patents before the infringement courts, and
preparing opinions on patentability and infringement in the technical field of
chemistry. Dr. Thomas has particular expertise in small molecule
pharmaceuticals. Dr. Thomas has a MS and PhD from the University of Munich in
Chemistry. </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%">&nbsp;</TD>
    <TD vAlign=top align=left 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 vAlign=top align=center width="5%">&nbsp;</TD>
    <TD vAlign=top align=left 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 vAlign=top align=center width="5%">&nbsp;</TD>
    <TD vAlign=top align=left 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 vAlign=top align=center width="5%">&nbsp;</TD>
    <TD vAlign=top align=left 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 vAlign=top align=center width="5%">&nbsp;</TD>
    <TD vAlign=top align=left 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></TABLE>
<P align=center>43 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_49></A><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%">&nbsp;</TD>
    <TD vAlign=top align=left 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, 2014, all filing requirements
applicable to our officers, directors and greater than 10% percent beneficial
owners were complied. </P>
<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>Except for Dr. Metzner, we do not deem any 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=center>44 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>

<!--$$/page=--><A name=page_50></A>
<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 width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">a) </TD>
    <TD>
      <P align=justify>our principal executive officers;</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD vAlign=top 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, 2014 who had total compensation exceeding
      $100,000; and</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD vAlign=top 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, 2014 and
      2013, are set out in the following summary compensation
  table:</P></TD></TR></TABLE><BR>
<DIV>
<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%" bgcolor="#FFFFFF" >&nbsp;</TD>
    <TD align=left noWrap bgcolor="#FFFFFF">&nbsp; </TD>
    <TD width="9%" align=left noWrap bgcolor="#FFFFFF">&nbsp; </TD>
    <TD width="9%" align=left noWrap bgcolor="#FFFFFF">&nbsp; </TD>
    <TD width="9%" align=left noWrap bgcolor="#FFFFFF">&nbsp; </TD>
    <TD width="9%" align=left noWrap bgcolor="#FFFFFF">&nbsp; </TD>
    <TD width="9%" align=left noWrap bgcolor="#FFFFFF">&nbsp; </TD>
    <TD width="9%" align=center noWrap bgcolor="#FFFFFF"><B>Other</B> </TD>
    <TD width="9%" align=left noWrap bgcolor="#FFFFFF">&nbsp; </TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left noWrap bgcolor="#FFFFFF">&nbsp; </TD>
    <TD width="9%" align=left noWrap bgcolor="#FFFFFF">&nbsp; </TD>
    <TD width="9%" align=left noWrap bgcolor="#FFFFFF">&nbsp; </TD>
    <TD width="9%" align=left noWrap bgcolor="#FFFFFF">&nbsp; </TD>
    <TD width="9%" align=left noWrap bgcolor="#FFFFFF">&nbsp; </TD>
    <TD width="9%" align=left noWrap bgcolor="#FFFFFF">&nbsp; </TD>
    <TD width="9%" align=center noWrap bgcolor="#FFFFFF"><B>Annual</B> </TD>
    <TD width="9%" align=left noWrap bgcolor="#FFFFFF">&nbsp; </TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left noWrap bgcolor="#FFFFFF">&nbsp; </TD>
    <TD width="9%" align=left noWrap bgcolor="#FFFFFF">&nbsp; </TD>
    <TD width="9%" align=left noWrap bgcolor="#FFFFFF">&nbsp; </TD>
    <TD width="9%" align=left noWrap bgcolor="#FFFFFF">&nbsp; </TD>
    <TD width="9%" align=center noWrap bgcolor="#FFFFFF"><B>Stock</B> </TD>
    <TD width="9%" align=center noWrap bgcolor="#FFFFFF"><B>Option</B> </TD>
    <TD width="9%" align=center noWrap bgcolor="#FFFFFF"><B>Compen-</B> </TD>
    <TD width="9%" align=left noWrap bgcolor="#FFFFFF">&nbsp; </TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left noWrap bgcolor="#FFFFFF"><B>Name and Principal</B> </TD>
    <TD width="9%" align=left noWrap bgcolor="#FFFFFF">&nbsp; </TD>
    <TD width="9%" align=center noWrap bgcolor="#FFFFFF"><B>Salary</B> </TD>
    <TD width="9%" align=center noWrap bgcolor="#FFFFFF"><B>Bonus</B> </TD>
    <TD width="9%" align=center noWrap bgcolor="#FFFFFF"><B>Awards</B> </TD>
    <TD width="9%" align=center noWrap bgcolor="#FFFFFF"><B>Awards</B> </TD>
    <TD width="9%" align=center noWrap bgcolor="#FFFFFF"><B>sation</B> </TD>
    <TD width="9%" align=center noWrap bgcolor="#FFFFFF"><B>Total</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left noWrap bgcolor="#FFFFFF"><B>Position</B> </TD>
    <TD width="9%" align=center noWrap bgcolor="#FFFFFF"><B>Year</B> </TD>
    <TD width="9%" align=center noWrap bgcolor="#FFFFFF"><B>($)</B> </TD>
    <TD width="9%" align=center noWrap bgcolor="#FFFFFF"><B>($)</B> </TD>
    <TD width="9%" align=center noWrap bgcolor="#FFFFFF"><B>($)</B> </TD>
    <TD width="9%" align=center noWrap bgcolor="#FFFFFF"><B>($)</B> </TD>
    <TD width="9%" align=center noWrap bgcolor="#FFFFFF"><B>($)</B> </TD>
    <TD width="9%" align=center noWrap bgcolor="#FFFFFF"><B>($)</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD align=left bgcolor="#e6efff">Christopher Missling, PhD<SUP>(1)</SUP> </TD>
    <TD width="9%" align=center bgcolor="#e6efff">2014 </TD>
    <TD width="9%" align=center bgcolor="#e6efff">240,000 </TD>
    <TD width="9%" align=center bgcolor="#e6efff">400,000<SUP>(2)</SUP> </TD>
    <TD width="9%" align=center bgcolor="#e6efff">Nil </TD>
    <TD width="9%" align=center bgcolor="#e6efff">16,888 </TD>
    <TD width="9%" align=center bgcolor="#e6efff">Nil </TD>
    <TD width="9%" align=center bgcolor="#e6efff">656,888 </TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD align=left bgcolor="#e6efff">President, Chief Executive Officer, Chief </TD>
    <TD width="9%" align=center bgcolor="#e6efff">2013 </TD>
    <TD width="9%" align=center bgcolor="#e6efff">60,000 </TD>
    <TD width="9%" align=center bgcolor="#e6efff">Nil </TD>
    <TD width="9%" align=center bgcolor="#e6efff">1,600,000<SUP>(3) </SUP></TD>
    <TD width="9%" align=center bgcolor="#e6efff">1,002,500</TD>
    <TD width="9%" align=center bgcolor="#e6efff">Nil </TD>
    <TD width="9%" align=center bgcolor="#e6efff">2,662,500 </TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD align=left bgcolor="#e6efff">Financial Officer and Director </TD>
    <TD width="9%" align=center bgcolor="#e6efff"></TD>
    <TD width="9%" align=center bgcolor="#e6efff"></TD>
    <TD width="9%" align=center bgcolor="#e6efff"></TD>
    <TD width="9%" align=center bgcolor="#e6efff"></TD>
    <TD width="9%" align=center bgcolor="#e6efff"></TD>
    <TD width="9%" align=center bgcolor="#e6efff"></TD>
    <TD width="9%" align=center bgcolor="#e6efff"></TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">Robert Chisholm<SUP>(4)</SUP> </TD>
    <TD width="9%" align=center bgcolor="#FFFFFF">2014 </TD>
    <TD width="9%" align=center bgcolor="#FFFFFF">Nil </TD>
    <TD width="9%" align=center bgcolor="#FFFFFF">Nil </TD>
    <TD width="9%" align=center bgcolor="#FFFFFF">Nil </TD>
    <TD width="9%" align=center bgcolor="#FFFFFF">Nil </TD>
    <TD width="9%" align=center bgcolor="#FFFFFF">Nil </TD>
    <TD width="9%" align=center bgcolor="#FFFFFF">Nil </TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">President, Chief Financial Officer and Director </TD>
    <TD width="9%" align=center bgcolor="#FFFFFF">2013 </TD>
    <TD width="9%" align=center bgcolor="#FFFFFF">24,677 </TD>
    <TD width="9%" align=center bgcolor="#FFFFFF">Nil </TD>
    <TD width="9%" align=center bgcolor="#FFFFFF">Nil </TD>
    <TD width="9%" align=center bgcolor="#FFFFFF">Nil </TD>
    <TD width="9%" align=center bgcolor="#FFFFFF">Nil </TD>
    <TD width="9%" align=center bgcolor="#FFFFFF">24,677 </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 vAlign=top>
    <TD align=left ><sup>(1) </sup> </TD>
    <TD align=left width="95%">Christopher Missling was appointed as director,
      President, Chief Executive Officer, Chief Financial Officer, Secretary and
      Treasurer on July 5, 2013. </TD></TR>
  <TR>
    <TD ><sup>&nbsp; </sup> </TD>
    <TD width="95%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left ><sup>(2) </sup> </TD>
    <TD align=left width="95%">The bonus was a result of the successful
      financing in March, 2014. </TD></TR>
  <TR>
    <TD ><sup>&nbsp; </sup> </TD>
    <TD width="95%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left ><sup>(3) </sup> </TD>
    <TD align=left width="95%">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
      were expected to vest at the date of issuance. </TD></TR>
  <TR>
    <TD ><sup>&nbsp; </sup> </TD>
    <TD width="95%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left ><sup>(4) </sup> </TD>
    <TD align=left width="95%">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.
    </TD></TR></TABLE>
<P align=justify><B><I>Employment and Consulting Agreements</I></B></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=center>45 </P>
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<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><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, 2014.</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 noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="20%" colSpan=2 align=center noWrap bgcolor="#EEEEEE"><B>Option Awards</B> </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="20%" colSpan=2 align=center noWrap bgcolor="#EEEEEE"><B>Stock Awards</B> </TD>
  <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><B>Number of</B> </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><B>Equity</B> </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><B>Equity</B> </TD>
  <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><B>Equity</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><B>Number of </B></TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><STRONG>Securities</STRONG> </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><B>Incentive</B> </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><B>Number </B></TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><STRONG>Market </STRONG></TD>
    <TD
    width="10%" align=center noWrap bgcolor="#EEEEEE"><STRONG>Incentive&nbsp;</STRONG>&nbsp;</TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp;<STRONG>Incentive</STRONG></TD>
  </TR>
  <TR vAlign=top>
    <TD align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><B>Securities </B></TD>
    <TD
    width="10%" align=center noWrap bgcolor="#EEEEEE"><STRONG>Underlying</STRONG>&nbsp;&nbsp;</TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><B>Plan</B> </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><B>Option</B> </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><B>of</B> </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><B>Value of</B> </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><B>Plan</B> </TD>
  <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><B>Plan</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><B>Underlying&nbsp;</B> </TD>
    <TD
width="10%" align=center noWrap bgcolor="#EEEEEE"><STRONG>Unexercisable</STRONG>&nbsp;</TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><B>Awards: </B></TD>
    <TD
    width="10%" align=center noWrap bgcolor="#EEEEEE"><STRONG>Exercise&nbsp;</STRONG>&nbsp;</TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><STRONG>Option</STRONG> </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><B>Shares of </B></TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><STRONG>Shares
    or&nbsp;</STRONG>&nbsp;</TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><STRONG>Awards:</STRONG></TD>
  <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><STRONG>Awards:</STRONG></TD>
  </TR>
  <TR vAlign=top>
    <TD align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><B>Exercisable</B> </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><B>Options</B> </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><B>Number of </B></TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><STRONG>Price</STRONG></TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><STRONG>Expiration</STRONG></TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><STRONG>Units of</STRONG></TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><STRONG>Units of</STRONG></TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp;<STRONG>Number</STRONG></TD>
  <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><STRONG>Market or</STRONG></TD>
  </TR>
  <TR vAlign=top>
    <TD align=center noWrap bgcolor="#EEEEEE"><B>Name</B> </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><B>Options</B> </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><B>(#)</B> </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><B>Securities</B> </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><B>($)</B> </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><B>Date</B> </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><B>Stock </B></TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><STRONG>Stock that</STRONG> </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><B>of</B> </TD>
  <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><B>Payout</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><B>(#)</B> </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><B>Underlying</B> </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><B>that have </B></TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><STRONG>have
    not&nbsp;</STRONG>&nbsp;</TD>
    <TD
    width="10%" align=center noWrap bgcolor="#EEEEEE"><STRONG>Unearned&nbsp;</STRONG>&nbsp;</TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><STRONG>Value
    of</STRONG>&nbsp;&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><B>Unexercised</B> </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><B>not</B> </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><B>Vested </B></TD>
    <TD
width="10%" align=center noWrap bgcolor="#EEEEEE"><STRONG>Shares,&nbsp;</STRONG>&nbsp;</TD>
  <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><STRONG>Unearned</STRONG> </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><B>Unearned</B> </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><B>Vested</B> </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><B>($)</B> </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><B>Units or </B></TD>
  <TD
  width="10%" align=center noWrap bgcolor="#EEEEEE"><STRONG>Shares,</STRONG>&nbsp;&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><B>Options</B> </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><B>(#)</B> </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><B>Other</B> </TD>
  <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><B>Units or</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><B>(#)</B> </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><B>Rights</B> </TD>
  <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><B>Other</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><B>that</B> </TD>
  <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><B>Rights that</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><B>have</B> </TD>
  <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><B>have not</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><B>not</B> </TD>
  <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><B>Vested</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><B>Vested</B> </TD>
  <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><B>($)</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=left noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=left noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=left noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=left noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=left noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=left noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=left noWrap bgcolor="#EEEEEE">&nbsp; </TD>
    <TD width="10%" align=center noWrap bgcolor="#EEEEEE"><B>(#)</B> </TD>
  <TD width="10%" align=left noWrap bgcolor="#EEEEEE">&nbsp; </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#e6efff">Christopher </TD>
    <TD width="10%" align=center bgcolor="#e6efff">2,000,000 </TD>
    <TD width="10%" align=center bgcolor="#e6efff">Nil </TD>
    <TD width="10%" align=center bgcolor="#e6efff">Nil </TD>
    <TD width="10%" align=center bgcolor="#e6efff">0.40 </TD>
    <TD width="10%" align=center bgcolor="#e6efff">July 5, 2023 </TD>
    <TD width="10%" align=center bgcolor="#e6efff">3,000,000 </TD>
    <TD width="10%" align=center bgcolor="#e6efff">540,000 </TD>
    <TD width="10%" align=center bgcolor="#e6efff">Nil </TD>
  <TD width="10%" align=center bgcolor="#e6efff">Nil </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#FFFFFF">Missling </TD>
    <TD width="10%" align=center bgcolor="#FFFFFF">Nil </TD>
    <TD width="10%" align=center bgcolor="#FFFFFF">500,000 </TD>
    <TD width="10%" align=center bgcolor="#FFFFFF">Nil </TD>
    <TD width="10%" align=center bgcolor="#FFFFFF">0.33 </TD>
    <TD width="10%" align=center bgcolor="#FFFFFF">May 8, 2024 </TD>
    <TD width="10%" align=center bgcolor="#FFFFFF"></TD>
    <TD width="10%" align=center bgcolor="#FFFFFF"></TD>
    <TD width="10%" align=center bgcolor="#FFFFFF"></TD>
  <TD width="10%" align=center bgcolor="#FFFFFF"></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#e6efff">Athanasios Skarpelos </TD>
    <TD width="10%" align=center bgcolor="#e6efff">Nil </TD>
    <TD width="10%" align=center bgcolor="#e6efff">Nil </TD>
    <TD width="10%" align=center bgcolor="#e6efff">Nil </TD>
    <TD width="10%" align=center bgcolor="#e6efff">N/A </TD>
    <TD width="10%" align=center bgcolor="#e6efff">N/A </TD>
    <TD width="10%" align=center bgcolor="#e6efff">Nil </TD>
    <TD width="10%" align=center bgcolor="#e6efff">N/A </TD>
    <TD width="10%" align=center bgcolor="#e6efff">Nil </TD>
  <TD width="10%" align=center bgcolor="#e6efff">N/A </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#FFFFFF">Bernd Metzner </TD>
    <TD width="10%" align=center bgcolor="#FFFFFF">Nil </TD>
    <TD width="10%" align=center bgcolor="#FFFFFF">150,000 </TD>
    <TD width="10%" align=center bgcolor="#FFFFFF">Nil </TD>
    <TD width="10%" align=center bgcolor="#FFFFFF">0.30 </TD>
    <TD width="10%" align=center bgcolor="#FFFFFF">N/A </TD>
    <TD width="10%" align=center bgcolor="#FFFFFF">Nil </TD>
    <TD width="10%" align=center bgcolor="#FFFFFF">N/A </TD>
    <TD width="10%" align=center bgcolor="#FFFFFF">Nil </TD>
  <TD width="10%" align=center bgcolor="#FFFFFF">N/A </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#e6efff">Elliot Favus </TD>
    <TD width="10%" align=center bgcolor="#e6efff">Nil </TD>
    <TD width="10%" align=center bgcolor="#e6efff">150,000 </TD>
    <TD width="10%" align=center bgcolor="#e6efff">Nil </TD>
    <TD width="10%" align=center bgcolor="#e6efff">0.30 </TD>
    <TD width="10%" align=center bgcolor="#e6efff">N/A </TD>
    <TD width="10%" align=center bgcolor="#e6efff">Nil </TD>
    <TD width="10%" align=center bgcolor="#e6efff">N/A </TD>
    <TD width="10%" align=center bgcolor="#e6efff">Nil </TD>
  <TD width="10%" align=center bgcolor="#e6efff">N/A </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#FFFFFF">Steffen Thomas </TD>
    <TD width="10%" align=center bgcolor="#FFFFFF">Nil </TD>
    <TD width="10%" align=center bgcolor="#FFFFFF">Nil </TD>
    <TD width="10%" align=center bgcolor="#FFFFFF">Nil </TD>
    <TD width="10%" align=center bgcolor="#FFFFFF">N/A </TD>
    <TD width="10%" align=center bgcolor="#FFFFFF">N/A </TD>
    <TD width="10%" align=center bgcolor="#FFFFFF">Nil </TD>
    <TD width="10%" align=center bgcolor="#FFFFFF">N/A </TD>
    <TD width="10%" align=center bgcolor="#FFFFFF">Nil </TD>
  <TD width="10%" align=center bgcolor="#FFFFFF">N/A </TD>
  </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,
2014: </P>
<P align=center>46 </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>
    <TD noWrap align=left>&nbsp;</TD>
    <TD noWrap align=center width="11%"><STRONG>Fees</STRONG>&nbsp;</TD>
    <TD noWrap align=center width="11%">&nbsp;</TD>
    <TD noWrap align=center width="11%">&nbsp;</TD>
    <TD noWrap align=center width="11%"><STRONG>Non-Equity</STRONG></TD>
    <TD noWrap align=center width="11%"><STRONG>Nonqualified</STRONG></TD>
    <TD noWrap align=center width="11%">&nbsp;</TD>
    <TD noWrap align=left width="11%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left>&nbsp; </TD>
    <TD noWrap align=center width="11%"><B>Earned</B> </TD>
    <TD noWrap align=center width="11%"><B>Stock</B> </TD>
    <TD noWrap align=center width="11%"><B>Option</B> </TD>
    <TD noWrap align=center width="11%"><B>Incentive Plan</B> </TD>
    <TD noWrap align=center width="11%"><B>Deferred</B></TD>
    <TD noWrap align=center width="11%"><B>All Other</B> </TD>
    <TD noWrap align=left width="11%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left>&nbsp; </TD>
    <TD noWrap align=center width="11%"><B>or Paid in</B></TD>
    <TD noWrap align=center width="11%"><STRONG>Awards</STRONG> </TD>
    <TD noWrap align=center width="11%"><B>Awards&nbsp;</B> </TD>
    <TD noWrap align=center width="11%"><STRONG>Compensation</STRONG></TD>
    <TD noWrap align=center width="11%"><STRONG>Compensation</STRONG></TD>
    <TD noWrap align=center width="11%"><STRONG>Compensation</STRONG></TD>
    <TD noWrap align=center width="11%"><B>Total</B></TD></TR>
  <TR vAlign=top>
    <TD noWrap align=center><B>Name</B> </TD>
    <TD noWrap align=center width="11%"><B>Cash</B> </TD>
    <TD noWrap align=center width="11%"><B>($)</B> </TD>
    <TD noWrap align=center width="11%"><B>($)</B> </TD>
    <TD noWrap align=center width="11%"><B>($)</B> </TD>
    <TD noWrap align=center width="11%"><B>Earnings ($)</B></TD>
    <TD noWrap align=center width="11%"><B>($)</B> </TD>
    <TD noWrap align=center width="11%"><B>($)</B></TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left>&nbsp; </TD>
    <TD noWrap align=center width="11%"><B>($)</B> </TD>
    <TD noWrap align=left width="11%">&nbsp; </TD>
    <TD noWrap align=left width="11%">&nbsp; </TD>
    <TD noWrap align=left width="11%">&nbsp; </TD>
    <TD noWrap align=left width="11%">&nbsp; </TD>
    <TD noWrap align=left width="11%">&nbsp; </TD>
    <TD noWrap align=left width="11%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#e6efff">Athanasios Skarpelos </TD>
    <TD width="11%" align=center bgcolor="#e6efff">Nil </TD>
    <TD width="11%" align=center bgcolor="#e6efff">Nil </TD>
    <TD width="11%" align=center bgcolor="#e6efff">Nil </TD>
    <TD width="11%" align=center bgcolor="#e6efff">Nil </TD>
    <TD width="11%" align=center bgcolor="#e6efff">Nil </TD>
    <TD width="11%" align=center bgcolor="#e6efff">Nil </TD>
  <TD width="11%" align=center bgcolor="#e6efff">Nil </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#FFFFFF">Bernd Metzner </TD>
    <TD width="11%" align=center bgcolor="#FFFFFF">5,000 </TD>
    <TD width="11%" align=center bgcolor="#FFFFFF">Nil </TD>
    <TD width="11%" align=center bgcolor="#FFFFFF">4,626 </TD>
    <TD width="11%" align=center bgcolor="#FFFFFF">Nil </TD>
    <TD width="11%" align=center bgcolor="#FFFFFF">Nil </TD>
    <TD width="11%" align=center bgcolor="#FFFFFF">Nil </TD>
  <TD width="11%" align=center bgcolor="#FFFFFF">9,626 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#e6efff">Elliot Favus </TD>
    <TD width="11%" align=center bgcolor="#e6efff">Nil </TD>
    <TD width="11%" align=center bgcolor="#e6efff">Nil </TD>
    <TD width="11%" align=center bgcolor="#e6efff">4,626 </TD>
    <TD width="11%" align=center bgcolor="#e6efff">Nil </TD>
    <TD width="11%" align=center bgcolor="#e6efff">Nil </TD>
    <TD width="11%" align=center bgcolor="#e6efff">Nil </TD>
  <TD width="11%" align=center bgcolor="#e6efff">4,626 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#FFFFFF">Steffen Thomas </TD>
    <TD width="11%" align=center bgcolor="#FFFFFF">Nil </TD>
    <TD width="11%" align=center bgcolor="#FFFFFF">Nil </TD>
    <TD width="11%" align=center bgcolor="#FFFFFF">Nil </TD>
    <TD width="11%" align=center bgcolor="#FFFFFF">Nil </TD>
    <TD width="11%" align=center bgcolor="#FFFFFF">Nil </TD>
    <TD width="11%" align=center bgcolor="#FFFFFF">Nil </TD>
  <TD width="11%" align=center bgcolor="#FFFFFF">Nil </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, 2014, 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>47 </P>
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<P align=center><B>SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT AND RELATED STOCKHOLDER MATTERS </B></P>
<P align=justify>The following table sets forth, as of May 14, 2015, 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>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD noWrap align=center><B>Name and address of</B> </TD>
    <TD noWrap align=center width="25%"><B>Amount and nature of</B> </TD>
    <TD noWrap align=center width="25%"><B>Percent of</B> </TD>
    <TD noWrap align=left width="25%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=center><B>Title of class</B> </TD>
    <TD noWrap align=center width="25%"><B>beneficial owner</B> </TD>
    <TD noWrap align=center width="25%"><B>beneficial ownership</B> </TD>
    <TD noWrap align=center width="25%"><B>class </B><B><SUP>(1)</SUP></B>
  </TD></TR>
  <TR vAlign=top bgcolor="#e6efff">
    <TD align=center>Common Stock </TD>
    <TD width="25%" align=left>Athanasios Skarpelos (Director) 2, Place du
      Port Geneva, Switzerland CH 1204 </TD>
    <TD width="25%" align=right>5,225,832 Direct </TD>
  <TD width="25%" align=center>6.77% </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center>Common Stock </TD>
    <TD align=left width="25%">Christopher Missling (Officer/Director) 51 W
      52nd Street, 7th floor New York, NY 10019 </TD>
    <TD align=right width="25%">5,000,000<SUP>(2)</SUP> </TD>
    <TD align=center width="25%">6.47% </TD></TR>
  <TR vAlign=top bgcolor="#e6efff">
    <TD align=center>Common Stock </TD>
    <TD width="25%" align=left>Bernd Metzner (Director) 51 W 52<SUP>nd
      </SUP>Street, 7<SUP>th </SUP>Floor New York, NY 10019 </TD>
    <TD width="25%" align=right>Nil </TD>
  <TD width="25%" align=center>Nil </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center>Common Stock </TD>
    <TD align=left width="25%">Elliot Favus(Director) 51 W 52<SUP>nd
      </SUP>Street, 7<SUP>th </SUP>Floor New York, NY 10019 </TD>
    <TD align=right width="25%">Nil </TD>
    <TD align=center width="25%">Nil </TD></TR>
  <TR vAlign=top>
    <TD align=center>Common Stock </TD>
    <TD align=left width="25%">Steffen Thomas, PhD 51 W 52<SUP>nd
      </SUP>Street, New York, NY 10019 </TD>
    <TD align=right width="25%">Nil </TD>
    <TD align=center width="25%">Nil </TD></TR>
  <TR vAlign=top bgcolor="#e6efff">
    <TD align=center>Common Stock </TD>
    <TD width="25%" align=left><B>Directors &amp; Executive</B> <B>Officers as
      a</B> <B>group (4 persons)</B> </TD>
    <TD width="25%" align=right>10,225,832 </TD>
  <TD width="25%" align=center>13.24% </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="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%"><sup>(1) </sup> </TD>
    <TD>
      <P align=justify>Percentage of ownership is based on 77,243,580 shares of
      our common stock issued and outstanding as of May 14, 2015. 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 other
  person.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%"><sup>(2) </sup> </TD>
    <TD>
      <P align=justify>Includes 2,000,000 stock options that have vested and
      3,000,000 shares of restricted common stock that have vested pursuant to
      the achievement of certain objectives. Does not include 1,000,000 shares
      of restricted common stock that vest pursuant to the achievement of
      certain objectives.</P></TD></TR></TABLE>

<P align=center>48 </P>
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<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>There have been no other transactions, since October 1, 2013,
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 width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">i. </TD>
    <TD>
      <P align=justify>any director or executive officer of our
  Company;</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">ii </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 vAlign=top width="5%">iii. </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=justify>We deem that Bernd Metzner, Elliot Favus and Steffen Thomas are
independent as that term is defined by NASDAQ 5605(a)(2). </P>
<P align=center><B>DESCRIPTION OF SECURITIES</B></P>
<P align=justify>We are authorized to issue 400,000,000 shares of common stock
with a par value of $0.001. As at May 14, 2015 we had 77,243,580 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=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=center>49 </P>
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<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 - OTCQX Quotation</B></P>
<P align=justify>Our common stock is quoted on the OTC Markets - OTCQX under the
trading symbol &#147;AVXL.&#148;</P>
<P align=center>50 </P>
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<P align=center><B>PLAN OF DISTRIBUTION</B></P>
<P align=justify>The common stock offered by this prospectus is being offered by
the selling stockholder, Lincoln Park. The common stock may be sold or
distributed from time to time by the selling stockholder directly to one or more
purchasers or through brokers, dealers, or underwriters who may act solely as
agents at market prices prevailing at the time of sale, at prices related to the
prevailing market prices, at negotiated prices, or at fixed prices, which may be
changed. The sale of the common stock offered by this prospectus could be
effected in one or more of the following methods:</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="5%"  >&nbsp;</TD>
    <TD align=left >&#149; </TD>
    <TD align=left width="90%">ordinary brokers&#146; transactions; </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left >&#149; </TD>
    <TD align=left width="90%">transactions involving cross or block trades;
    </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left >&#149; </TD>
    <TD align=left width="90%">through brokers, dealers, or underwriters who
      may act solely as agents </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left >&#149; </TD>
    <TD align=left width="90%">&#147;at the market&#148; into an existing market for the
      common stock; </TD></TR>
  <TR vAlign=top>
    <TD width="5%" ></TD>
    <TD align=left >&#149; </TD>
    <TD align=left width="90%">in other ways not involving market makers or
      established business markets, including direct sales to purchasers or
      sales effected through agents; </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left >&#149; </TD>
    <TD align=left width="90%">in privately negotiated transactions; or </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left >&#149; </TD>
    <TD align=left width="90%">any combination of the foregoing.
</TD></TR></TABLE>
<P align=justify>In order to comply with the securities laws of certain states,
if applicable, the shares may be sold only through registered or licensed
brokers or dealers. In addition, in certain states, the shares may not be sold
unless they have been registered or qualified for sale in the state or an
exemption from the state&#146;s registration or qualification requirement is
available and complied with.</P>
<P align=justify>Lincoln Park is an &#147;underwriter&#148; within the meaning of Section
2(a)(11) of the Securities Act.</P>
<P align=justify>Lincoln Park has informed us that it intends to use an
unaffiliated broker-dealer to effectuate all sales, if any, of the common stock
that it may purchase from us pursuant to the Purchase Agreement. Such sales will
be made at prices and at terms then prevailing or at prices related to the then
current market price. Each such unaffiliated broker-dealer will be an
underwriter within the meaning of Section 2(a)(11) of the Securities Act.
Lincoln Park has informed us that each such broker-dealer will receive
commissions from Lincoln Park that will not exceed customary brokerage
commissions. In compliance with the guidelines of the Financial Industry
Regulatory Authority, Inc., or FINRA, the maximum consideration or discount to
be received by any FINRA member or independent broker dealer may not exceed 8%
of the aggregate amount of the securities offered pursuant to this prospectus.
</P>
<P align=justify>Brokers, dealers, underwriters or agents participating in the
distribution of the shares as agents may receive compensation in the form of
commissions, discounts, or concessions from the selling stockholder and/or
purchasers of the common stock for whom the broker-dealers may act as agent. The
compensation paid to a particular broker-dealer may be less than or in excess of
customary commissions. Neither we nor Lincoln Park can presently estimate the
amount of compensation that any agent will receive.</P>
<P align=justify>We know of no existing arrangements between Lincoln Park or any
other stockholder, broker, dealer, underwriter or agent relating to the sale or
distribution of the shares offered by this prospectus. At the time a particular
offer of shares is made, a prospectus supplement, if required, will be
distributed that will set forth the names of any agents, underwriters or dealers
and any compensation from the selling stockholder, and any other required
information.</P>
<P align=justify>We will pay the expenses incident to the registration,
offering, and sale of the shares to Lincoln Park. We have agreed to indemnify
Lincoln Park and certain other persons against certain liabilities in connection
with the offering of shares of common stock offered hereby, including
liabilities arising under the Securities Act or, if such indemnity is
unavailable, to contribute amounts required to be paid in respect of such
liabilities. Lincoln Park has agreed to indemnify us against liabilities under
the Securities Act that may arise from certain written information furnished to
us by Lincoln Park specifically for use in this prospectus or, if such indemnity
is unavailable, to contribute amounts required to be paid in respect of such
liabilities.</P>
<P align=center>51 </P>
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<P align=justify>Lincoln Park has represented to us that at no time prior to the
Purchase Agreement has Lincoln Park or its agents, representatives or affiliates
engaged in or effected, in any manner whatsoever, directly or indirectly, any
short sale (as such term is defined in Rule 200 of Regulation SHO of the
Exchange Act) of our common stock or any hedging transaction, which establishes
a net short position with respect to our common stock. Lincoln Park agreed that
during the term of the Purchase Agreement, it, its agents, representatives or
affiliates will not enter into or effect, directly or indirectly, any of the
foregoing transactions.</P>
<P align=justify>We have advised Lincoln Park that it is required to comply with
Regulation M promulgated under the Exchange Act. With certain exceptions,
Regulation M precludes the selling stockholder, any affiliated purchasers, and
any broker-dealer or other person who participates in the distribution from
bidding for or purchasing, or attempting to induce any person to bid for or
purchase any security which is the subject of the distribution until the entire
distribution is complete. Regulation M also prohibits any bids or purchases made
in order to stabilize the price of a security in connection with the
distribution of that security. All of the foregoing may affect the marketability
of the securities offered by this prospectus.</P>
<P align=justify>This offering will terminate on the date that all shares
offered by this prospectus have been sold by Lincoln Park.</P>
<P align=justify>Our common stock is quoted on the OTCQX under the symbol
&#147;AVXL&#148;.</P>
<P align=center>52 </P>
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<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><B>EXPERTS</B></P>
<P align=justify>The financial statements as of September 30, 2014 and 2013 and
for each of the two years in the period ended September 30, 2014 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, 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 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>53 </P>
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<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 noWrap align=left>&nbsp; </TD>
    <TD noWrap align=center width="5%">Page </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left bgColor=#eeeeee><B>Consolidated Financial Statements
      For the Years Ended September 30, 2014 and 2013</B> </TD>
    <TD noWrap align=left width="5%" bgColor=#eeeeee>&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left><U>Report of Independent Registered Public Accounting
      Firms</U> </TD>
    <TD align=center width="5%"><U>F-2</U> </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><U>Balance Sheets</U> </TD>
    <TD align=center width="5%" bgColor=#eeeeee><U>F-3</U> </TD></TR>
  <TR vAlign=top>
    <TD align=left><U>Statements of Operations</U> </TD>
    <TD align=center width="5%"><U>F-4</U> </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><U>Statements of Cash Flow</U> </TD>
    <TD align=center width="5%" bgColor=#eeeeee><U>F-5</U> </TD></TR>
  <TR vAlign=top>
    <TD align=left><U>Statement of Changes in Capital Deficit</U> </TD>
    <TD align=center width="5%"><U>F-6</U> </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><U>Notes to Financial Statements</U> </TD>
    <TD align=center width="5%" bgColor=#eeeeee><U>F-7</U> </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="5%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><B>Unaudited Interim Condensed Consolidated
      Financial Statements For the Six Months</B> <B>Ended March 31, 2015 and
      2014</B> </TD>
    <TD align=left width="5%" bgColor=#eeeeee></TD></TR>
  <TR vAlign=top>
    <TD align=left><U>Balance Sheets</U> </TD>
    <TD align=center width="5%"><U>F-35</U> </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><U>Statements of Operations</U> </TD>
    <TD align=center width="5%" bgColor=#eeeeee><U>F-36</U> </TD></TR>
  <TR vAlign=top>
    <TD align=left><U>Statements of Cash Flow</U> </TD>
    <TD align=center width="5%"><U>F-37</U> </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><U>Statement of Changes in Capital
      Deficit</U> </TD>
    <TD align=center width="5%" bgColor=#eeeeee><U>F-38</U> </TD></TR>
  <TR vAlign=top>
    <TD align=left><U>Notes to Financial Statements</U> </TD>
    <TD align=center width="5%"><U>F-39</U> </TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_60></A>
<P align=center>&nbsp;</P>
<P align=center>A</B><B>NAVEX LIFE SCIENCES CORP. </B></P>
<P align=center>CONSOLIDATED FINANCIAL STATEMENTS </P>
<P align=center>September 30, 2014 and 2013 </P>
<P align=center>&nbsp;</P>
<P align=center>&nbsp;</P>
<P align=center>F-1</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_con-1></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="consentx1x1.jpg"
      border=0 width="113" height="52"></TD>
    <TD align=left width="33%">Tel: 212-885-8000 <BR>Fax: 212-697-1299
      <BR><B>www.bdo.com</B> </TD>
    <TD align=left width="33%">100 Park Avenue <BR>New York, NY 10017
  <BR></TD></TR></TABLE>
<P align=justify><B>Report of Independent Registered Public Accounting Firm
</B></P>
<P align=justify><BR>Board of Directors and Stockholders <BR>Anavex Life
Sciences Corp. <BR>New York, NY</P>
<P align=justify>We have audited the accompanying consolidated balance sheets of
Anavex Life Sciences Corp. as of September 30, 2014 and 2013 and the related
consolidated statements of operations, cash flows, and changes in stockholders&#146;
equity (capital deficit) for each of the two years in the period ended September
30, 2014. 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 audits. </P>
<P align=justify>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 audits 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 audits provide 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, 2014 and 2013, and the results of
its operations and its cash flows for each of the two years in the period ended
September 30, 2014<B>,</B> in conformity with accounting principles generally
accepted in the United States of America. </P>
<P align=justify>/s/ BDO USA, LLP </P>
<P align=justify>New York, NY </P>
<P align=justify>December 29, 2014 </P>
<P align=justify>&nbsp;</P>
<P align=justify>&nbsp;</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>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. </TD></TR>
  <TR>
    <TD>&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left>BDO is the brand name for the BDO network and for each of
      the BDO Member Firms. </TD></TR></TABLE><BR>
<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-2></A>
<P align=center><B>ANAVEX </B><B>LIFE </B><B>SCIENCES </B><B>CORP.</B><BR>
  CONSOLIDATED BALANCE SHEETS<BR>
  September 30, 2014 and
  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=center></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%">2014 </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%">2013 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
  </TR>
  <TR>
    <TD align=left >&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>
  </TR>
  <TR>
    <TD colspan="6" align=center
      bgColor=#e6efff>&nbsp;<STRONG><U>ASSETS</U></STRONG> </TD>
    <TD vAlign=bottom align=center width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="12%" >&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="12%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Current </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>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;Cash </TD>
    <TD vAlign=bottom align=left width="1%" >$</TD>
    <TD vAlign=bottom align=right width="12%">7,262,138 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >$</TD>
    <TD vAlign=bottom align=right width="12%">345,074 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left 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="12%" bgColor=#e6efff>89,117 </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>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>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">7,351,255 </TD>
    <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%">393,449 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>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>2,247 </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>&#150; </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>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="12%">7,353,502 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="12%">393,449 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
  </TR>
  <TR>
    <TD 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 colspan="6" align=center><B><U>LIABILITIES</U></B> </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR>
    <TD 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>Current </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 bgColor=#e6efff>&nbsp; &nbsp;Accounts payable and accrued
      liabilities </TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>1,249,084 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>1,741,797 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;Promissory notes payable </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%">192,065 </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%">210,863 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>1,441,149 </TD>
    <TD vAlign=bottom align=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>1,952,660 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Non&#150;interest bearing 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="12%">5,719,727 </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%">904,000 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left 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>7,160,876 </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>2,856,660 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD></TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%"></TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%"></TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD colspan="6" align=center bgColor=#e6efff><B><U>STOCKHOLDERS' </U></B><B><U>EQUITY </U></B><B><U>(CAPITAL</U></B><B><U> DEFICIT)</U></B> </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&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 bgColor=#e6efff>Capital stock </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>
  <TR vAlign=top>
    <TD align=left>&nbsp;&nbsp; Authorized: <BR>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      150,000,000 common shares, par value $0.001 per share <BR>
      &nbsp;&nbsp;
      Issued and outstanding: <BR>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 47,200,237
      common shares (September 30, 2013 &#150; 37,237,588) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">47,201 </TD>
    <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%">37,238 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Additional paid&#150;in capital </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>52,078,750 </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="12%" bgColor=#e6efff>38,644,523 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Common stock to be issued </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">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="12%">60,000 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Accumulated deficit </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>(52,573,325</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>(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>&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%">192,626 </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%">(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 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>7,353,502 </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>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="12%" bgColor=#e6efff>393,449 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
</TABLE>
<P align=center>SEE ACCOMPANYING NOTES </P>
<P align=center>F-3</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_F-3></A>
<P align=center><B>ANAVEX </B><B>LIFE </B><B>SCIENCES </B><B>CORP.</B><BR>
  CONSOLIDATED STATEMENTS OF OPERATIONS<BR>
  for the
  years ended September 30, 2014 and 2013<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="12%">2014 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="12%">2013 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Operating expenses </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>General and administrative &#150; Notes 8 and 9 </TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="12%">2,236,580 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="12%">1,873,520 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Research and development </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>732,395 </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="12%"
    bgColor=#e6efff>263,847 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <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 align=left bgColor=#e6efff>Total operating expenses </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>(2,968,975</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>(2,137,367</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
  </TR>
  <TR>
    <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 align=left bgColor=#e6efff>Other income (expenses) </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=left>Interest and finance expenses, net </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">(7,089</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">(51,341</TD>
    <TD align=left width="2%" >) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Gain (loss) on settlement of accounts
      payable </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>199,655 </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>(976,880</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Financing related charges and adjustments </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">(8,624,986</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">(480,328</TD>
    <TD align=left width="2%" >) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Foreign exchange loss </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>33,042 </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="12%"
    bgColor=#e6efff>(54,130</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>) </TD>
  </TR>
  <TR>
    <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 align=left bgColor=#e6efff>Total other expenses, net </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>(8,399,378</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" 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="12%"
    bgColor=#e6efff>(1,562,679</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>) </TD>
  </TR>
  <TR>
    <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 align=left bgColor=#e6efff>Net loss and comprehensive loss for 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>(11,368,353</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
     bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="12%"
    bgColor=#e6efff>(3,700,046</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
     bgColor=#e6efff>) </TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Loss per share </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;Basic </TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="12%">(0.29</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="12%">(0.12</TD>
    <TD align=left width="2%" >) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Diluted </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>(0.30</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>(0.12</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
  </TR>
  <TR>
    <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 align=left bgColor=#e6efff>Weighted average number of shares
      outstanding </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=left>&nbsp; &nbsp;Basic </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">39,727,731 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">31,908,441 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Diluted </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>39,727,731 </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>31,908,441 </TD>
    <TD align=left width="2%"
  bgColor=#e6efff>&nbsp;</TD>
  </TR>
</TABLE>
<P align=center>SEE ACCOMPANYING NOTES </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=center><B>ANAVEX </B><B>LIFE </B><B>SCIENCES </B><B>CORP.</B><BR>
  CONSOLIDATED STATEMENTS OF CASH
  FLOWS<BR>
  fortheyearsendedSeptember30,2014and2013<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 style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="12%">2014 </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%">2013 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Cash Flows used in Operating Activities </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=left>Net loss for the period </TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="12%">(11,368,353</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="12%">(3,700,046</TD>
    <TD align=left width="2%" >) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Adjustments to reconcile net loss to net
      cash used in operations: </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=left>&nbsp; &nbsp;Amortization and depreciation </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">768 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">576 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Accretion of debt discount </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>1,917,615 </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>&#150; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;Stock&#150;based compensation </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">637,925 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">1,002,500 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Amortization of deferred
      financing charge </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>1,123,612 </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>1,215 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;Change in fair value of derivative financial
      instruments </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">(2,956,000</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">(15,000</TD>
    <TD align=left width="2%" >) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;(Gain) Loss on settlement of
      accounts payable </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>(199,655</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>976,880 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;Loss on extinguishment of debt </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">8,539,759 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">495,328 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Unrealized foreign exchange </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>(18,798</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>(4,937</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left colSpan=3>Changes in non&#150;cash working capital balances
      related to operations: </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Prepaid expenses </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>(33,234</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>&#150; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;Accounts payable and accrued liabilities </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%">(303,018</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%">465,911 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Net cash used in operating activities </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>(2,659,379</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>(777,573</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
  </TR>
  <TR>
    <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 align=left bgColor=#e6efff>Cash Flows used in Investing Activities </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=left>Acquisition of equipment </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%">(3,015</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%">&#150; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Net cash used in investing activities </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>(3,015</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>&#150; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <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 align=left bgColor=#e6efff>Cash Flows provided by Financing Activities </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=left>Issuance of common shares, net of share issue costs </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">368,170 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">801,285 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Share subscriptions received </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>&#150; </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>60,000 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Proceeds from the issuance of promissory notes </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">&#150; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">250,000 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Financing fees paid </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>(788,712</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>&#150; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Proceeds from the issuance of convertible debentures </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%">10,000,000 </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="12%">&#150; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Net cash provided by financing activities </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>9,579,458 </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>1,111,285 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <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 align=left bgColor=#e6efff>Increase in cash during the period </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>6,917,064 </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>333,712 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Cash, beginning of period </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%">345,074 </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="12%">11,362 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Cash, end of 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>7,262,138 </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>345,074 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <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 align=left bgColor=#e6efff>Supplemental Cash Flow Information &#150; Note
      11 </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>
</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=center><B>ANAVEX </B><B>LIFE </B><B>SCIENCES </B><B>CORP.</B><BR>
  CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS&#146; EQUITY (CAPITAL DEFICIT)<BR>
  for the years ended September 30, 2014 and 2013</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" 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="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>
  </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">&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">Additional </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">Common </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>
  </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">&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">Paid&#150;in </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">Shares to be </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">Accumulated </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>
  </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" style="BORDER-BOTTOM: #000000 1px solid">Shares </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="8%" align=center valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">ParValue </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="8%" 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="8%" 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="8%" align=center valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">Deficit </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="8%" align=center valign="bottom" 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 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, October 1, 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>$</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>$</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>34,599,514 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;&#150; </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="8%"
    bgColor=#e6efff>&nbsp;(37,504,926</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="8%"
      bgColor=#e6efff>(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="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%">&#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%">&#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%">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 &#150; at $0.40 </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" 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="8%" 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="8%" 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="8%" bgColor=#e6efff>&#150; </TD>
    <TD vAlign=bottom align=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>&#150; </TD>
    <TD vAlign=bottom align=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>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=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%">(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="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%">&#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%">(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 &#150; at $0.40 </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" 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="8%" 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="8%" 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="8%" bgColor=#e6efff>&#150; </TD>
    <TD vAlign=bottom align=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>&#150; </TD>
    <TD vAlign=bottom align=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>100,342 </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="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%">&#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%">(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="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%">&#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%">(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&#150;at $0.50 </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&#150; </TD>
    <TD vAlign=bottom align=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>&#150; </TD>
    <TD vAlign=bottom align=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>&#150; </TD>
    <TD vAlign=bottom align=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>60,000 </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>&#150; </TD>
    <TD vAlign=bottom align=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>60,000 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Stock&#150;based compensation </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%">&#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%">1,002,500 </TD>
    <TD vAlign=bottom align=left 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=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">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="8%" bgColor=#e6efff>&#150; </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>&#150; </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>&#150; </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>&#150; </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>(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="8%" bgColor=#e6efff>(3,700,046</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">Balance, September 30, 2013 </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">37,237,588 </TD>
    <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%">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="8%">38,644,523 </TD>
    <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%">(41,204,972</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%">(2,463,211</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Equity units issued under Purchase
      Agreement </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>400,000 </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>400 </TD>
    <TD vAlign=bottom align=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>187,770 </TD>
    <TD vAlign=bottom align=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>&#150; </TD>
    <TD vAlign=bottom align=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>&#150; </TD>
    <TD vAlign=bottom align=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>188,170 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Commitment shares issued under terms of Purchase Agreement </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">2,510 </TD>
    <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%">(3</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%">&#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%">&#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%">&#150; </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&#150;at$0.50 </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>120,000 </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>120 </TD>
    <TD vAlign=bottom align=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>59,880 </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="8%" bgColor=#e6efff>(60,000</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)</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>&#150; </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&#150;at$0.30 </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">500,000 </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%">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%">149,500 </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%">30,000 </TD>
    <TD vAlign=bottom align=left 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%">180,000 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Share issue costs, net of recovery </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&#150; </TD>
    <TD vAlign=bottom align=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>&#150; </TD>
    <TD vAlign=bottom align=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>(2,452</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>&#150; </TD>
    <TD vAlign=bottom align=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>&#150; </TD>
    <TD vAlign=bottom align=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>(2,452</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Issuance of detachable warrants </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%">&#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%">5,989,900 </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="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%">&#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%">5,989,900 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Agent's warrants issued in connection with
      convertible debentures </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&#150; </TD>
    <TD vAlign=bottom align=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>&#150; </TD>
    <TD vAlign=bottom align=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>334,900 </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="8%" bgColor=#e6efff>&#150; </TD>
    <TD vAlign=bottom align=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>&#150; </TD>
    <TD vAlign=bottom align=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>334,900 </TD>
    <TD vAlign=bottom align=left 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="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%">&#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%">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="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%">&#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%">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="8%" bgColor=#e6efff>&#150; </TD>
    <TD vAlign=bottom align=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>&#150; </TD>
    <TD vAlign=bottom align=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>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="8%" bgColor=#e6efff>&#150; </TD>
    <TD vAlign=bottom align=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>&#150; </TD>
    <TD vAlign=bottom align=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>221,000 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Capital stock issued pursuant to debt conversions&#150;at$0.30 </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">6,378,426 </TD>
    <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%">6,378 </TD>
    <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%">1,907,149 </TD>
    <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%">&#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%">1,913,527 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Capital stock issued pursuant to debt
      conversions&#150;at$0.25 </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>2,561,713 </TD>
    <TD vAlign=bottom align=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>2,562 </TD>
    <TD vAlign=bottom align=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>548,558 </TD>
    <TD vAlign=bottom align=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>&#150; </TD>
    <TD vAlign=bottom align=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>&#150; </TD>
    <TD vAlign=bottom align=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>551,120 </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%">&#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%">&#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%">27,925 </TD>
    <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%">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="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%">637,925 </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="8%" bgColor=#e6efff>&#150; </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>&#150; </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>&#150; </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>&#150; </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>(11,368,353</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>(11,368,353</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">Balance, September 30, 2014 </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%">47,200,237 </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="8%">47,201 </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%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%">52,078,750 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%">640,000 </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%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%">(52,573,325</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%" >192,626 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&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>Anavex Life Sciences Corp. <BR>
  Notes to the Consolidated
  Financial Statements <BR>
  September 30, 2014 and 2013 <BR>
  (Stated in US Dollars) <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 and Basis of Presentation</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 clinical
      stage biopharmaceutical company engaged in the development of drug
      candidates to treat Alzheimer&#146;s disease, other central nervous system
      (CNS) diseases, and various types of cancer. The Company&#146;s 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></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 December 2014 a Phase 2a clinical trial was initiated
      for ANAVEX 2-73, which is being evaluated for the treatment of Alzheimer&#146;s
      disease. The randomized trial is designed to assess the safety and
      exploratory efficacy of ANAVEX 2-73 alone as well as in combination with
      donepezil (ANAVEX PLUS) in patients with mild to moderate Alzheimer&#146;s
      disease. ANAVEX 2-73 targets sigma-1 and muscarinic receptors, which have
      been shown in preclinical studies to reduce stress levels in the brain and
      to reverse the pathological hallmarks observed in Alzheimer&#146;s disease.
      ANAVEX 2-73 showed no serious adverse events in a previously performed
      Phase 1 study. In pre-clinical studies, ANAVEX 2-73 demonstrated
      anti-amnesic and neuroprotective properties in various animal models
      including the transgenic mouse model Tg2576. </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 intends 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 </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 generally accepted accounting principles in the United
      States of America and the instructions to Form 10-K. </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>Certain amounts for the prior periods have been
      reclassified to conform to the current period&#146;s presentation. These
      reclassifications did not impact reported results or earnings per share. </P></TD>
  </TR>
</TABLE>
<P align=center>F-7</P>
<BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_F-7></A>
<P align=justify>Anavex Life Sciences Corp. <BR>
  Notes to the Consolidated
  Financial Statements <BR>
  September 30, 2014 and 2013 <BR>
  (Stated in US
  Dollars)&nbsp; &#150; Page 2</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> </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 United States generally accepted accounting principles 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>
  <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>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 subsidiaries,
      Anavex Life Sciences (France) SA, a company incorporated under the laws of
      France and Anavex Australia Pty Limited, a company incorporated under the
      laws of Australia. 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>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%">d) </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>
</TABLE>
<P align=center>F-8<BR>
</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>Anavex Life Sciences Corp. <BR>
  Notes to the Consolidated
  Financial Statements <BR>
  September 30, 2014 and 2013 <BR>
  (Stated in US
  Dollars)&nbsp; &#150; Page 3</P>
<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 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%">e) </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>
  <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>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%">g) </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 and
      trademarks. The probability of success and length of time to develop
      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 and trademarks will ever be
      successfully commercialized. Due to these risks and uncertainties, the
      acquisition of patents and trademarks does not meet the definition of an
      asset and thus are expensed as incurred.</P></TD>
  </TR>
</TABLE>
<P align=center>F-9<BR>
</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>Anavex Life Sciences Corp. <BR>
  Notes to the Consolidated
  Financial Statements <BR>
  September 30, 2014 and 2013 <BR>
  (Stated in US
  Dollars)&nbsp; &#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%">h) </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 provisions of FASB ASC 740
      "Income Taxes" (&#147;ASC 740&#148;) which requires 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>
  <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 follows the provisions of ASC 740 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 our tax positions and tax
      benefits, and our 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%">i) </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. Additionally, the numerator
      is also adjusted for changes in fair value of the derivative financial
      instruments where it is presumed they will be share settled.</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>For the year ended September 30, 2014, loss per share
      excludes 107,869,808 (2013 &#150; 12,224,479) potentially dilutive common
      shares related to outstanding options, warrants, and convertible
      debentures as their effect was anti-dilutive.</P></TD>
  </TR>
</TABLE>
<P align=center>F-10<BR>
</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>Anavex Life Sciences Corp. <BR>
  Notes to the Consolidated
  Financial Statements <BR>
  September 30, 2014 and 2013 <BR>
  (Stated in US
  Dollars)&nbsp; &#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%">j) </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 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 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%">k) </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="75%"><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="75%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%" ></TD>
    <TD align=left  >Level 2 - </TD>
    <TD align=left width="75%"><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="75%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%" ></TD>
    <TD align=left  >Level 3 - </TD>
    <TD align=left width="75%"><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>
<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>Anavex Life Sciences Corp. <BR>
  Notes to the Consolidated
  Financial Statements <BR>
  September 30, 2014 and 2013 <BR>
  (Stated in US
  Dollars)&nbsp; &#150; Page 6</P>
<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 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, 2014, the Company&#146;s Level 3 liabilities
      consisted of embedded conversion features that were required to be
      accounted for as liabilities pursuant to ASC 815 because the Company did
      not have sufficient authorized and unissued shares available to settle
      fully certain conversion features of such 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>At September 30, 2013, the Company&#146;s Level 3 liabilities
      consisted of share purchase warrants that were required to be accounted
      for as liabilities pursuant to ASC 815 Derivatives and Hedging (&#147;ASC
      815&#148;)because the terms of the warrants contained provisions that were not
      in compliance with 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
      those instruments, at September 30, 2014 and 2013, and at the date of
      reclassification of the warrants into equity using the binomial option
      pricing model to determine the fair value. The following assumptions were
      used for the respective instruments:</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=left >&nbsp;</TD>
      <TD align=left width="20%">&nbsp;</TD>
      <TD align=right width="20%">September 30, </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left ><B>Embedded </B><B>conversion </B><B>option</B> </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="20%">At
        Inception </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="20%">2014 </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff >Risk&#150;free interest rate </TD>
      <TD align=right width="20%" bgColor=#e6efff>3.13% </TD>
      <TD align=right width="20%" bgColor=#e6efff>3.21% </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left >Expected life of options (years) </TD>
      <TD align=right width="20%">29.58 </TD>
      <TD align=right width="20%">29.48 </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff >Annualized volatility </TD>
      <TD align=right width="20%" bgColor=#e6efff>100.71% </TD>
      <TD align=right width="20%" bgColor=#e6efff>100.07% </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left >Stock price </TD>
      <TD align=right width="20%">$0.26 </TD>
      <TD align=right width="20%">$0.18 </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff >Dividend rate </TD>
      <TD align=right width="20%" bgColor=#e6efff>0.00% </TD>
      <TD align=right width="20%" bgColor=#e6efff>0.00% </TD>
    </TR>
  </TABLE>
</DIV>
<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=left >&nbsp;</TD>
      <TD align=left width="18%">&nbsp;</TD>
      <TD align=right width="18%">September 30, </TD>
      <TD align=right width="18%">Reclassification </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left ><B>Warrants</B> </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="18%">At
        Inception </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="18%">2013 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="18%">Date </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff >Risk&#150;free interest rate </TD>
      <TD align=right width="18%" bgColor=#e6efff>0.28% </TD>
      <TD align=right width="18%" bgColor=#e6efff>0.10% </TD>
      <TD align=right width="18%" bgColor=#e6efff>0.13% </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left >Expected life of options (years) </TD>
      <TD align=right width="18%">1.49 </TD>
      <TD align=right width="18%">1.25 </TD>
      <TD align=right width="18%">1.03 </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff >Annualized volatility </TD>
      <TD align=right width="18%" bgColor=#e6efff>81.57% </TD>
      <TD align=right width="18%" bgColor=#e6efff>77.51% </TD>
      <TD align=right width="18%" bgColor=#e6efff>107.62% </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left >Stock price </TD>
      <TD align=right width="18%">$0.61 </TD>
      <TD align=right width="18%">$0.65 </TD>
      <TD align=right width="18%">$0.25 </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff >Dividend rate </TD>
      <TD align=right width="18%" bgColor=#e6efff>0.00% </TD>
      <TD align=right width="18%" bgColor=#e6efff>0.00% </TD>
      <TD align=right width="18%" bgColor=#e6efff>0.00% </TD>
    </TR>
  </TABLE>
</DIV>
<P align=center>F-12<BR>
</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>Anavex Life Sciences Corp. <BR>
  Notes to the Consolidated
  Financial Statements <BR>
  September 30, 2014 and 2013 <BR>
  (Stated in US
  Dollars)&nbsp; &#150; Page 7</P>
<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 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>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, 2014 and
      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%">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. 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>Certain of the Company&#146;s embedded conversion features on
      debt and outstanding warrants are treated as derivative liabilities for
      accounting purposes under ASC 815 due to insufficient authorized shares to
      fully settle conversion features of the instruments if exercised. In this
      case, the Company utilizes the latest inception date sequencing method to
      reclassify outstanding instruments as derivative instruments. These
      contracts are recognized at fair value with changes in fair value
      recognized in earnings until such time as the conditions giving rise to
      such derivative liability classification have been settled.</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 derivative instruments do not trade in an active
      securities market. 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>
</TABLE>
<P align=center>F-13<BR>
</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>
  Notes to the Consolidated
  Financial Statements <BR>
  September 30, 2014 and 2013 <BR>
  (Stated in US
  Dollars)&nbsp; &#150; Page 8</P>
<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 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%">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><I>Recently Adopted Accounting
      Pronouncements</I></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 June 2014, the FASB issued Accounting Standards
      Updated No. 2014-10, "Development Stage Entities&#148; (&#147;ASU 2014-10&#148;) which
      removes the definition of a development stage entity from the Master
      Glossary of the Accounting Standards Codification, thereby removing the
      financial reporting distinction between development stage entities and
      other reporting entities from U.S. GAAP. In addition, the update
      eliminates the requirements for development stage entities to (1) present
      inception-to-date information in the statements of income, cash flows, and
      shareholder equity, (2) label the financial statements as those of a
      development stage entity, (3) disclose a description of the development
      stage activities in which the entity is engaged, and (4) disclose in the
      first year in which the entity is no longer a development stage entity
      that in prior years it had been in the development stage.</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>During the year ended September 30, 2014, the Company has
      elected to early adopt ASU 2014-10. The adoption of this ASU allowed the
      Company to remove the inception to date information and all references to
      development stage.</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><I>Recent Accounting Pronouncements Not Yet
      Adopted</I></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 June 2014, the FASB issued ASU No. 2014-12, Accounting
      for Share-Based Payments When the Terms of an Award Provide That a
      Performance Target Could Be Achieved after the Requisite Service Period
      ("ASU 2014-12"). ASU 2014-12 requires that a performance target that
      affects vesting, and that could be achieved after the requisite service
      period, be treated as a performance condition. As such, the performance
      target should not be reflected in estimating the grant date fair value of
      the award. This update further clarifies that compensation cost should be
      recognized in the period in which it becomes probable that the performance
      target will be achieved and should represent the compensation cost
      attributable to the period(s) for which the requisite service has already
      been rendered. The amendments in this ASU are effective for annual periods
      and interim periods within those annual periods beginning after December
      15, 2015. The Company is currently evaluating the impact this guidance
      will have on its financial condition, results of operations and cash
      flows.</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 August 2014, the FASB issued ASU No. 2014-15,
      Disclosure of Uncertainties about an Entity&#146;s Ability to Continue as a
      Going Concern (&#147;ASU 2014-15&#148;). ASU 2014-15 will explicitly require
      management to assess an entity&#146;s ability to continue as a going concern,
      and to provide related footnote disclosure in certain circumstances. The
      new standard will be effective for all entities in the first annual period
      ending after December 15, 2016. The Company is currently evaluating the
      impact this guidance will have on its financial condition, results of
      operations and cash flows.</P></TD>
  </TR>
</TABLE>
<P align=center>F-14<BR>
</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>
  Notes to the Consolidated
  Financial Statements <BR>
  September 30, 2014 and 2013 <BR>
  (Stated in US
  Dollars)&nbsp; &#150; Page 9</P>
<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 2 </TD>
    <TD align=left width="90%" ><U>Summary of Significant
      Accountin g 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="15%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">l) </TD>
    <TD><P align=justify>Recent Accounting Pronouncements &#150;
      (cont&#146;d)</P></TD>
  </TR>
</TABLE>
<P style="MARGIN-LEFT: 15%" align=justify><I>Recent Accounting Pronouncements
  Not Yet Adopted</I> &#150; (cont&#146;d)<I> </I></P>
<P style="MARGIN-LEFT: 15%" align=justify>In May, 2014, the FASB and the
  International Accounting Standards Board (IASB) issued a converged standard on
  revenue recognition from contracts with customers, ASU 2014-09 (Topic 606 and
  IFRS 15). This standard will supersede nearly all existing revenue recognition
  guidance. ASU 2014-09 is effective for fiscal years, and interim periods within
  those years, beginning after December 15, 2016. The Company is currently
  evaluating the impact this guidance will have on its financial condition,
  results of operations and cash flows. </P>
<P style="MARGIN-LEFT: 15%" align=justify>Other than noted above, the Company
  does not expect the adoption of recently issued accounting pronouncements to
  have a significant impact on our results of operations, financial position or
  cash flow. </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, 2014 </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 style="BORDER-BOTTOM: #000000 1px solid" 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>3,015 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="15%"
    bgColor=#e6efff>768 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="15%"
    bgColor=#e6efff>2,247 </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, 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 style="BORDER-BOTTOM: #000000 1px solid" 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%">Cost </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="15%">Depreciation </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="15%">Net </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>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="15%"
    bgColor=#e6efff>5,631 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
     bgColor=#e6efff>$</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>&#150; </TD>
    <TD align=left width="2%"
  bgColor=#e6efff>&nbsp;</TD>
  </TR>
</TABLE>
<P align=center>F-15<BR>
</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>
  Notes to the Consolidated
  Financial Statements <BR>
  September 30, 2014 and 2013 <BR>
  (Stated in US
  Dollars)&nbsp; &#150; Page 10</P>
<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>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 style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="12%">2014 </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%">2013 </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 December 31, 2012
      with a principal balance of $89,618 (CDN $100,000) bearing interest at 12%
      per annum, due on September 30, 2014 </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>89,618 </TD>
    <TD vAlign=bottom align=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 align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD>&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 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 $77,679 (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>77,679 </TD>
    <TD vAlign=bottom align=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 align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD>&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 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 $24,768 (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>24,768 </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" 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%">192,065 </TD>
    <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 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>(192,065</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" 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%">&#150; </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%">&#150; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" 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 $89,618 (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 was
  extended to September 30, 2014. Subsequent to September 30, 2014, the Company
  repaid this note. </P>
<P style="MARGIN-LEFT: 10%" align=justify>On January 9, 2013, the Company issued
  two (2) promissory notes (the &#147;Secured Notes&#148;); </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%">a) </TD>
    <TD><P align=justify>The Company issued a promissory note in the amount of
      $77,679 (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
      $24,768 (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 align=center>F-16<BR>
</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>
  Notes to the Consolidated
  Financial Statements <BR>
  September 30, 2014 and 2013 <BR>
  (Stated in US
  Dollars)&nbsp; &#150; Page 11</P>
<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%" ><P align=justify><U>Promissory Notes Payable </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>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></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>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></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 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
      September 30, 2014 or 2013, as the Company does not consider these amounts
      to be legally enforceable. </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><B>Extinguishment of promissory notes payable and
      accounts payable </B></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, 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%" ><P align=justify>The promissory note and accounts payable settlements are
      summarized as follows: </P></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 style="BORDER-BOTTOM: #000000 0px solid" 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 width="23%" align=center >&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%">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
      >Date of Note </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%">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%">FairValue </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 style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=right bgColor=#e6efff >Promissory notes payable </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>
      <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="2%" >&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="2%"  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="2%" >&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="2%"  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="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%">50,000 </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="12%">699 </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="12%">126,747 </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="12%">95,377 </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="12%">44,678 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=right bgColor=#e6efff >&nbsp;</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>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>&nbsp;</TD>
      <TD align=right width="12%" bgColor=#e6efff>506,777 </TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR>
      <TD align=right >&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>
      <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="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>1,108,506 </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="12%"
    bgColor=#e6efff>&#150; </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="12%"
    bgColor=#e6efff>2,771,265 </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="12%"
    bgColor=#e6efff>2,085,386 </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="12%"
    bgColor=#e6efff>976,880 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR>
      <TD align=right >&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>
      <TD width="1%" >&nbsp;</TD>
      <TD width="12%">&nbsp;</TD>
      <TD width="2%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=right bgColor=#e6efff >&nbsp;</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>1,657,506 </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>$</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>26,058 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>4,208,910 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>3,167,221 </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>1,483,657 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    </TR>
  </TABLE>
</DIV>
<P align=center>F-17<BR>
</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>
  Notes to the Consolidated
  Financial Statements <BR>
  September 30, 2014 and 2013 <BR>
  (Stated in US
  Dollars)&nbsp; &#150; Page 12</P>
<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>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>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 Black Scholes option pricing model with the following
      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="60%" border=0>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff>Stock price </TD>
      <TD align=right width="35%" bgColor=#e6efff >$0.61 </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left>Exercise price </TD>
      <TD align=right width="35%" >$0.75 </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff>Expected volatility </TD>
      <TD align=right width="35%" bgColor=#e6efff >81.57% </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left>Risk&#150;free discountrate </TD>
      <TD align=right width="35%" >0.28% </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff>Expected term </TD>
      <TD align=right width="35%" bgColor=#e6efff >1.49years </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left>Expected dividend yield </TD>
      <TD align=right width="35%" >0.00% </TD>
    </TR>
  </TABLE>
</DIV>
<P style="MARGIN-LEFT: 10%" align=justify>The loss on settlement of debt was
  recorded on the statement of operations for the year ended September 30, 2013
  and 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 style="MARGIN-LEFT: 10%" align=justify>As discussed in Note 5, the warrants
  issued were required to be accounted for as derivative liabilities pursuant to
  the guidance of ASC 815. Consequently, the Company allocated the proceeds from
  the issuance of the units first to the warrants, at their fair value of $600,000
  with the remainder of $2,567,220 being allotted to equity. The fair value of the
  warrants of $600,000 was determined based on the binomial option pricing model
  using the following assumptions: risk-free interest rate 0.28%, expected life
  1.49 years, expected volatility 81.57%, dividend yield 0.00% .</P>
<P align=center>F-18<BR>
</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_F-18></A>
<P align=justify>Anavex Life Sciences Corp. <BR>
  Notes to the Consolidated
  Financial Statements <BR>
  September 30, 2014 and 2013 <BR>
  (Stated in US
  Dollars)&nbsp; &#150; Page 13</P>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left>Note 5 </TD>
    <TD align=left width="90%" ><U>Non-interest Bearing
      Liabilities</U> </TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%"  >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="90%" >Non-interest bearing liabilities
      consists of the following: </TD>
  </TR>
</TABLE>
<BR>
<DIV align=center>
  <TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="80%" border=0>
    <TR vAlign=top>
      <TD align=left >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="17%">2014 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="2%"
    >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="1%"
    >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="17%">2013 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff >Senior Convertible Debentures </TD>
      <TD align=left width="1%"  bgColor=#e6efff>$</TD>
      <TD align=right width="17%" bgColor=#e6efff>263,727 </TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>$</TD>
      <TD align=right width="17%" bgColor=#e6efff>&#150; </TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left >Derivative Financial Instruments </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="17%">5,456,000 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="17%">904,000 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
     bgColor=#e6efff>$</TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="17%"
    bgColor=#e6efff>5,719,727 </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>904,000 </TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    </TR>
  </TABLE>
</DIV>
<P style="MARGIN-LEFT: 10%" align=justify><B>Senior Convertible Debentures </B></P>
<DIV align=center>
  <TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="80%" border=0>
    <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">2014 </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">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 width="1%" valign="bottom" >&nbsp;</TD>
      <TD width="17%" valign="bottom">&nbsp;</TD>
      <TD width="2%" valign="bottom" >&nbsp;</TD>
      <TD width="1%" valign="bottom" >&nbsp;</TD>
      <TD width="17%" valign="bottom">&nbsp;</TD>
      <TD width="2%" valign="bottom" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" bgColor=#e6efff >Senior Convertible
        Debentures, non&#150;interest bearing, unsecured, due March 18, 2044 </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="17%" bgColor=#e6efff>7,446,044 </TD>
      <TD vAlign=bottom align=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>&#150; </TD>
      <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" >Less: Debt Discount </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%">(7,182,317</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%">&#150; </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 >Total carrying value </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="17%" bgColor=#e6efff>263,727 </TD>
      <TD vAlign=bottom align=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>&#150; </TD>
      <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" >Less: current portion </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%">&#150; </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%">&#150; </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 >Long term liability </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="17%" bgColor=#e6efff>263,727 </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="17%" bgColor=#e6efff>&#150; </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    </TR>
  </TABLE>
</DIV>
<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="80%" border=0>
    <TR vAlign=top>
      <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%">Non&#150; </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 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%">Purchasers </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%">purchasers </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%">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.
  The Debentures were convertible, in whole or in part, at the option of the
  holder 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. The Conversion Price was later
  amended to $0.25 per share, as set forth below. </P>
<P align=center>F-19<BR>
</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>
  Notes to the Consolidated
  Financial Statements <BR>
  September 30, 2014 and 2013 <BR>
  (Stated in US
  Dollars)&nbsp; &#150; Page 14</P>
<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 5 </TD>
    <TD align=left width="90%" ><P align=justify><U>Non-interest Bearing Liabilities </U>&#150; (cont&#146;d) </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><B>Senior Convertible Debentures </B>&#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>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>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR>
    <TD></TD>
    <TD 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>&nbsp;</TD>
    <TD width="90%" >&nbsp;</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 was
      being amortized using the effective interest method over the term of the
      Debentures. During the year ended September 30, 2014, the Company recorded
      accretion expense of $1,914,433 (2013: $Nil) in respect of the accretion
      of this discount, which is included in other financing related charges and
      adjustments on the consolidated statement of operations. </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 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 $788,712, 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 year ended September 30, 2014, the Company had recorded
      financing expense of $13,044 (2013: $Nil) in respect of the amortization
      of these charges. </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 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="70%" border=0>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff>Risk-free interest rate </TD>
      <TD align=left width="35%" bgColor=#e6efff >1.56% </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left>Expected life (years) </TD>
      <TD align=left width="35%" >5.00 </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff>Expected volatility </TD>
      <TD align=left width="35%" bgColor=#e6efff >97.16% </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left>Dividend yields </TD>
      <TD align=left width="35%" >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 (the &#147;RRA&#148;) 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>On July 23, 2014, the registration
  statement was declared effective by the SEC. </P>
<P align=center>F-20<BR>
</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>
  Notes to the Consolidated
  Financial Statements <BR>
  September 30, 2014 and 2013 <BR>
  (Stated in US
  Dollars)&nbsp; &#150; Page 15</P>
<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 5 </TD>
    <TD align=left width="90%" ><U>Non-interest Bearing
      Liabilities </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%" ><B>Senior Convertible Debentures </B>&#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%" ><U>Amendment Agreements</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>On August 25, 2014, the Company entered into amendment
      agreements with each Purchaser, pursuant to which all provisions regarding
      liquidating damages and the accrual of damages with respect to the
      obligations for, and rights enforceable against, the Company, were
      eliminated from the RRAs. As consideration for entering into the amendment
      agreements and for the Purchasers agreeing to forego an amount of $459,912
      in liquidating damages that had accrued and were accruing pursuant to the
      terms of the original RRAs, the Company agreed to adjust the fixed
      conversion price of the remaining outstanding debentures from $0.30 per
      share to $0.25 per share (the &#147;Debenture Amendment&#148;). </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 assessed the guidance under ASC 470-60 <I>Troubled Debt Restructurings</I> and determined that this guidance did
      not apply to the Debenture Amendment. The Debenture Amendment was
      considered a substantial change in the terms of the debentures pursuant to
      ASC 470-50 <I>Modifications and Extinguishments </I>and accordingly, the
      Company was required to apply debt extinguishment accounting.
      Consequently, the Company calculated a net non-cash loss on extinguishment
      of debt of $8,099,137 as the premium of the aggregate fair value of the
      amended debentures over their aggregate carrying values of $906
      immediately prior to the Debenture Amendment and the gain from the
      forgiveness of accrued liquidating damages of $459,912. This amount is
      included in other financing related charges and adjustments on the
      consolidated statement of operations 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></TD>
    <TD align=left width="90%" ><P align=justify>The Company calculated the fair value of the amended
      Debentures by discounting future cash flows using rates representative of
      current borrowing rates for debt instruments without a conversion feature
      and by using the binomial option pricing model to determine the fair value
      of the conversion features, using the following 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="70%" border=0>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff>Risk-free interest rate </TD>
      <TD align=left width="25%" bgColor=#e6efff >3.13% </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left>Expected life (years) </TD>
      <TD align=left width="25%" >29.58 </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff>Expected volatility </TD>
      <TD align=left width="25%" bgColor=#e6efff >100.71% </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left>Dividend yields </TD>
      <TD align=left width="25%" >0.00% </TD>
    </TR>
  </TABLE>
</DIV>
<P style="MARGIN-LEFT: 10%" align=justify>The net loss was recorded as part of
  financing related charges and adjustments in the consolidated statement of
  operations during the year ended September 30, 2014. In addition, in accordance
  with debt extinguishment accounting, remaining unamortized financing costs of
  $1,110,568 associated with the original Debentures were immediately amortized
  through earnings upon entering into the amendments. This amount is also included
  in other financing related charges and adjustments in the consolidated statement
  of operations for the year ended September 30, 2014. </P>
<P align=center>F-21<BR>
</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>
  Notes to the Consolidated
  Financial Statements <BR>
  September 30, 2014 and 2013 <BR>
  (Stated in US
  Dollars)&nbsp; &#150; Page 16</P>
<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 5 </TD>
    <TD align=left width="90%" ><U>Non-interest Bearing
      Liabilities </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%" ><B>Senior Convertible Debentures </B>&#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>During the year ended September 30, 2014, the Company
      issued an aggregate of 8,940,139 shares of common stock pursuant to
      conversion notices received from the Purchasers 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>
    <TD width="10%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">(a) </TD>
    <TD><P align=justify>An aggregate of 6,378,426 shares of common stock were
      issued at a conversion price of $0.30 per share pursuant to the conversion
      of $1,913,527 in outstanding principal amounts due under the Debentures,
      prior to the Debenture Amendment.</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>An aggregate of 2,561,713 shares of common stock were
      issued at a conversion price of $0.25 per share pursuant to the conversion
      of $640,428 in outstanding principal amounts due under the Debentures,
      subsequent to the Debenture Amendments.</P></TD>
  </TR>
</TABLE>
<P style="MARGIN-LEFT: 10%" align=justify>As a result of the bifurcation of the
  embedded conversion option subsequent to the Debenture Amendments as discussed
  above, for accounting purposes, two instruments are considered outstanding and,
  upon exercise of the contractual conversion option, extinguishment accounting
  has been applied. Consequently, the embedded conversion feature is marked to
  fair value at the conversion date and the shares issued pursuant to conversion
  are recorded at their fair value on the date of issuance, determined with
  reference to the quoted market price of the Company&#146;s shares on the issuance
  date. The resulting difference is recorded as a gain or loss on the consolidated
  statement of operations. During the year ended September 30, 2014, the Company
  recorded $19,290 (2013: $Nil) in respect of net gains on these conversion of the
  Debentures. </P>
<P style="MARGIN-LEFT: 10%" align=justify><B>Embedded conversion options and
  warrants </B></P>
<P style="MARGIN-LEFT: 10%" align=justify>The following table presents the
  components of the Company&#146;s embedded conversion options and warrants being
  accounted for as derivative liabilities. These instruments have no observable
  market data and are derived using an option pricing model measured at fair value
  on a recurring basis, using Level 3 inputs to the fair value hierarchy:</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD width="10%"  >&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD colspan="4" align=center>September 30, </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="12%">2014 </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="12%">2013 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Warrants </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>&#150; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>904,000 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left>Embedded conversion features </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">5,456,000 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">&#150; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Derivative financial instruments </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="12%"
    bgColor=#e6efff>5,456,000 </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>904,000 </TD>
    <TD align=left width="2%"
  bgColor=#e6efff>&nbsp;</TD>
  </TR>
</TABLE>
<P style="MARGIN-LEFT: 10%" align=justify>These derivative financial instruments
  arise as a result of applying ASC 815 <I>Derivatives and Hedging</I> (&#147;ASC
  815&#148;), which requires the Company to make a determination whether an
  equity-linked financial instrument, or embedded feature, is indexed to the
  entity&#146;s own stock. This guidance applies to any freestanding financial
  instrument or embedded features that have the characteristics of a derivative,
  and to any freestanding financial instruments that are potentially settled in an
  entity&#146;s own stock. </P>
<P align=center>F-22<BR>
</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>
  Notes to the Consolidated
  Financial Statements <BR>
  September 30, 2014 and 2013 <BR>
  (Stated in US
  Dollars)&nbsp; &#150; Page 17</P>
<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 5 </TD>
    <TD align=left width="90%"><U>Non-interest Bearing Liabilities </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%"><B>Embedded conversion options and warrants </B>&#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>During the year ended September 30, 2014, the Company
      issued debentures with fixed price embedded conversion features and,
      subsequent to certain amendments as discussed above, the Company did not
      have a sufficient number of authorized and available shares of common
      stock to fully settle the conversion feature of such instruments if
      exercised. As such, the Company was required to account for these
      instruments as derivative financial instruments. On the commitment date of
      the related convertible debentures, the Company recorded a debt discount
      to the extent of the fair value of the embedded conversion features
      required to be accounted for as liabilities under 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>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 as a
      result of certain features embedded in those instruments. During the year
      ended September 30, 2014, the Company amended the terms of these common
      stock purchase warrants. As of the modification date, these warrants were
      no longer required to be accounted for as liabilities. 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>As a result of the application of ASC 815, the Company
      has recorded these liabilities at their fair values 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 colspan="4" align=center>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 style="BORDER-BOTTOM: #000000 1px solid" align=center width="17%">2014 </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%">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="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>904,000 </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>&#150; </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 </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="17%">8,277,000 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="17%">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 during the period </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="17%" bgColor=#e6efff>(2,956,000</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>(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 align=left width="1%">&nbsp;</TD>
    <TD align=right width="17%">(221,000</TD>
    <TD align=left width="2%">) </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="17%">&#150; </TD>
    <TD align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Transfer to equity upon exercise </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>(548,000</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>&#150; </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</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%">5,456,000 </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%">904,000 </TD>
    <TD align=left width="2%">&nbsp;</TD>
  </TR>
</TABLE>
<P style="MARGIN-LEFT: 10%" align=justify>The embedded conversion features and
  warrants accounted for as derivative financial instruments have no observable
  market and the Company estimated their fair values at September 30, 2014 and
  2013 using the binomial option pricing model based on the following weighted
  average management assumptions: </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="20%"><U>2014</U> </TD>
      <TD align=left width="20%"><U>2013</U> </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff>Risk-free interest rate </TD>
      <TD align=left width="20%" bgColor=#e6efff>3.21% </TD>
      <TD align=left width="20%" bgColor=#e6efff>0.10% </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left>Expected life (years) </TD>
      <TD align=left width="20%">29.48 </TD>
      <TD align=left width="20%">1.25 </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff>Expected volatility </TD>
      <TD align=left width="20%" bgColor=#e6efff>100.07% </TD>
      <TD align=left width="20%" bgColor=#e6efff>77.51% </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left>Stock price </TD>
      <TD align=left width="20%">$0.184 </TD>
      <TD align=left width="20%">$0.65 </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff>Dividend yields </TD>
      <TD align=left width="20%" bgColor=#e6efff>0.00% </TD>
      <TD align=left width="20%" bgColor=#e6efff>0.00% </TD>
    </TR>
  </TABLE>
</DIV>
<P align=center>F-23<BR>
</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>
  Notes to the Consolidated
  Financial Statements <BR>
  September 30, 2014 and 2013 <BR>
  (Stated in US
  Dollars)&nbsp; &#150; Page 18</P>
<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 6 </TD>
    <TD align=left width="90%" ><U>Capital Stock</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>As at September 30, 2014, the Company&#146;s authorized share
      capital, consisting of 150,000,000 share of common stock, was insufficient
      to fully settle the conversion or exercise of all outstanding convertible
      debentures, stock purchase warrants and stock options at that date. As a
      result, and in accordance with ASC 815, the Company has recorded
      derivative liabilities in connection with certain embedded conversion
      options contained in convertible debentures outstanding at September 30,
      2014, as more fully described in Note 5. </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>Year ended September 30, 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>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>Year ended September 30, 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 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 an additional common
      share at $0.75 per share until July 5, 2018. (Note 4). </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 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. As
      discussed in Note 5, the warrants issued were required to be accounted for
      as derivative liabilities pursuant to the guidance of ASC 815.
      Consequently, the Company allocated the proceeds from the issuance of the
      units first to the warrants, at their fair value of $313,000 with the
      remainder of $565,453 being allotted to equity. The fair value of the
      warrants of $313,000 was determined based on the binomial option pricing
      model using the following assumptions: risk-free interest rate 0.28%,
      expected life 1.49 years, expected volatility 81.57%, dividend yield
      0.00%. </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 addition, the Company paid finder&#146;s fees of $95,680 in
      connection with the issuance of the units, consisting of cash of $89,680
      and $6,000 in warrants to purchase 43,923 shares of common stock at $0.75
      per share until July 5, 2018 in connection with this private placement.
      The fair value of the warrants of $6,000 was determined using the binomial
      option pricing model using the following assumptions: risk-free interest
      rate 0.28%, expected life 1.49 years, expected volatility 81.57%, dividend
      yield 0.00%. In addition, the Company incurred share issuance costs of
      $16,494. </P></TD>
  </TR>
</TABLE>
<P align=center>F-24<BR>
</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>
  Notes to the Consolidated
  Financial Statements <BR>
  September 30, 2014 and 2013 <BR>
  (Stated in US
  Dollars)&nbsp; &#150; Page 19</P>
<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 6 </TD>
    <TD align=left width="90%" ><U>Capital Stock </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%" >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>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 7 </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>
  <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>
</TABLE>
<P align=center>F-25<BR>
</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>
  Notes to the Consolidated
  Financial Statements <BR>
  September 30, 2014 and 2013 <BR>
  (Stated in US
  Dollars)&nbsp; &#150; Page 20</P>
<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 7 </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 incurred a net $73,787 in direct expenses in
      connection with the Purchase Agreement and registration statement, of
    which $71,335 was incurred during the year ended September 30, 2013. These
      were recorded as share issuance costs as a charge against additional paid
      in capital during the year ended September 30, 2014 and during the nine
      months ended June 30, 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 year ended September 30, 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>
  <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></TD>
    <TD align=left width="90%"><P align=justify>During the year ended September 30, 2014, the Company was
      charged general and administrative expenses totaling $1,041,140 in respect
      of directors fees, management bonuses and share and stock option based
      compensation charges paid or accrued to directors and officers of the
      Company, inclusive of amounts noted below (2013: $81,072 in respect of
      consulting fees paid to directors, officers, and a company controlled by a
      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>As at September 30, 2014, included in accounts payable
      and accrued liabilities was $28,232 (2013: $30,447) owing to directors and
      officers of the Company for director fees and reimbursable expenses, and a
      former director and officer of the Company for unpaid fees. </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. 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 year ended September
      30, 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
  year ended September 30, 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&#146;s shares on the commitment
  date. This amount has been included in common stock to be issued at September
  30, 2014.</P>
<P align=center>F-26<BR>
</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>
  Notes to the Consolidated
  Financial Statements <BR>
  September 30, 2014 and 2013 <BR>
  (Stated in US
  Dollars)&nbsp; &#150; Page 21</P>
<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 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="70%" border=0>
    <TR vAlign=top>
      <TD align=left>&nbsp;</TD>
      <TD align=left width="1%">&nbsp;</TD>
      <TD align=left width="17%">&nbsp;</TD>
      <TD align=left width="2%">&nbsp;</TD>
      <TD align=left width="1%">&nbsp;</TD>
      <TD align=center width="17%">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 align=left width="17%">&nbsp;</TD>
      <TD align=left width="2%">&nbsp;</TD>
      <TD align=left width="1%">&nbsp;</TD>
      <TD align=center width="17%">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 align=left width="17%">&nbsp;</TD>
      <TD align=left width="2%">&nbsp;</TD>
      <TD align=left width="1%">&nbsp;</TD>
      <TD align=center width="17%">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 style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="17%">Number of Shares </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=center
      width="17%">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, October 1, 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=center width="17%" bgColor=#e6efff>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%">$</TD>
      <TD align=center width="17%">2.56 </TD>
      <TD align=left width="2%">&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff>Issued </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="17%"
    bgColor=#e6efff>6,448,966 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>$</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="17%"
    bgColor=#e6efff>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%">$</TD>
      <TD align=center width="17%">0.75 </TD>
      <TD align=left width="2%">&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff>Expired </TD>
      <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD align=right width="17%" bgColor=#e6efff>(2,700,513</TD>
      <TD align=left width="2%" bgColor=#e6efff>) </TD>
      <TD align=left width="1%" bgColor=#e6efff>$</TD>
      <TD align=center width="17%" bgColor=#e6efff>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 1px solid" align=left
    width="1%">&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="17%">68,466,666 </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%">$</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="17%">0.36 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff>Balance, September 30, 2014 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="17%"
    bgColor=#e6efff>74,915,632 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>$</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="17%"
    bgColor=#e6efff>0.40 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    </TR>
  </TABLE>
</DIV>
<P style="MARGIN-LEFT: 15%" align=justify>At September 30, 2014, the Company has
  74,915,632 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=right>Number </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="21%">Exercise Price </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="35%">Expiry Date </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=right bgColor=#e6efff>6,448,966 </TD>
      <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%" bgColor=#e6efff>$</TD>
      <TD align=right width="21%" bgColor=#e6efff>0.75 </TD>
      <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD align=right width="35%" bgColor=#e6efff>July 5, 2018 </TD>
      <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=right>500,000 </TD>
      <TD align=left width="2%">&nbsp;</TD>
      <TD align=left width="1%">$</TD>
      <TD align=right width="21%">0.75 </TD>
      <TD align=left width="2%">&nbsp;</TD>
      <TD align=left width="1%">&nbsp;</TD>
      <TD align=right width="35%">February 14, 2019 </TD>
      <TD align=left width="2%">&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=right bgColor=#e6efff>120,000 </TD>
      <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%" bgColor=#e6efff>$</TD>
      <TD align=right width="21%" bgColor=#e6efff>1.00 </TD>
      <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD align=right width="35%" bgColor=#e6efff>February 24, 2019 </TD>
      <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=right>33,833,333 </TD>
      <TD align=left width="2%">&nbsp;</TD>
      <TD align=left width="1%">$</TD>
      <TD align=right width="21%">0.30 </TD>
      <TD align=left width="2%">&nbsp;</TD>
      <TD align=left width="1%">&nbsp;</TD>
      <TD align=right width="35%">March 13, 2019 </TD>
      <TD align=left width="2%">&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=right bgColor=#e6efff>33,833,333 </TD>
      <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%" bgColor=#e6efff>$</TD>
      <TD align=right width="21%" bgColor=#e6efff>0.42 </TD>
      <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD align=right width="35%" bgColor=#e6efff>March 13, 2019 </TD>
      <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>180,000 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
      <TD align=left width="1%">$</TD>
      <TD align=right width="21%">0.31 </TD>
      <TD align=left width="2%">&nbsp;</TD>
      <TD align=left width="1%">&nbsp;</TD>
      <TD align=right width="35%">May 31, 2019 </TD>
      <TD align=left width="2%">&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD style="BORDER-BOTTOM: #000000 3px double" align=right
      bgColor=#e6efff>74,915,632 </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="21%" 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="35%" bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="2%" bgColor=#e6efff>&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-27<BR>
</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>
  Notes to the Consolidated
  Financial Statements <BR>
  September 30, 2014 and 2013 <BR>
  (Stated in US
  Dollars)&nbsp; &#150; Page 22</P>
<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 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 granted options 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 years ended September 30, 2014 and 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 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%">Number of </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 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 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%">Exercise Price </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="15%">Date
      fair value </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff >Outstanding at October 1,
      2012 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="15%" bgColor=#e6efff>1,775,000 </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>2.94 </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 >Expired </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="15%">(550,000</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="15%">3.86 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="15%">&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff >Forfeited </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="15%" bgColor=#e6efff>(150,000</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="15%" bgColor=#e6efff>3.72 </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 >Granted </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%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="15%">0.40 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="15%">0.50 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff >Outstanding 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>3,075,000 </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>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="15%"
    bgColor=#e6efff>1.26 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="15%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left >Expired </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="15%">(705,000</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="15%">2.70 </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>800,000 </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>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="15%"
    bgColor=#e6efff>0.32 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="15%" bgColor=#e6efff>0.25 </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, 2014 </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%">3,170,000 </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%"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="15%">0.70 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="15%">&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff >Exercisable at September 30,
      2014 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="15%"
    bgColor=#e6efff>2,100,000 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="15%"
    bgColor=#e6efff>0.56 </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 >Exercisable 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%">2,305,000 </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%">0.79 </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>
</TABLE>
<P align=center>F-28<BR>
</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>
  Notes to the Consolidated
  Financial Statements <BR>
  September 30, 2014 and 2013 <BR>
  (Stated in US
  Dollars)&nbsp; &#150; Page 23</P>
<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 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, 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="6" 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="17%" 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=left width="2%">&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=center nowrap>&nbsp;</TD>
      <TD width="1%" align=center nowrap>&nbsp;</TD>
      <TD width="5%" 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>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="17%" 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=left 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="5%" 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="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="17%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid">ExpiryDate </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=left
    width="2%">&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=right bgColor=#e6efff>&nbsp; &nbsp; &nbsp;100,000 </TD>
      <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD align=center width="5%" bgColor=#e6efff><SUP>(1)</SUP></TD>
      <TD align=center width="2%" bgColor=#e6efff></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=right width="11%" bgColor=#e6efff>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="17%" 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>&#150; </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>1.50 </TD>
      <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=right>&nbsp; &nbsp; &nbsp;270,000 </TD>
      <TD align=left width="1%">&nbsp;</TD>
      <TD align=center width="5%"><SUP>(2)</SUP></TD>
      <TD align=center width="2%"></TD>
      <TD align=left width="1%">&nbsp;</TD>
      <TD align=right width="11%">&#150; </TD>
      <TD align=left width="2%">&nbsp;</TD>
      <TD align=left width="1%">$</TD>
      <TD align=right width="11%">3.00 </TD>
      <TD align=left width="2%">&nbsp;</TD>
      <TD align=left width="1%">&nbsp;</TD>
      <TD align=right width="17%">February 8, 2017 </TD>
      <TD align=left width="2%">&nbsp;</TD>
      <TD align=left width="1%">&nbsp;</TD>
      <TD align=right width="11%">&#150; </TD>
      <TD align=left width="2%">&nbsp;</TD>
      <TD align=left width="1%">&nbsp;</TD>
      <TD align=right width="11%">2.36 </TD>
      <TD align=left width="2%">&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=right bgColor=#e6efff>2,000,000 </TD>
      <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD align=center width="5%" bgColor=#e6efff><SUP>(3)</SUP></TD>
      <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD align=right width="11%" bgColor=#e6efff>2,000,000 </TD>
      <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%" bgColor=#e6efff>$</TD>
      <TD align=right width="11%" bgColor=#e6efff>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="17%" bgColor=#e6efff>July 5 ,2023 </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>&#150; </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>8.77 </TD>
      <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=right>&nbsp; &nbsp; &nbsp;300,000 </TD>
      <TD align=left width="1%">&nbsp;</TD>
      <TD align=center width="5%"><SUP>(4)</SUP></TD>
      <TD align=center width="2%"></TD>
      <TD align=left width="1%">&nbsp;</TD>
      <TD align=right width="11%">&#150; </TD>
      <TD align=left width="2%">&nbsp;</TD>
      <TD align=left width="1%">$</TD>
      <TD align=right width="11%">0.30 </TD>
      <TD align=left width="2%">&nbsp;</TD>
      <TD align=left width="1%">&nbsp;</TD>
      <TD align=right width="17%">May 7, 2024 </TD>
      <TD align=left width="2%">&nbsp;</TD>
      <TD align=left width="1%">&nbsp;</TD>
      <TD align=right width="11%">&#150; </TD>
      <TD align=left width="2%">&nbsp;</TD>
      <TD align=left width="1%">&nbsp;</TD>
      <TD align=right width="11%">9.61 </TD>
      <TD align=left width="2%">&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      bgColor=#e6efff>&nbsp; &nbsp; &nbsp;500,000 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="5%"
    bgColor=#e6efff><SUP>(5)</SUP></TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="2%"
    bgColor=#e6efff></TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="11%"
    bgColor=#e6efff>&#150; </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>$</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="11%"
    bgColor=#e6efff>0.33 </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="17%" bgColor=#e6efff>May 8, 2024 </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>&#150; </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>9.61 </TD>
      <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD style="BORDER-BOTTOM: #000000 3px double" align=right>3,170,000 </TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" align=left
    width="1%">&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" align=center
      width="5%">&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" align=center
    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%">2,100,000 </TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" 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=left width="11%">&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
      <TD align=left width="1%">&nbsp;</TD>
      <TD align=left width="17%">&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%">&#150;</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, 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 September 30, 2014 and September 30, 2013, these
      options had fully vested. These options were granted during the year ended
      September 30, 2011 and vested over a period of one year from the date of
      grant. 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, 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 September 30, 2014 and 2013, none of these options
      had 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>(3)</SUP> </TD>
    <TD><P align=justify>As of September 30, 2014 and 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 year ended September 30,
      2014 (2013: $1,002,500) in connection with these options. These amounts
      have been included in general and administrative expenses on the Company&#146;s
      statement of operations.</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 September 30, 2014 none of these options had
      vested. These options were issued during the year ended September 30, 2014
      and vest annually over a three year period commencing on the first
      anniversary of the date of the grant. The Company recognized stock based
      compensation expense of $9,252 during the year ended September 30, 2014,
      (2013: $Nil) in connection with these options. These amounts have been
      included in general and administrative expenses on the Company&#146;s statement
      of operations.</P></TD>
  </TR>
</TABLE>
<P align=center>F-29<BR>
</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>
  Notes to the Consolidated
  Financial Statements <BR>
  September 30, 2014 and 2013 <BR>
  (Stated in US
  Dollars)&nbsp; &#150; Page 24</P>
<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 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>(5)</SUP> </TD>
    <TD><P align=justify>As of September 30, 2014 none of these options had
      vested. These options were issued during the year ended September 30, 2014
      and vest annually over a four year period commencing on the first
      anniversary of the date of the grant. The Company recognized stock based
      compensation expense of $16,905 during the year ended September 30, 2014
      (2013: $Nil) in connection with these options.</P></TD>
  </TR>
</TABLE>
<P style="MARGIN-LEFT: 15%" align=justify>During the year ended September 30,
  2014, 705,000 options expired for which the Company had recognized stock-based
  compensation of $Nil (2013: $Nil) during the year ended September 30, 2014. </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="70%" border=0>
    <TR vAlign=top>
      <TD align=left >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="20%">2014 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="20%">2013 </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff >Risk&#150;free interestrate </TD>
      <TD align=right width="20%" bgColor=#e6efff>2.17% </TD>
      <TD align=right width="20%" bgColor=#e6efff>2.73% </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left >Expected life of options (years) </TD>
      <TD align=right width="20%">6.50 </TD>
      <TD align=right width="20%">10.0years </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff >Annualized volatility </TD>
      <TD align=right width="20%" bgColor=#e6efff>91.21% </TD>
      <TD align=right width="20%" bgColor=#e6efff>71.39% </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left >Dividend rate </TD>
      <TD align=right width="20%">0.00% </TD>
      <TD align=right width="20%">0.00% </TD>
    </TR>
  </TABLE>
</DIV>
<P style="MARGIN-LEFT: 15%" align=justify>There has been no stock-based
  compensation recognized in the financial statements for the year ended September
  30, 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>
<P align=center>F-30<BR>
</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>
  Notes to the Consolidated
  Financial Statements <BR>
  September 30, 2014 and 2013 <BR>
  (Stated in US
  Dollars)&nbsp; &#150; Page 25</P>
<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 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="12%"><U>2014</U> </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="12%"><U>2013</U> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff><I>Tax</I><I>rate</I> </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="12%" bgColor=#e6efff><I>34%</I> </TD>
    <TD align=center width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="12%" bgColor=#e6efff><I>34%</I> </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 vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Net operating loss carry forwards </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>8,270,000&nbsp; </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>7,141,000</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="12%">745,000 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%" >705,000 </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="12%" bgColor=#e6efff>(23,000</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>(19,000</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </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="12%">170,000</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%" >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="12%" bgColor=#e6efff>70,000</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>51,000 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left>Stock&#150;based compensation </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">441,000 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%" >633,000 </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="12%"
    bgColor=#e6efff>(9,673,000</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="12%"
     bgColor=#e6efff>(8,545,000</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="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>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="12%"
    bgColor=#e6efff>&#150; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="12%"
     bgColor=#e6efff>&#150; </TD>
    <TD align=left width="2%"
  bgColor=#e6efff>&nbsp;</TD>
  </TR>
</TABLE>
<P style="MARGIN-LEFT: 10%" align=justify>The provision for income taxes differ
  from the amount established using the statutory income tax rate as follows: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD width="10%"  >&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=center width="12%"><U>2014</U> </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="12%"><U>2013</U> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Income benefit at statutory rate of 34% </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>(3,865,000</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>(1,258,000</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 other rates </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">13,000 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">&#150; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Permanent differences </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 width="10%" >&nbsp;</TD>
    <TD align=left>&nbsp; &nbsp;Effect of stock based compensation </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">202,000 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">&#150; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Debt extinguishment </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>2,736,000 </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>501,000 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left>&nbsp; &nbsp;Mark&#150;to&#150;market deriative liability adjustment </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">(994,000</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">7,000 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Non&#150;deductible finance and
      accretion expenses </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>808,000 </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>&#150; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left>&nbsp; &nbsp;Other permanent differences </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">(16,000</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">(5,000</TD>
    <TD align=left width="2%" >) </TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Research and development tax credit </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>(26,000</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>(17,000</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left>Adjustment and true up to prior years' tax provision </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">14,000 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">(161,000</TD>
    <TD align=left width="2%" >) </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="12%"
    bgColor=#e6efff>1,128,000 </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="12%"
    bgColor=#e6efff>933,000 </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="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>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="12%"
    bgColor=#e6efff>&#150; </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>&#150; </TD>
    <TD align=left width="2%"
  bgColor=#e6efff>&nbsp;</TD>
  </TR>
</TABLE>
<P style="MARGIN-LEFT: 10%" align=justify>As of September 30, 2014, the Company
  had net operating loss carry-forwards of approximately $24,000,000 (2013:
  $21,000,000) 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 or Australia. </P>
<P align=center>F-31<BR>
</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>
  Notes to the Consolidated
  Financial Statements <BR>
  September 30, 2014 and 2013 <BR>
  (Stated in US
  Dollars)&nbsp; &#150; Page 26</P>
<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 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, 2014 and 2013. </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 and 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 the respective
      statutes of limitation expire. The Company is subject to tax examinations by tax
      authorities for all taxation years commencing on or after 2006. </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, 2014; </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 reclassified an amount of $221,000 into
      equity upon modification of the terms of certain derivative
      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 vAlign=top width="5%">b) </TD>
    <TD><P align=justify>the Company issued 6,378,426 shares of common stock of
      the Company pursuant to the conversion of $1,913,528 face value of
      convertible debentures at $0.30 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 vAlign=top width="5%">c) </TD>
    <TD><P align=justify>the Company issued 2,561,713 shares of common stock of
      the Company at a fair value of $551,120 pursuant to the conversion of
      convertible debentures at a conversion price of $0.25 per
      share.</P></TD>
  </TR>
</TABLE>
<P align=center>F-32<BR>
</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>
  Notes to the Consolidated
  Financial Statements <BR>
  September 30, 2014 and 2013 <BR>
  (Stated in US
  Dollars)&nbsp; &#150; Page 27</P>
<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 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, 2013; </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 of $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>
<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 12 </TD>
    <TD align=left width="90%" ><U>Subsequent Events</U> </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%" >Subsequent to September 30, 2014; </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>On October 22, 2014, the Company entered into a
      Securities Purchase Agreement (the &#147;Purchase Agreement&#148;) with one investor
      for an equity investment of $500,000 at a price of $0.25 per unit.
      Pursuant to the terms of the Purchase Agreement, the Company agreed to
      sell, and Lincoln Park agreed to purchase, 2,000,000 shares of common
      stock. In addition, the Company agreed to issue an aggregate of 4,000,000
      stock purchase warrants, of which 2,000,000 are exercisable at $0.30 per
      share and 2,000,000 are exercisable at $0.42 per share, each for a period
      of five years, subject to adjustment for stock splits, combinations, and
      reclassification events.</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 an aggregate of 5,484,668 shares of
      common stock pursuant to the conversion of $1,371,167 face value of
      convertible debentures at $0.25 per share.</P></TD>
  </TR>
</TABLE>
<P align=center></P>
<p align="center">F-33</p>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<P align=center><B>ANAVEX LIFE SCIENCES CORP. </B></P>
</P>
<P align=center>INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS </P>
<P align=center>March 31, 2015 </P>
<P align=center>(<U>Unaudited</U>) </P>
<P align=center>&nbsp;</P>
<P align=center>&nbsp;</P>
<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-2></A>
<P align=center><B>ANAVEX </B><B>LIFE </B><B>SCIENCES
</B><B>CORP.</B><BR>
INTERIM CONDENSED CONSOLIDATED BALANCE
SHEETS<BR>March 31, 2015 and September 30, 2014<BR>(<U>Unaudited</U>)<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 colspan="6" align=center ><B><U>ASSETS</U></B>   </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="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 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">2015    </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">2014    </TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Current </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 bgColor=#e6efff >&nbsp; &nbsp;Cash </TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>6,310,643 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>7,262,138 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; &nbsp;Prepaid expenses </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%">51,985 </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%">89,117 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >&nbsp; </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>6,362,628 </TD>
    <TD vAlign=bottom align=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>7,351,255 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >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="12%">1,749 </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%">2,247 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="12%" bgColor=#e6efff>6,364,377 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="12%" bgColor=#e6efff>7,353,502 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD >&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 colspan="6" align=center bgColor=#e6efff ><B><U>LIABILITIES</U></B>      </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD >&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 bgColor=#e6efff >Current </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>
  <TR vAlign=top>
    <TD align=left >&nbsp; &nbsp;Accounts payable and accrued
      liabilities </TD>
    <TD vAlign=bottom align=left width="1%" >$</TD>
    <TD vAlign=bottom align=right width="12%">1,437,939 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >$</TD>
    <TD vAlign=bottom align=right width="12%">1,249,084 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left 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="12%" bgColor=#e6efff>90,412 </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>192,065 </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 >&nbsp; </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">1,528,351 </TD>
    <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%">1,441,149 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >Non-interest bearing
      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>133,727 </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>5,719,727 </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 >&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%">1,662,078 </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%">7,160,876 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD 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>
    <TD >&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 colspan="6" align=center bgColor=#e6efff ><B><U>STOCKHOLDERS'
      </U></B><B><U>EQUITY</U></B>   </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD >&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 bgColor=#e6efff >Capital stock </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>
  <TR vAlign=top>
    <TD align=left
      >&nbsp;&nbsp;&nbsp;Authorized:&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;400,000,000
      common shares, par value $0.001 per
      share&nbsp;<BR>&nbsp;&nbsp;&nbsp;Issued and
      outstanding:&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;64,874,149
      common shares (September 30, 2014 - 47,200,237) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">64,876 </TD>
    <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%">47,201 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >Additional paid-in capital</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>59,082,325 </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="12%" bgColor=#e6efff>52,078,750 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Common stock to be issued </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">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="12%">640,000 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >Accumulated deficit </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>(55,084,902</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>(52,573,325</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD align=left >&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%">4,702,299 </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%">192,626 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left 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>6,364,377 </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>7,353,502 </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-35</p>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_F-3></A>
<P align=center><B>ANAVEX </B><B>LIFE </B><B>SCIENCES
</B><B>CORP.</B><BR>
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS<BR>for the three and six months ended March 31, 2015 and
2014<BR>(<U>Unaudited</U>)<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 colspan="4" align=center nowrap>Three months ended March 31, </TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD colspan="4" align=center nowrap>Six months ended March 31, </TD>
  <TD align=center 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="12%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid">2015    </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">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">2015    </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">2014    </TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Operating expenses </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>General and administrative - Notes 8 and 9    </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>451,193 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>903,015 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>903,246 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>1,207,443 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Research and development </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%">407,146 </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="12%">118,152 </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="12%">725,771 </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="12%">123,332 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR>
    <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>
    <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 align=left>Total operating expenses </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">(858,339</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">(1,021,167</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">(1,629,017</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">(1,330,775</TD>
    <TD align=left width="2%" >) </TD></TR>
  <TR>
    <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>
    <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 align=left>Other income (expenses) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Interest and finance income (expenses), net    </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>2,228 </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>(5,079</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>(74,781</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>(8,366</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>Financing related charges and adjustments </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">(912,357</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">(1,011</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">(874,706</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">681,989 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Foreign exchange gain (loss) </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>43,609 </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="12%"
    bgColor=#e6efff>8,397 </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="12%"
    bgColor=#e6efff>66,927 </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="12%"
    bgColor=#e6efff>(3,071</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>) </TD></TR>
  <TR>
    <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>
    <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>Total other income (expenses), net </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>(866,520</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" 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="12%"
    bgColor=#e6efff>2,307 </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="12%"
    bgColor=#e6efff>(882,560</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" 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="12%"
    bgColor=#e6efff>670,552 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <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>
    <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>Net loss and comprehensive loss for the
      period </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="12%"
    bgColor=#e6efff>(1,724,859</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
     bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="12%"
    bgColor=#e6efff>(1,018,860</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
     bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="12%"
    bgColor=#e6efff>(2,511,577</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
     bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="12%"
    bgColor=#e6efff>(660,223</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
     bgColor=#e6efff>) </TD></TR>
  <TR>
    <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>
    <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>Loss per share </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=left>&nbsp;Basic </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right
    width="12%">(0.03</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right
    width="12%">(0.03</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right
    width="12%">(0.05</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right
    width="12%">(0.02</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
    >) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp;Diluted </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="12%"
    bgColor=#e6efff>(0.03</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
     bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="12%"
    bgColor=#e6efff>(0.03</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
     bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="12%"
    bgColor=#e6efff>(0.05</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
     bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="12%"
    bgColor=#e6efff>(0.04</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
     bgColor=#e6efff>) </TD></TR>
  <TR>
    <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>
    <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>Weighted average number of shares
      outstanding </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=left>&nbsp;Basic </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">57,307,779 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">37,881,209 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">54,437,890 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">37,680,823 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp;Diluted </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>57,307,779 </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>37,881,209 </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>54,437,890 </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>37,680,823 </TD>
    <TD align=left width="2%"
  bgColor=#e6efff>&nbsp;</TD></TR></TABLE>
<P align=center>SEE ACCOMPANYING NOTES </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-4></A>
<P align=center><B>ANAVEX </B><B>LIFE </B><B>SCIENCES
</B><B>CORP.</B><BR>
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS<BR>for the six months ended March 31, 2015 and
2014<BR>(<U>Unaudited</U>)<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 style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="12%">2015
    </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%">2014
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Cash Flows used in Operating Activities </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Net loss for the period </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>(2,511,577</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>(660,223</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>Adjustments to reconcile net loss to net cash used in
      operations: </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Amortization and depreciation
    </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>498 </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>384 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;Accretion of debt discount </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">493,451 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">1,011 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Stock-based compensation </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>31,544 </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 align=left>&nbsp; &nbsp;Common shares to be issued for services </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%">610,000 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Amortization of deferred
      financing charge </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>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>1,199 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;Non-cash financing related charges </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">29,000 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">(683,000</TD>
    <TD align=left width="2%" >) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Change in fair value of
      derivative financial instruments </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>487,000 </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 vAlign=top>
    <TD align=left>&nbsp; &nbsp;Gain on extinguishment of debt </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">(105,745</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Unrealized foreign exchange
</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>(13,509</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>(17,143</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>Changes in non-cash working capital balances related to
      operations: </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%" >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Prepaid expenses </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>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>(12,253</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;Accounts payable and accrued liabilities </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%">225,987 </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="12%">(22,494</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Net cash used in operating activities </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>(1,363,351</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>(782,519</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD></TR>
  <TR>
    <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 align=left bgColor=#e6efff>Cash Flows used in Investing Activities </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=left>Acquisition of equipment </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>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    width="12%">(2,327</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Net cash used in investing activities </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>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>(2,327</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD></TR>
  <TR>
    <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 align=left bgColor=#e6efff>Cash Flows provided by Financing Activities
    </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=left>Issuance of common shares </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">500,000 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">398,170 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Share subscriptions received </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>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>(30,000</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>Financing fees paid </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">(734,840</TD>
    <TD align=left width="2%" >) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Repayment of promissory note </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>(88,144</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>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Proceeds from the issuance of convertible debentures </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>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">10,000,000 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Net cash provided by financing activities
    </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>411,856 </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>9,633,330 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <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 align=left bgColor=#e6efff>Decrease (increase) in cash during the
      period </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>(951,495</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>8,848,484 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Cash, beginning of period </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%">7,262,138 </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="12%">345,074 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Cash, end of period </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="12%"
    bgColor=#e6efff>6,310,643 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="12%"
    bgColor=#e6efff>9,193,558 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <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 align=left bgColor=#e6efff>Supplemental Cash Flow Information - Note
      11 </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></TABLE>
<P align=center>SEE ACCOMPANYING NOTES </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-5></A>
<P align=center><B>ANAVEX </B><B>LIFE</B><B>SCIENCES
</B><B>CORP.</B><BR>
INTERIM CONDENSED CONSOLIDATED STATEMENT OFCHANGES
INSTOCKHOLDERS' EQUITY<BR>forthesixmonths endedMarch31,2015<BR>(Unaudited
)<BR></P>
<DIV>
<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 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>&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 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>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>&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 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>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 style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD
      width="8%" 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="8%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid">ParValue </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">Deficit </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>
    <TD>&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 bgColor=#e6efff>Balance, October 1, 2014 </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>47,200,237 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>47,201 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>52,078,750 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;640,000 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="8%"
    bgColor=#e6efff>&nbsp;(52,573,325</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>192,626 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Capital stock issued pursuant to debt conversions - at
      $0.25 </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">15,673,912 </TD>
    <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%">15,676 </TD>
    <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%">3,041,031 </TD>
    <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%">3,056,707 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Capital stock issued for cash - at $0.25</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>2,000,000 </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>2,000 </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>- </TD>
    <TD vAlign=bottom align=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>2,000 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Reclassification of derivative liability </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%">3,931,000 </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%">3,931,000 </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>31,544 </TD>
    <TD vAlign=bottom align=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>31,544 </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%">(2,511,577</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%">(2,511,577</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Balance, March 31, 2015 </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="8%" bgColor=#e6efff>64,874,149 </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="8%" bgColor=#e6efff>64,876 </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>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="8%" bgColor=#e6efff>59,082,325 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="8%" bgColor=#e6efff>640,000 </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>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="8%" bgColor=#e6efff>(55,084,902</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="8%" bgColor=#e6efff>4,702,299 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD></TR></TABLE>
</DIV>
<P align=center>SEE ACCOMPANYING NOTES</P>
<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-6></A>
<P align=justify>Anavex Life Sciences Corp. <BR>Notes to the Interim Condensed
Consolidated Financial Statements <BR>March 31, 2015 <BR>(<U>Unaudited</U>)
<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 and Basis
      of Presentation</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%" >Business </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 clinical
      stage biopharmaceutical company engaged in the development of drug
      candidates to treat Alzheimer&#146;s disease, other central nervous system
      (CNS) diseases, and various types of cancer. The Company&#146;s 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></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 December 2014 a Phase 2a clinical trial was initiated
      for ANAVEX 2-73, which is being evaluated for the treatment of Alzheimer&#146;s
      disease. The randomized trial is designed to assess the safety and
      exploratory efficacy of ANAVEX 2-73 alone as well as in combination with
      donepezil (ANAVEX PLUS) in patients with mild to moderate Alzheimer&#146;s
      disease. ANAVEX 2-73 targets sigma-1 and muscarinic receptors, which have
      been shown in preclinical studies to reduce stress levels in the brain and
      to reverse the pathological hallmarks observed in Alzheimer&#146;s disease.
      ANAVEX 2-73 showed no serious adverse events in a previously performed
      Phase 1 study. In pre-clinical studies, ANAVEX 2-73 demonstrated
      anti-amnesic and neuroprotective properties in various animal models
      including the transgenic mouse model Tg2576. </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 intends 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 </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, 2014. 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 align=justify>Operating results for the six months ended March 31, 2015
      are not necessarily indicative of the results that may be expected for the
      year ending September 30, 2015. </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-7></A>
<P align=justify>Anavex Life Sciences Corp. <BR>Notes to the Interim Condensed
Consolidated Financial Statements <BR>March 31, 2015 <BR>Stated in US
Dollars<BR>(<U>Unaudited</U>) - Page 2</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="90%" ><U>Basic and Diluted Loss per
      Share</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 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 weighted average of all potentially dilutive
      shares of common stock that were outstanding during the period.
      Additionally, the numerator is also adjusted for changes in fair value of
      the derivative financial instruments where it is presumed they will be
      share settled. </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>As of March 31, 2015, loss per share excludes 97,345,896
      (2014 &#150; 77,305,632) potentially dilutive common shares related to
      outstanding options, warrants, and convertible debentures 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>&nbsp; </TD>
    <TD align=left width="90%" >
      <P align=justify><I>Recent Accounting Pronouncements Not Yet Adopted</I>
      </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 June 2014, the FASB issued ASU No. 2014-12, Accounting
      for Share-Based Payments When the Terms of an Award Provide That a
      Performance Target Could Be Achieved after the Requisite Service Period
      ("ASU 2014-12"). ASU 2014-12 requires that a performance target that
      affects vesting, and that could be achieved after the requisite service
      period, be treated as a performance condition. As such, the performance
      target should not be reflected in estimating the grant date fair value of
      the award. This update further clarifies that compensation cost should be
      recognized in the period in which it becomes probable that the performance
      target will be achieved and should represent the compensation cost
      attributable to the period(s) for which the requisite service has already
      been rendered. The amendments in this ASU are effective for annual periods
      and interim periods within those annual periods beginning after December
      15, 2015. The Company is currently evaluating the impact this guidance
      will have on its financial condition, results of operations and 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>In August 2014, the FASB issued ASU No. 2014-15,
      Disclosure of Uncertainties about an Entity&#146;s Ability to Continue as a
      Going Concern (&#147;ASU 2014-15&#148;). ASU 2014-15 will explicitly require
      management to assess an entity&#146;s ability to continue as a going concern,
      and to provide related footnote disclosure in certain circumstances. The
      new standard will be effective for all entities in the first annual period
      ending after December 15, 2016. The Company is currently evaluating the
      impact this guidance will have on its financial condition, results of
      operations and 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>In May, 2014, the FASB and the International Accounting
      Standards Board (IASB) issued a converged standard on revenue recognition
      from contracts with customers, ASU 2014-09 (Topic 606 and IFRS 15). This
      standard will supersede nearly all existing revenue recognition guidance.
      ASU 2014-09 is effective for fiscal years, and interim periods within
      those years, beginning after December 15, 2017. The Company is currently
      evaluating the impact this guidance will have on its financial condition,
      results of operations and 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>Other than noted above, the Company does not expect the
      adoption of recently issued accounting pronouncements to have a
      significant impact on its results of operations, financial position or
      cash flow. </P></TD></TR></TABLE><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-8></A>
<P align=justify>Anavex Life Sciences Corp. <BR>
  Notes to the Interim Condensed
  Consolidated Financial Statements <BR>
  March 31, 2015 <BR>
  Stated in US
  Dollars<BR>
  (<U>Unaudited</U>) - Page 3</P>
<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 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 colspan="7" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"> March 31, 2015  </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>&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>Accumulated </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 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="12%" 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="12%" 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="12%" 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="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 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>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="12%"
    bgColor=#e6efff>3,015 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="12%"
    bgColor=#e6efff>1,266 </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>1,749 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" 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 colspan="7" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"> September 30, 2014  </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>&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>Accumulated </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 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="12%" align=center nowrap>Cost </TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="12%" align=center nowrap>Depreciation </TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="12%" align=center nowrap>Net </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>
    <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>Computer equipment </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="12%"
    bgColor=#e6efff>3,015 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="12%"
    bgColor=#e6efff>768 </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>2,247 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR></TABLE>
<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-9></A>
<P align=justify>Anavex Life Sciences Corp. <BR>
  Notes to the Interim Condensed
  Consolidated Financial Statements <BR>
  March 31, 2015 <BR>
  Stated in US
  Dollars<BR>
  (<U>Unaudited</U>) - Page 4</P>
<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>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 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">2015    </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">2014    </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 December 31, 2012
      with a principal balance of CDN$100,000 bearing interest at 12% per annum,
      due on September 30, 2014 </TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</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>$</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>89,618 </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 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 bgColor=#e6efff>Promissory note dated January 9, 2013 with
      a principal balance of 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>68,553 </TD>
    <TD vAlign=bottom align=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>77,679 </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 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 bgColor=#e6efff>Promissory note dated January 9, 2013 with
      a principal balance of CDN$27,639, bearing interest at 12%per annum,
      secured by all the present and future assets of the Company; due on demand
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="12%" bgColor=#e6efff>21,859 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="12%" bgColor=#e6efff>24,768 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="12%">90,412 </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%">192,065 </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 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 was extended to
September 30, 2014. The Company repaid this note during the six months ended
March 31, 2015. </P>
<P style="MARGIN-LEFT: 10%" align=justify>On January 9, 2013, the Company issued
two (2) promissory notes (the &#147;Secured Notes&#148;); </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%">a) </TD>
    <TD>
      <P align=justify>The Company issued a promissory note in the amount of
      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
      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 align="center">F-42</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>Anavex Life Sciences Corp. <BR>
  Notes to the Interim Condensed
  Consolidated Financial Statements <BR>
  March 31, 2015 <BR>
  Stated in US
  Dollars<BR>
  (<U>Unaudited</U>) - Page 5</P>
<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>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>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></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>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></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 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, 2015 or September 30, 2014, as the Company does not consider these
      amounts to be legally enforceable. </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-11></A>
<P align=justify>Anavex Life Sciences Corp. <BR>
  Notes to the Interim Condensed
  Consolidated Financial Statements <BR>
  March 31, 2015 <BR>
  Stated in US
  Dollars<BR>
  (<U>Unaudited</U>) - Page 6</P>
<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 5 </TD>
    <TD align=left width="90%" ><U>Non-interest Bearing
      Liabilities</U> </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%" >Non-interest bearing liabilities
      consists of the following: </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">2015    </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">2014    </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>Senior Convertible Debentures </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>133,727 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>263,727 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left>Derivative Financial Instruments </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>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">5,456,000 </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>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="12%"
    bgColor=#e6efff>133,727 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="12%"
    bgColor=#e6efff>5,719,727 </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><B>Senior Convertible Debentures
</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 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">2015    </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">2014    </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>3,527,566 </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>7,446,044 </TD>
    <TD align=left 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 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">(3,393,839</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%">(7,182,317</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Total carrying value </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>133,727 </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>263,727 </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%">- </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="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>Long term liability </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="12%"
    bgColor=#e6efff>133,727 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="12%"
    bgColor=#e6efff>263,727 </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="60%" border=0>

  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="19%" align=center nowrap>&nbsp; </TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="19%" align=center nowrap>Non- </TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="19%" 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="19%" 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="19%" 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="19%" 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="19%" 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="19%" 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="19%" 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="19%">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="19%">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="19%">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="19%"
    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="19%"
    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="19%"
    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. The Debentures were
originally convertible, in whole or in part, at the option of the holder 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. The Conversion Price was later amended to
$0.25 per share, as set forth below. </P>
<p align="center">F-44</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>Anavex Life Sciences Corp. <BR>
  Notes to the Interim Condensed
  Consolidated Financial Statements <BR>
  March 31, 2015 <BR>
  Stated in US
  Dollars<BR>
  (<U>Unaudited</U>) - Page 7</P>
<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 5 </TD>
    <TD align=left width="90%" ><U>Non-interest Bearing
      Liabilities </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%" ><B>Senior Convertible Debentures
      </B>&#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>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>&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 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>&nbsp; </TD>
    <TD width="90%" >&nbsp;    </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 was
      being amortized using the effective interest method over the term of the
      Debentures. </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 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 $788,712,
      was recorded as a deferred financing charge and was being amortized to
      income over the term of the Debentures using the effective interest
      method. </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 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 vAlign=top>
    <TD align=left>Expected life (years) </TD>
    <TD align=left width="30%" >5.00 </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 vAlign=top>
    <TD align=left>Dividend yields </TD>
    <TD align=left width="30%" >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 (the &#147;RRA&#148;) 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>On July 23, 2014, the registration
statement was declared effective by the SEC. </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_F-13></A>
<P align=justify>Anavex Life Sciences Corp. <BR>
  Notes to the Interim Condensed
  Consolidated Financial Statements <BR>
  March 31, 2015 <BR>
  Stated in US
  Dollars<BR>
  (<U>Unaudited</U>) - Page 8</P>
<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 5 </TD>
    <TD align=left width="90%" ><U>Non-interest Bearing
      Liabilities </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%" ><B>Senior Convertible Debentures
      </B>&#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%" ><U>Amendment Agreements</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>On August 25, 2014, the Company entered into amendment
      agreements with each Purchaser, pursuant to which all provisions regarding
      liquidating damages and the accrual of damages with respect to the
      obligations for, and rights enforceable against, the Company, were
      eliminated from the RRAs. As consideration for entering into the amendment
      agreements and for the Purchasers agreeing to forego an amount of $459,912
      in liquidating damages that had accrued and were accruing pursuant to the
      terms of the original RRAs, the Company agreed to adjust the fixed
      conversion price of the remaining outstanding debentures from $0.30 per
      share to $0.25 per share (the &#147;Debenture Amendment&#148;). </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 assessed the guidance under ASC 470-60
      <I>Troubled Debt Restructurings</I> and determined that this guidance did
      not apply to the Debenture Amendment. The Debenture Amendment was
      considered a substantial change in the terms of the debentures pursuant to
      ASC 470-50 <I>Modifications and Extinguishments </I>and accordingly, the
      Company was required to apply debt extinguishment accounting.
      Consequently, the Company calculated a net non-cash loss on extinguishment
      of debt of $8,099,137 as the premium of the aggregate fair value of the
      amended debentures over their aggregate carrying values of $906
      immediately prior to the Debenture Amendment and the gain from the
      forgiveness of accrued liquidating damages of $459,912. This amount is
      included in other financing related charges and adjustments on the
      consolidated statement of operations during 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></TD>
    <TD align=left width="90%" >
      <P align=justify>The Company calculated the fair value of the amended
      Debentures by discounting future cash flows using rates representative of
      current borrowing rates for debt instruments without a conversion feature
      and by using the binomial option pricing model to determine the fair value
      of the conversion features, using the following 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="35%" bgColor=#e6efff >3.13% </TD></TR>
  <TR vAlign=top>
    <TD align=left>Expected life (years) </TD>
    <TD align=left width="35%" >29.58 </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Expected volatility </TD>
    <TD align=left width="35%" bgColor=#e6efff >100.71% </TD></TR>
  <TR vAlign=top>
    <TD align=left>Dividend yields </TD>
    <TD align=left width="35%" >0.00% </TD></TR></TABLE></DIV>
<P style="MARGIN-LEFT: 10%" align=justify>In addition, in accordance with debt
extinguishment accounting, remaining unamortized financing costs of $1,110,568
associated with the original Debentures were immediately amortized through
earnings upon entering into the amendments. This amount is also included in
other financing related charges and adjustments in the consolidated statement of
operations during the year ended September 30, 2014. </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_F-14></A>
<P align=justify>Anavex Life Sciences Corp. <BR>
  Notes to the Interim Condensed
  Consolidated Financial Statements <BR>
  March 31, 2015 <BR>
  Stated in US
  Dollars<BR>
  (<U>Unaudited</U>) - Page 9</P>
<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 5 </TD>
    <TD align=left width="90%" ><U>Non-interest Bearing
      Liabilities </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%" ><B>Senior Convertible
      Debentures </B>&#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>During the six months ended March 31, 2015, the Company
      issued an aggregate of 15,673,912 shares of common stock that were based
      on a conversion price of $0.25 per share pursuant to the conversion of
      $3,918,478 in outstanding principal amounts due under the Debentures.
    </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>As a result of the bifurcation of the embedded conversion
      option subsequent to the Debenture Amendments as discussed above, for
      accounting purposes, two instruments were considered outstanding and, upon
      exercise of the contractual conversion option, extinguishment accounting
      was applied. Consequently, the embedded conversion feature was adjusted to
      fair value at the conversion date and the shares issued pursuant to
      conversion were recorded at their fair value on the date of issuance,
      determined with reference to the quoted market price of the Company&#146;s
      shares on the issuance date. The resulting difference was recorded as a
      gain or loss on the consolidated statement of operations. During the six
      months ended March 31, 2015, the Company recorded $105,745 (2014: $Nil) in
      respect of net gains on these conversion of the Debentures. </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 March 26, 2015 and upon a change in triggering
      events, the embedded conversion option is no longer required to be
      bifurcated and conversion accounting has been applied to all conversions
      subsequent to the change in triggering events. </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><B>Embedded conversion options and warrants</B>
</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, 2014, the Company had outstanding
      embedded conversion options associated with the Senior Convertible
      Debentures and outstanding warrants being accounted for as derivative
      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>These derivative financial instruments arise as a result
      of applying ASC 815 <I>Derivatives</I> <I>and Hedging </I>(&#147;ASC 815&#148;),
      which requires the Company to make a determination whether an
      equity-linked financial instrument, or embedded feature, is indexed to the
      entity&#146;s own stock. This guidance applies to any freestanding financial
      instrument or embedded features that have the characteristics of a
      derivative, and to any freestanding financial instruments that are
      potentially settled in an entity&#146;s own stock. </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, 2014, the Company
      issued debentures with fixed price embedded conversion features and,
      subsequent to certain amendments as discussed above, the Company did not,
      at the date of issuance of these instruments, have a sufficient number of
      authorized and available shares of common stock to fully settle the
      conversion feature of such instruments if exercised. As such, the Company
      was required to account for these instruments as derivative financial
      instruments. On the amendment date of the related convertible debentures,
      the Company recorded a debt discount to the extent of the fair value of
      the embedded conversion features required to be accounted for as
      liabilities under ASC 815. </P></TD></TR></TABLE><BR>
<p align="center">F-47</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>
  Notes to the Interim Condensed
  Consolidated Financial Statements <BR>
  March 31, 2015 <BR>
  Stated in US
  Dollars<BR>
  (<U>Unaudited</U>) - Page 10</P>
<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 5 </TD>
    <TD align=left width="90%">
      <P align=justify><U>Non-interest Bearing Liabilities </U>&#150; (cont&#146;d)
  </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><B>Embedded conversion options and warrants </B>&#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>During the six months ended March 31, 2015, the Company
      issued units consisting of shares of common stock and share purchase
      warrants and since the Company did not, at the date of issuance of these
      instruments, have a sufficient number of authorized and available shares
      of common stock to fully settle the exercise of these warrants if
      exercised, due to the outstanding embedded conversion features discussed
      above, the Company was required to account for these instruments as
      derivative financial instruments. On the commitment date of the related
      warrants, the Company allocated the proceeds from the issuance of units
      first to the derivative liability at its fair value, with any remaining
      proceeds allocated to the common stock. </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 March 26, 2015, the Company received stockholder
      approval to approve an amendment to the Company&#146;s articles of
      incorporation to increase the Company&#146;s authorized common stock from
      150,000,000 to 400,000,000 shares, which is now sufficient to fully settle
      all the outstanding equity contracts. Consequently, these instruments
      previously accounted for as liabilities under ASC 815 are no longer
      required to be accounted for as liabilities. Pursuant to the guidance of
      ASC 815, the Company reclassified the fair value of these instruments on
      the date of this triggering event into equity, with the change in fair
      value up to the date of modification being recorded on the consolidated
      statement 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>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 as a
      result of certain features embedded in those instruments. During the three
      months ended December 31, 2013, the Company amended the terms of these
      common stock purchase warrants. As of the modification date, these
      warrants were no longer required to be accounted for as liabilities.
      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>As a result of the application of ASC 815, the Company
      has recorded these liabilities at their fair values 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">2015    </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">2014    </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>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>5,456,000 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>904,000 </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 </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%">527,000 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%">8,277,000 </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 during the period </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>487,000 </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>(2,956,000</TD>
    <TD align=left width="2%" bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD align=left>Reclassification to equity upon change in triggering events
    </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%">(3,931,000</TD>
    <TD align=left width="2%">) </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%">(221,000</TD>
    <TD align=left width="2%">) </TD></TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Transfer to equity upon exercise </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>(2,539,000</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="12%"
    bgColor=#e6efff>(548,000</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%">$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="12%">-
</TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%">$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right
      width="12%">5,456,000 </TD>
    <TD align=left width="2%">&nbsp;</TD></TR></TABLE><BR>
<p align="center">F-48</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>
  Notes to the Interim Condensed
  Consolidated Financial Statements <BR>
  March 31, 2015 <BR>
  Stated in US
  Dollars<BR>
  (<U>Unaudited</U>) - Page 11</P>
<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 5 </TD>
    <TD align=left width="90%" ><U>Non-interest Bearing
      Liabilities </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%" ><B>Embedded conversion options
      and warrants </B>&#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 embedded conversion features and warrants accounted
      for as derivative financial instruments have no observable market and the
      Company estimated their fair values at their reclassification dates and
      September 30, 2014 using the binomial option pricing model based on the
      following weighted average management 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="10%"  >&nbsp;</TD>
    <TD align=left >&nbsp; </TD>
    <TD align=right width="25%"><U>Reclassification</U> </TD>
    <TD align=right width="25%"><U>September</U> </TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left >&nbsp; </TD>
    <TD align=right width="25%"><U>Date</U> </TD>
    <TD align=right width="25%"><U>30, 2014</U> </TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff >Risk-free interest rate </TD>
    <TD align=right width="25%" bgColor=#e6efff>1.47% </TD>
    <TD align=right width="25%" bgColor=#e6efff>3.21% </TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left >Expected life (years) </TD>
    <TD align=right width="25%">24.19 </TD>
    <TD align=right width="25%">29.48 </TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff >Expected volatility </TD>
    <TD align=right width="25%" bgColor=#e6efff>102.14% </TD>
    <TD align=right width="25%" bgColor=#e6efff>100.07% </TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left >Dividend yields </TD>
    <TD align=right width="25%">0.00% </TD>
    <TD align=right width="25%">0.00% </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 6 </TD>
    <TD align=left width="90%" ><U>Capital Stock</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%" >Authorized </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 March 26, 2015, the Company received stockholder
      approval to approve an amendment to the Company&#146;s articles of
      incorporation to increase the Company&#146;s authorized common stock from
      150,000,000 to 400,000,000 shares. </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>Equity Transactions </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 October 22, 2014, the Company entered into a
      Securities Purchase Agreement (the &#147;Purchase Agreement&#148;) with one investor
      for an equity investment of $500,000 at a price of $0.25 per unit.
      Pursuant to the terms of the Purchase Agreement, the Company agreed to
      sell, and Lincoln Park agreed to purchase, 2,000,000 shares of common
      stock. In addition, the Company agreed to issue an aggregate of 4,000,000
      stock purchase warrants, of which 2,000,000 are exercisable at $0.30 per
      share and 2,000,000 are exercisable at $0.42 per share, each for a period
      of five years, subject to normal adjustment for stock splits,
      combinations, and reclassification events. </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>As discussed in Note 5, the warrants issued were required
      to be accounted for as derivative liabilities at their date of issuance,
      pursuant to the guidance of ASC 815. Consequently, the Company allocated
      the proceeds from the issuance of the units first to the warrants, at
      their fair value of $527,000 with an amount of $2,000 being allocated to
      equity at par value. The $29,000 excess of the sum of fair value and par
      value over the proceeds received of $500,000 was recorded as a component
      of financing related charges and adjustments on the statement of
      operations during the six months ended March 31, 2015. The fair value of
      the warrants was determined based on the binomial option pricing model
      using the following weighted average assumptions: risk-free interest rate:
      1.46%, expected life: 5 years, expected volatility: 100.21%, dividend
      yield: 0%. </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 paid a finder&#146;s fee of $50,000 in connection
      with the purchase agreement. This amount was expensed as a component of
      financing related charges and adjustments during the six months ended
      March 31, 2015. </P></TD></TR></TABLE><BR>
<p align="center">F-49</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>
  Notes to the Interim Condensed
  Consolidated Financial Statements <BR>
  March 31, 2015 <BR>
  Stated in US
  Dollars<BR>
  (<U>Unaudited</U>) - Page 12</P>
<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%" >
      <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></TD>
    <TD align=left width="90%" >
      <P align=justify>Included in common stock to be issued at March 31, 2015
      is an amount of $610,000 (September 30, 2014: $610,000) related to
      1,000,000 of common stock issuable to a director and officer of the
      Company pursuant to the terms of an employment agreement with that
      director and officer (Note 8). </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>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>
  <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 a net $73,787 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 in the period incurred. </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, 2015, the Company
      did not issue any shares under the Purchase Agreement.
</P></TD></TR></TABLE><BR>
<p align="center">F-50</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>
  Notes to the Interim Condensed
  Consolidated Financial Statements <BR>
  March 31, 2015 <BR>
  Stated in US
  Dollars<BR>
  (<U>Unaudited</U>) - Page 13</P>
<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 8 </TD>
    <TD align=left width="90%"><U>Related Party Transactions</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>During the three and six months ended March 31, 2015, the
      Company was charged general and administrative expenses totaling $16,082
      and $32,465, respectively (2014: $Nil and $Nil, respectively) in respect
      of directors fees and stock option based compensation charges paid or
      accrued to directors and officers of the Company, inclusive of amounts
      noted below. </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 at March 31, 2015, included in accounts payable and
      accrued liabilities was $40,016 (September 30, 2014: $28,232) owing to
      directors and officers of the Company for director fees and reimbursable
      expenses, and a former director and officer of the Company for unpaid
      fees. </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.</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 year ended September 30,
      2014 at a value of $610,000) </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><BR>
<p align="center">F-51</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>
  Notes to the Interim Condensed
  Consolidated Financial Statements <BR>
  March 31, 2015 <BR>
  Stated in US
  Dollars<BR>
  (<U>Unaudited</U>) - Page 14</P>
<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 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="21%" align=center nowrap>&nbsp; </TD>
    <TD width="3%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="21%" align=center nowrap>Weighted </TD>
    <TD align=left width="3%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="21%" align=center nowrap>&nbsp; </TD>
    <TD width="3%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="21%" align=center nowrap>Average </TD>
    <TD align=left width="3%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="21%" align=center nowrap>&nbsp; </TD>
    <TD width="3%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="21%" align=center nowrap>Exercise </TD>
    <TD align=left width="3%" >&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="21%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid">Number of Shares </TD>
    <TD width="3%" 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="21%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid">Price </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="3%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >Balance, October 1, 2013 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="21%" bgColor=#e6efff>9,149,479 </TD>
    <TD align=left width="3%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=center width="21%" bgColor=#e6efff>0.75 </TD>
    <TD align=left width="3%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Expired </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="21%">(2,700,513</TD>
    <TD align=left width="3%" >) </TD>
    <TD align=left width="1%" >$</TD>
    <TD align=center width="21%">0.75 </TD>
    <TD align=left width="3%" >&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="21%"
    bgColor=#e6efff>68,466,666 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="3%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="21%"
    bgColor=#e6efff>0.36 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="3%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Balance, September 30, 2014 </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="21%">74,915,632 </TD>
    <TD align=left width="3%" >&nbsp;</TD>
    <TD align=left width="1%" >$</TD>
    <TD align=center width="21%">0.40 </TD>
    <TD align=left width="3%" >&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="21%" bgColor=#e6efff>(250,000</TD>
    <TD align=left width="3%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=center width="21%" bgColor=#e6efff>0.19 </TD>
    <TD align=left width="3%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Issued </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="21%">4,300,000 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="3%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="21%">0.35
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="3%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >Balance, March 31, 2015 </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="21%"
    bgColor=#e6efff>78,965,632 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="3%"
     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="21%"
    bgColor=#e6efff>0.40 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="3%"
     bgColor=#e6efff>&nbsp;</TD></TR></TABLE></DIV>
<P style="MARGIN-LEFT: 15%" align=justify>At March 31, 2015, the Company has
78,965,632 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="60%" border=0>

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center>&nbsp;Number </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="5%"
     >&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="28%">Exercise Price </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" 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="28%">Expiry Date </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=right bgColor=#e6efff>&nbsp;6,448,966 </TD>
    <TD align=left width="5%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=center width="28%" bgColor=#e6efff>0.75 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="28%" bgColor=#e6efff>July 5, 2018 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=right>&nbsp; &nbsp; &nbsp;500,000 </TD>
    <TD align=left width="5%"  >&nbsp;</TD>
    <TD align=left width="1%" >$</TD>
    <TD align=center width="28%">0.75 </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="28%">February 14, 2019 </TD>
    <TD align=left width="1%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=right bgColor=#e6efff>&nbsp; &nbsp; &nbsp;120,000 </TD>
    <TD align=left width="5%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=center width="28%" bgColor=#e6efff>1.00 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="28%" bgColor=#e6efff>February 24, 2019 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=right>33,833,333 </TD>
    <TD align=left width="5%"  >&nbsp;</TD>
    <TD align=left width="1%" >$</TD>
    <TD align=center width="28%">0.30 </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="28%">March 13, 2019 </TD>
    <TD align=left width="1%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=right bgColor=#e6efff>33,833,333 </TD>
    <TD align=left width="5%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=center width="28%" bgColor=#e6efff>0.42 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="28%" bgColor=#e6efff>March 13, 2019 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=right>&nbsp; &nbsp; &nbsp;180,000 </TD>
    <TD align=left width="5%"  >&nbsp;</TD>
    <TD align=left width="1%" >$</TD>
    <TD align=center width="28%">0.31 </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="28%">May 31, 2019 </TD>
    <TD align=left width="1%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=right bgColor=#e6efff>&nbsp;2,000,000 </TD>
    <TD align=left width="5%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=center width="28%" bgColor=#e6efff>0.30 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="28%" bgColor=#e6efff>October 22, 2019 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=right>&nbsp;2,000,000 </TD>
    <TD align=left width="5%"  >&nbsp;</TD>
    <TD align=left width="1%" >$</TD>
    <TD align=center width="28%">0.42 </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="28%">October 22, 2019 </TD>
    <TD align=left width="1%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      bgColor=#e6efff>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;50,000 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="5%"
     bgColor=#e6efff >&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=center width="28%" bgColor=#e6efff>0.31 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="28%" bgColor=#e6efff>May 31, 2019 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right>78,965,632 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="5%"
     >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=center width="28%">&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="28%">&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD></TR></TABLE></DIV>
<P style="MARGIN-LEFT: 15%" align=justify>During the six months ended March 31,
2015, the Company issued 250,000 warrants exercisable at $0.19 per share until
January 31, 2015 to a consultant of the Company pursuant to a consulting
agreement dated October 24, 2014. The warrants were to vest in the event the
Company entered into a license agreement or direct sales transaction as a direct
result of the consultant. During the six months ended March 31, 2015, these
warrants expired unvested and unexercised. No stock-based compensation has been
or will be recorded in the financial statements as none of the performance
conditions for vesting were met. </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_F-20></A>
<P align=justify>Anavex Life Sciences Corp. <BR>
  Notes to the Interim Condensed
  Consolidated Financial Statements <BR>
  March 31, 2015 <BR>
  Stated in US
  Dollars<BR>
  (<U>Unaudited</U>) - Page 15</P>
<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 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%">a) </TD>
    <TD>
      <P align=justify>Share Purchase Warrants &#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>During the six months ended March 31, 2015, the Company
      issued 50,000 warrants exercisable at $0.31 per share until May 31, 2019
      to a consultant of the Company pursuant to a consulting agreement. The
      fair value of these warrants at issuance was calculated to be $6,000 based
      on the Black-Scholes option pricing model using the following assumptions:
      expected term 4.59 years, expected volatility 102.33%, expected dividend
      yield 0.00%, risk free interest rate 1.58%. Stock based compensation will
      be recorded in the financial statements over the vesting term of three
      years from the date of grant.</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>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></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>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 granted options 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></TABLE><BR>
<p align="center">F-53</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>
  Notes to the Interim Condensed
  Consolidated Financial Statements <BR>
  March 31, 2015 <BR>
  Stated in US
  Dollars<BR>
  (<U>Unaudited</U>) - Page 16</P>
<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 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>A summary of the status of Company&#146;s outstanding stock
      purchase options for the six months ended March 31, 2015 and for the year
      ended September 30, 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>&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>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>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 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="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">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="12%" 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 October 1, 2013 </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>3,075,000 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>1.26 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="15%">&nbsp;</TD>
    <TD align=left>Expired </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%">(705,000</TD>
    <TD align=left width="2%">) </TD>
    <TD align=left width="1%">$</TD>
    <TD align=right width="12%">2.70 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=left width="12%">&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="12%"
    bgColor=#e6efff>800,000 </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>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>0.32 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>0.25 </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, 2014 and March 31, 2015 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right
      width="12%">3,170,000 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%">$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="12%">0.70
    </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%">&nbsp; </TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="12%"></TD>
    <TD align=left width="2%"></TD></TR>
  <TR vAlign=top>
    <TD width="15%">&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Exercisable at March 31, 2015 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="12%"
    bgColor=#e6efff>2,100,000 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
    bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="12%"
    bgColor=#e6efff>0.56 </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="12%" 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, 2014 </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%">2,100,000 </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="12%">0.56
    </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="12%">&nbsp; </TD>
    <TD align=left width="2%">&nbsp;</TD></TR></TABLE>
<P style="MARGIN-LEFT: 15%" align=justify>At March 31, 2015, the following stock
options were outstanding: </P>
<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="5" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid">Number of Shares    </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="15%" 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>Aggregate </TD>
    <TD width="2%" align=center nowrap>&nbsp;</TD>
    <TD width="1%" align=center nowrap>&nbsp;</TD>
    <TD width="12%" 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="4%" align=center nowrap>&nbsp;</TD>
    <TD width="1%" align=center nowrap>&nbsp;</TD>
    <TD width="12%" align=center nowrap>Number </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="15%" 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>Intrinsic </TD>
    <TD width="2%" align=center nowrap>&nbsp;</TD>
    <TD width="1%" align=center nowrap>&nbsp;</TD>
    <TD width="12%" 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="4%" 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">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="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="15%" 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="12%" 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="12%" 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>100,000 </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="4%" bgColor=#e6efff>(1) </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>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>3.67 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="15%" bgColor=#e6efff>March 30, 2016 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>1.00 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=right>270,000 </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="4%">(2) </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%">-</TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">$</TD>
    <TD align=right width="12%">3.00 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="15%">February 8, 2017 </TD>
    <TD align=left width="2%">&nbsp;</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%">1.86 </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=right bgColor=#e6efff>2,000,000 </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="4%" bgColor=#e6efff>(3) </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>2,000,000 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>0.40 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="15%" bgColor=#e6efff>July 5, 2023 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>8.27 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=right>300,000 </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="4%">(4) </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%">-</TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">$</TD>
    <TD align=right width="12%">0.30 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="15%">May 7, 2024 </TD>
    <TD align=left width="2%">&nbsp;</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%">9.11 </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      bgColor=#e6efff>500,000 </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="4%"
    bgColor=#e6efff>(5) </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 align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>0.33 </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>May 8, 2024 </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 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="12%" bgColor=#e6efff>9.11 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right>3,170,000 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left
    width="4%">&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="12%">2,100,000 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </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>
    <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>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=left width="12%">&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 March 31, 2015. </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, 2015 and September 30, 2014, these
      options had fully vested. These options were granted during the year ended
      September 30, 2011 and vested over a period of one year from the date of
      grant. 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 three and six months ended March 31, 2015 (2014: $Nil and $Nil,
      respectively) in connection with these
options.</P></TD></TR></TABLE><BR>
<p align="center">F-54</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>
  Notes to the Interim Condensed
  Consolidated Financial Statements <BR>
  March 31, 2015 <BR>
  Stated in US
  Dollars<BR>
  (<U>Unaudited</U>) - Page 17</P>
<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 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 colSpan=2>
      <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 width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%"><SUP>(2) </SUP></TD>
    <TD>
      <P align=justify>As of March 31, 2015 and September 30, 2014, none of
      these options had 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="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%"><SUP>(3)</SUP> </TD>
    <TD>
      <P align=justify>As of March 31, 2015 and September 30, 2014 these options
      had fully vested. These options were granted during the year ended
      September 30, 2013 and vested immediately upon granting. The Company did
      not recognize any stock-based compensation during the three and six months
      ended March 31, 2015 (2014: $Nil and $Nil, respectively) in connection
      with these options.</P></TD></TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%"><SUP>(4)</SUP> </TD>
    <TD>
      <P align=justify>As of March 31, 2015 and September 30, 2014, none of
      these options had vested. These options were issued during the year ended
      September 30, 2014 and vest annually over a three year period commencing
      on the first anniversary of the date of the grant. The Company recognized
      stock based compensation expense of $5,830 and $11,660 during the three
      and six months ended March 31, 2015, respectively (2014: $Nil and $Nil,
      respectively) in connection with these options. These amounts have been
      included in general and administrative expenses on the Company&#146;s statement
      of operations.</P></TD></TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%"><SUP>(5)</SUP> </TD>
    <TD>
      <P align=justify>As of March 31, 2015 and September 30, 2014, none of
      these options had vested. These options were issued during the year ended
      September 30, 2014 and vest annually over a four year period commencing on
      the first anniversary of the date of the grant. The Company recognized
      stock based compensation expense of $8,053 and $16,106 during the three
      and six months ended March 31, 2015, respectively (2014: $Nil and $Nil,
      respectively) 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 and $Nil during the three and six months ended March 31,
2014, respectively. </P>
<P style="MARGIN-LEFT: 15%" align=justify>There has been no stock-based
compensation recognized in the financial statements for the three and six months
ended March 31, 2015 (2014: $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 align="center">F-55</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>
  Notes to the Interim Condensed
  Consolidated Financial Statements <BR>
  March 31, 2015 <BR>
  Stated in US
  Dollars<BR>
  (<U>Unaudited</U>) - Page 18</P>
<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 10 </TD>
    <TD align=left width="90%" ><U>Subsequent Events</U> </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%" >Subsequent to March 31, 2015;
  </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>the Company granted stock options to purchase an
      aggregate of 2,875,000 shares of common stock of the Company at an
      exercise price of $0.23 per share for a period of 10 years from the date
      of issuance. The options shall vest in three equal annual
    instalments.</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>the Company issued 4,378,954 shares of common stock of
      the Company pursuant to the exercise of share purchase warrants at $0.30
      per share.</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>Note 11 </TD>
    <TD align=left width="90%" ><U>Supplemental Cash Flow
      Information</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>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 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 six months ended March
      31, 2015; </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>the Company issued 15,673,912 shares of common stock upon
      conversion of convertible debentures at a conversion price of $0.25 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 vAlign=top width="5%">ii) </TD>
    <TD>
      <P align=justify>the Company reclassified an amount of $3,931,000 into
      equity upon modification of the terms of certain derivative
      instruments.</P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 10%" 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>
<P style="MARGIN-LEFT: 10%" align=justify>These transactions have been excluded
from the statement of cash flows. </P>

<p align="center">F-56</p>
<hr style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noshade size=5>
<P align=center>&nbsp;</P>
<P align=center><B>ANAVEX LIFE SCIENCES CORP.</B><BR><B>9,975,267 Shares of
Common Stock</B><BR>PROSPECTUS<BR>
July 8, 2015</P>
<P align=center>&nbsp;</P>
<P align=center><BR></P>
<HR align=center width="100%" color=black noShade SIZE=5>
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