<SUBMISSION>
<ACCESSION-NUMBER>0001062993-13-004585
<TYPE>424B3
<PUBLIC-DOCUMENT-COUNT>4
<FILING-DATE>20130911
<DATE-OF-FILING-DATE-CHANGE>20130911
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>AMERICAN PETRO-HUNTER INC
<CIK>0001040482
<ASSIGNED-SIC>1389
<IRS-NUMBER>980171619
<STATE-OF-INCORPORATION>NV
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>424B3
<ACT>33
<FILE-NUMBER>333-190287
<FILM-NUMBER>131090647
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>17470  NORTH PACESETTER WAY
<CITY>SCOTTSDALE
<STATE>AZ
<ZIP>85255
<PHONE>480-305-2052
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>17470  NORTH PACESETTER WAY
<CITY>SCOTTSDALE
<STATE>AZ
<ZIP>85255
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>TRAVELPORT SYSTEMS INC
<DATE-CHANGED>20001129
</FORMER-COMPANY>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>WOLF INDUSTRIES INC
<DATE-CHANGED>19970604
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>424B3
<SEQUENCE>1
<FILENAME>form424b3.htm
<DESCRIPTION>FORM 424B3
<TEXT>
<HTML>
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   <TITLE>American Petro-Hunter, Inc.: Form 424b3 - Filed by newsfilecorp.com</TITLE>
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<P align=right>Filed Pursuant to Rule 424(b)(3) <BR>Registration No.
333-190287</P>
<P align=center><B>PROSPECTUS SUPPLEMENT</B></P>
<P align=center><B>16,182,230 SHARES OF COMMON STOCK</B></P>
<P align=center><B>AMERICAN PETRO-HUNTER INC.</B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Prospectus Supplement
supplements and amends our Prospectus dated September 11, 2013. This Prospectus
Supplement includes our attached Quarterly Report on Form 10-Q for the quarterly
period ended June 30, 2013, as filed with the Securities and Exchange Commission
on September 11, 2013.</P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Prospectus and this
Prospectus Supplement relate to the resale of up to an aggregate of 16,182,230
shares of our common stock, par value $0.001 per share, by Hanover Holdings I,
LLC, a New York limited liability company (&#147;Hanover&#148; or &#147;Selling Stockholder&#148;),
14,417,524 of which (the &#147;Purchase Shares&#148;) are issuable to Hanover pursuant to
the terms of the Common Stock Purchase Agreement, between the Company and
Hanover, dated March 22, 2013 (the &#147;Purchase Agreement&#148;) and1,764,706 of which
were issued to Hanover on March 22, 2013 in satisfaction of a $150,000
commitment fee paid to Hanover for entering into the Purchase Agreement, based
upon a price per share equal to $0.085 per share.</P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Prospectus Supplement should
be read in conjunction with the Prospectus. Any statement contained in the
Prospectus shall be deemed to be modified or superseded to the extent that
information in this Prospectus Supplement modifies or supersedes such statement.
Any statement that is modified or superseded shall not be deemed to constitute a
part of the Prospectus except as modified or superseded by this Prospectus
Supplement.</P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our common stock is quoted on the
OTC Bulletin Board under the symbol &#147;AAPH&#148; The shares of our common stock
registered hereunder are being offered for sale by Selling Stockholder at prices
established on the OTC Bulletin Board during the term of this offering. On
September 9, 2013, the closing bid price of our common stock was $0.0145 per
share. These prices will fluctuate based on the demand for our common stock.</P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>INVESTING IN OUR COMMON STOCK
INVOLVES A HIGH DEGREE OF RISK. SEE &#147;RISK FACTORS&#148; BEGINNING ON PAGE 6 OF THE
PROSPECTUS.</B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>NEITHER THE SECURITIES AND
EXCHANGE COMMISSION NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR
DISAPPROVED OF THESE SECURITIES OR DETERMINED IF THE PROSPECTUS OR THIS
PROSPECTUS SUPPLEMENT IS TRUTHFUL OR COMPLETE. ANY REPRESENTATION TO THE
CONTRARY IS A CRIMINAL OFFENSE.</B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The date of this Prospectus
Supplement is September 11, 2013.</P>
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<A name="page_2"></A>

<P align=center><B><FONT size=5>UNITED STATES</FONT></B><BR>
    <B><FONT
size=5>SECURITIES AND EXCHANGE COMMISSION </FONT></B><BR>
  Washington, D.C. 20549 </P>
<P align=center><B><FONT size=5>FORM 10-Q </FONT></B></P>
<P align=center>[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
  SECURITIES EXCHANGE ACT OF 1934 </P>
<P align=center>For the quarterly period ended: <B><U>June 30, 2013 </U></B></P>
<P align=center>[&nbsp;&nbsp; ] TRANSITION REPORT PURSUANT TO
  SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 </P>
<P align=center>For the transition period from __________to __________</P>
<P align=center>Commission File Number <B><U>0-22723 </U></B></P>
<P align=center><B><U><FONT size=5>AMERICAN PETRO-HUNTER INC.</FONT></U></B><B> </B><BR>
  (Exact name of registrant as specified in its charter) </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><div align="center"><B><U>Nevada </U></B></div></TD>
    <TD align=left width="50%"><div align="center"><B><U>90-0552874 </U></B></div></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><div align="center">(State or Other Jurisdiction of </div></TD>
    <TD align=left width="50%"><div align="center">(I.R.S. Employer </div></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><div align="center">Incorporation or Organization) </div></TD>
    <TD align=left width="50%"><div align="center">Identification Number) </div></TD>
  </TR>
</TABLE>
<P align=center><B>250 N. Rock Rd., Suite 365 </B><BR>
    <B><U>Wichita KS,
      67206</U></B><B> </B><BR>
  (Address of principal executive offices) (Zip Code)<B> </B></P>
<P align=center><B><U>(316) 201-1853</U></B><B> </B><BR>
  (Registrant&#146;s telephone
  number, including area code)<B> </B></P>
<P align=justify>Indicate by check mark whether the registrant (1) has filed all
  reports required to be filed by Section 13 or 15(d) of the Securities Exchange
  Act of 1934 during the preceding 12 months (or for such shorter period that the
  registrant was required to file such reports), and (2) has been subject to such
  filing requirements for the past 90 days. <BR>
  [X] Yes&nbsp;&nbsp;&nbsp;
  &nbsp;[&nbsp;&nbsp; ] No </P>
<P align=justify>Indicate by check mark whether the registrant has submitted
  electronically and posted on its corporate Web site, if any, every Interactive
  Data File required to be submitted and posted pursuant to Rule 405 of Regulation
  S-T (&#167;232.405 of this chapter) during the preceding 12 months (or for such
  shorter period that the registrant was required to submit and post such files) <BR>
  [X] Yes&nbsp;&nbsp;&nbsp;&nbsp; [&nbsp;&nbsp;&nbsp;] No </P>
<P align=justify>Indicate by check mark whether the registrant is a large
  accelerated filer, an accelerated filer, a non-accelerated filer or a smaller
  reporting company. See the definitions of &#147;large accelerated filer,&#148;
  &#147;accelerated filer,&#148; and &#147;smaller reporting company&#148; in Rule 12b-2 of the
  Exchange Act. </P>
<DIV>
  <TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
    <TR vAlign=top>
      <TD align=left>[&nbsp;&nbsp; ] Large accelerated filer </TD>
      <TD align=left width="25%">[&nbsp;&nbsp; ] Accelerated filer </TD>
      <TD align=left width="25%">[&nbsp; &nbsp;] Non-accelerated filer </TD>
      <TD align=left width="25%">[X] Smaller Reporting </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left>&nbsp;</TD>
      <TD align=left width="25%">&nbsp;</TD>
      <TD align=left width="25%">(Do not check if smaller </TD>
      <TD align=left width="25%">company </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left>&nbsp;</TD>
      <TD align=left width="25%">&nbsp;</TD>
      <TD align=left width="25%">reporting company) </TD>
      <TD align=left width="25%">&nbsp;</TD>
    </TR>
  </TABLE>
</DIV>
<P align=justify>Indicate by check mark whether the registrant is a shell
  company (as defined in Rule 12b-2 of the Exchange Act). <BR>
  [&nbsp;&nbsp; ]
  Yes&nbsp;&nbsp;&nbsp;&nbsp; [X] No </P>
<P align=justify>Indicate the number of shares outstanding of each of the
  issuer&#146;s classes of common stock, as of the latest practicable date. </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>Class </TD>
    <TD align=center width="50%">Outstanding at September 5, 2013 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center><B><U>Common stock, $.001 par value </U></B></TD>
    <TD align=center width="50%"><B><U>63,465,597</U></B></TD>
  </TR>
</TABLE>
<BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_2></A>
<P align=center><B>AMERICAN PETRO HUNTER INC. </B><BR>
    <B>FORM 10-Q </B></P>
<P align=center><B>June 30, 2013 </B></P>
<P align=center><B>INDEX </B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=center width="8%" ><B>PAGE</B> </TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=center width="8%"  >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_4">PART
      I&#151;FINANCIAL INFORMATION </A></TD>
    <TD align=center width="8%" bgColor=#eeeeee >&nbsp;</TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=center width="8%"  >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_4">Item
      1. Financial Statements. </A></TD>
    <TD align=center width="8%" bgColor=#eeeeee ><A
      href="#page_4">4</A></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=center width="8%"  >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<A
      href="#page_F-1">Condensed
      Balance Sheets as of June 30, 2013 (Unaudited) and December 31, 2012 </A></TD>
    <TD align=center width="8%" bgColor=#eeeeee ><A
      href="#page_F-1">5</A></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=center width="8%"  >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left
      bgColor=#eeeeee>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<A
      href="#page_F-2">Condensed
      Statements of Operations for the three and six month periods ended June
      30, 2013 and 2012 (Unaudited) </A></TD>
    <TD align=center width="8%" bgColor=#eeeeee ><A
      href="#page_F-2">6</A></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=center width="8%"  >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left
      bgColor=#eeeeee>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<A
      href="#page_F-3">Condensed
      Statements of Cash Flows for the six month period ended June 30, 2013 and
      2012 (Unaudited) </A></TD>
    <TD align=center width="8%" bgColor=#eeeeee ><A
      href="#page_F-3">7</A></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=center width="8%"  >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<A
      href="#page_5">Notes
      to Condensed Financial Statements </A></TD>
    <TD align=center width="8%" bgColor=#eeeeee ><A
      href="#page_5">8</A></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=center width="8%"  >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_18">Item
      2. Management&#146;s Discussion and Analysis of Financial Condition and Results
      of Operations </A></TD>
    <TD align=center width="8%" bgColor=#eeeeee ><A
      href="#page_18">21</A></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=center width="8%"  >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_22">Item
      3. Quantitative and Qualitative Disclosures About Market Risk </A></TD>
    <TD align=center width="8%" bgColor=#eeeeee ><A
      href="#page_22">25</A></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=center width="8%"  >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_22">Item
      4. Controls and Procedures </A></TD>
    <TD align=center width="8%" bgColor=#eeeeee ><A
      href="#page_22">25</A></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=center width="8%"  >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_23">PART
      II&#151;OTHER INFORMATION </A></TD>
    <TD align=center width="8%" bgColor=#eeeeee >&nbsp;</TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=center width="8%"  >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_23">Item
      1. Legal Proceedings </A></TD>
    <TD align=center width="8%" bgColor=#eeeeee ><A
      href="#page_23">26</A></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=center width="8%"  >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_23">Item
      1A. Risk Factors </A></TD>
    <TD align=center width="8%" bgColor=#eeeeee ><A
      href="#page_23">26</A></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=center width="8%"  >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_23">Item
      2. Unregistered Sales of Equity Securities and Use of Proceeds </A></TD>
    <TD align=center width="8%" bgColor=#eeeeee ><A
      href="#page_23">26</A></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=center width="8%"  >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_23">Item
      3. Defaults Upon Senior Securities </A></TD>
    <TD align=center width="8%" bgColor=#eeeeee ><A
      href="#page_23">26</A></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=center width="8%"  >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_24">Item
      4. Mine Safety Disclosures </A></TD>
    <TD align=center width="8%" bgColor=#eeeeee ><A
      href="#page_24">27</A></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=center width="8%"  >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_24">Item
      5. Other Information </A></TD>
    <TD align=center width="8%" bgColor=#eeeeee ><A
      href="#page_24">27</A></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=center width="8%"  >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_24">Item
      6. Exhibits </A></TD>
    <TD align=center width="8%" bgColor=#eeeeee ><A
      href="#page_24">27</A></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=center width="8%"  >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_25">Signatures </A></TD>
    <TD align=center width="8%" bgColor=#eeeeee ><A
      href="#page_25">28</A></TD>
  </TR>
</TABLE>
<P align=center>2 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_3></A>
<P align=center><B>FORWARD-LOOKING STATEMENTS</B> </P>
<P
align=justify><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
  Report on Form 10-Q contains forward-looking statements within the meaning of
  the &#147;safe harbor&#148; provisions of the Private Securities Litigation Reform Act of
  1995. Reference is made in particular to the description of our plans and
  objectives for future operations, assumptions underlying such plans and
  objectives, and other forward-looking statements included in this report. Such
  statements may be identified by the use of forward-looking terminology such as
  &#147;may,&#148; &#147;expect,&#148; &#147;believe,&#148; &#147;estimate,&#148; &#147;anticipate,&#148; &#147;intend,&#148; &#147;continue,&#148; or
  similar terms, variations of such terms, or the negative of such terms. Such
  statements are based on management&#146;s current expectations and are subject to a
  number of factors and uncertainties, which could cause actual results to differ
  materially from those described in the forward-looking statements. Such
  statements address future events and conditions concerning, among others,
  capital expenditures, earnings, litigation, regulatory matters, liquidity and
  capital resources, and accounting matters. Actual results in each case could
  differ materially from those anticipated in such statements by reason of factors
  such as future economic conditions, changes in consumer demand, legislative,
  regulatory and competitive developments in markets in which we operate, results
  of litigation, and other circumstances affecting anticipated revenues and costs,
  and the risk factors set forth under the heading &#147;Risk Factors&#148; in our Annual
  Report on Form 10-K for the fiscal year ended December 31, 2012, filed on April
  15, 2013. </P>
<P
align=justify><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
  used in this Form 10-Q, &#147;we,&#148; &#147;us&#148; and &#147;our&#148; refer to American Petro-Hunter
  Inc., which is also sometimes referred to as the &#147;Company.&#148; </P>
<P align=center><B>YOU SHOULD NOT PLACE UNDUE RELIANCE ON THESE FORWARD LOOKING
  STATEMENTS </B></P>
<P
align=justify><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  forward-looking statements made in this report on Form 10-Q relate only to
  events or information as of the date on which the statements are made in this
  report on Form 10-Q. Except as required by law, we undertake no obligation to
  update or revise publicly any forward-looking statements, whether as a result of
  new information, future events, or otherwise, after the date on which the
  statements are made or to reflect the occurrence of unanticipated events. You
  should read this report and the documents that we reference in this report,
  including documents referenced by incorporation, completely and with the
  understanding that our actual future results may be materially different from
  what we expect or hope. </P>
<P align=center>3 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_4></A>
<P align=justify><B>Item 1.</B> <B>Financial Statements. </B></P>
<P align=center>4 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_F-1></A>
<P align=center><B><FONT size=4>American Petro-Hunter,
  Inc.</FONT></B><BR>
  <B><FONT size=3>Condensed Balance
    Sheets</FONT></B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="12%" align=center nowrap>(Unaudited) </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 align=left>&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="12%" align=center nowrap>June 30, </TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="12%" align=center nowrap>December 31, </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">2013 </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">2012 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><B>Assets </B></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>Current assets: </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%">&nbsp;148 </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%">&nbsp;16,216 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Accounts receivable </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>20,386 </TD>
    <TD 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>13,735 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Total current assets </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%">20,534 </TD>
    <TD 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%">29,951 </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>Investments in mineral properties, net of accumulated
      amortization of $167,675 and $132,499, respectively </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">1,590,328 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">1,582,324 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Capitalized financing costs, net of
      amortization of $15,256 and $6,737, respectively </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="12%" bgColor=#e6efff>186,244 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="12%" bgColor=#e6efff>41,263 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Total assets </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="12%" bgColor=#e6efff>&nbsp;1,797,106 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="12%" bgColor=#e6efff>&nbsp;1,653,538 </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><B>Liabilities and Stockholders' Equity
      (Deficit) </B></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>
    <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 liabilities: </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 other liabilities </TD>
    <TD vAlign=bottom align=left width="1%" >$</TD>
    <TD vAlign=bottom align=right width="12%">&nbsp;795,925 </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%">&nbsp;567,629 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Short term note from officer </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>39,200 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>39,200 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;&nbsp;&nbsp;Note payable - current, net of discount
      of $26,250 and $0 at June 30, 2013
      and&nbsp;<BR>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;December
      31, 2012, respectively </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">78,750 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Accrued interest </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>92,677 </TD>
    <TD vAlign=bottom align=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>41,073 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;Derivative liability </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%">17,396 </TD>
    <TD 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%">559 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B>Total
      current liabilities </B></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><B>1</B>,<B>023</B>,<B>948 </B></TD>
    <TD 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><B>648</B>,<B>461 </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>Long term liabilities: </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;Note payable, net of discount of $174,063
      and $178,471 at June 30, 2013
      and&nbsp;<BR>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;December
      31, 2012, respectively </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">443,937 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">359,529 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Convertible debenture </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>493,306 </TD>
    <TD 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>633,306 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Total long term
      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%">937,243 </TD>
    <TD 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%">992,835 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left
      bgColor=#e6efff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
      liabilities </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>1,961,191 </TD>
    <TD vAlign=bottom align=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>1,641,296 </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>Stockholders' equity: </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;Common stock, $0.001 par value,
      200,000,000 shares
      authorized,&nbsp;<BR>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;62,215,597
      and 47,620,406 shares issued and outstanding as
      of&nbsp;<BR>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;June 30,
      2013 and December 31, 2012, respectively </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">62,216 </TD>
    <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%">47,621 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp;&nbsp;&nbsp;Common stock to be
      issued; 6,433,034 and 6,423,708 shares as
      of&nbsp;<BR>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;June 30,
      2013 and December 31, 2012 </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>6,434 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>6,424 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;Additional paid-in capital </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">14,230,611 </TD>
    <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%">13,731,097 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Accumulated comprehensive gain
      (loss) </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>(12,131</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>4,706 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;Accumulated deficit </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%">(14,451,215</TD>
    <TD 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="12%">(13,777,606</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Total
      stockholders' equity </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>(164,085</TD>
    <TD 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>12,242 </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>Total liabilities and stockholders' equity </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="12%" bgColor=#e6efff>&nbsp;1,797,106 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="12%" bgColor=#e6efff>&nbsp;1,653,538 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
</TABLE>
<P align=justify>The accompanying notes are an integral part of these condensed
  financial statements</P>
<P align=center>5</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><FONT size=4>American Petro-Hunter,
  Inc.</FONT></B><BR>
  <B><FONT size=3>Condensed Statements of
    Operations</FONT></B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD colspan="4" align=center nowrap>For the three months ended </TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD colspan="4" align=center nowrap>For the six months ended </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 colspan="4" align=center nowrap>June 30, </TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD colspan="4" align=center nowrap>June 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">2013 </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">2012 </TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="12%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid">2013 </TD>
    <TD 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">2012 </TD>
    <TD align=left width="2%" >&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>Revenue </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="12%" bgColor=#e6efff>&nbsp;30,770 </TD>
    <TD 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>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="12%" bgColor=#e6efff>&nbsp;72,954 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="12%" bgColor=#e6efff>&nbsp;75,009 </TD>
    <TD 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="12%" bgColor=#e6efff>&nbsp;187,677 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Cost of Goods Sold </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="12%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="12%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="12%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <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; &nbsp;Production and amortization </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%">37,964 </TD>
    <TD 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%">47,567 </TD>
    <TD 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%">64,557 </TD>
    <TD 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%">120,220 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Gross profit </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%">(7,194</TD>
    <TD 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="12%">25,387 </TD>
    <TD 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%">10,452 </TD>
    <TD 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%">67,457 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>General and administrative </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">163,773 </TD>
    <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%">151,305 </TD>
    <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%">286,023 </TD>
    <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%">257,096 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Executive compensation </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>51,000 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>76,000 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>102,000 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>361,000 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Impairment expense </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="12%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="12%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="12%">- </TD>
    <TD 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%">256,737 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp; &nbsp;Total 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>214,773 </TD>
    <TD 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>227,305 </TD>
    <TD 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>388,023 </TD>
    <TD 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>874,833 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Net loss before other income (expense) </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>(221,967</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>(201,918</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>(377,571</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>(807,376</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>) </TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=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>Other income (expense): </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="12%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="12%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="12%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <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>Gain on forgiveness of debt </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">235,985 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">322,731 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Interest expense </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>(172,442</TD>
    <TD 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>(75,115</TD>
    <TD 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>(296,038</TD>
    <TD 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>(460,704</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp;Total other income (expense) </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%">(172,442</TD>
    <TD 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="12%">160,870 </TD>
    <TD 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%">(296,038</TD>
    <TD 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="12%">(137,973</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
  </TR>
  <TR>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=center width="12%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=center width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Net loss before income taxes </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">(394,409</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">(41,048</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">(673,609</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">(945,349</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
  </TR>
  <TR>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=center width="12%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=center width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Provision for income taxes </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="12%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="12%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="12%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="12%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Net loss </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">(394,409</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">(41,048</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">(673,609</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">(945,349</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
  </TR>
  <TR>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=center width="12%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=center width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Other comprehensive income (expense) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="12%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="12%">- </TD>
    <TD 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%">(16,837</TD>
    <TD 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="12%">8,114 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Comprehensive loss </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="12%">&nbsp;(394,409</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="12%">&nbsp;(41,048</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="12%">&nbsp;(690,446</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="12%">&nbsp;(937,235</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
  </TR>
  <TR>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Weighted average common shares outstanding - basic and
      fully diluted </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="12%">56,673,089 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="12%">46,656,635 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="12%">52,505,980 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="12%">40,196,644 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="12%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="12%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <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>Net loss per common share basic and fully diluted </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="12%">&nbsp;(0.007</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="12%">&nbsp;(0.001</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="12%">&nbsp;(0.013</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="12%">&nbsp;(0.023</TD>
    <TD vAlign=bottom align=left width="2%" >)</TD>
  </TR>
</TABLE>
<P align=justify>The accompanying notes are an integral part of these condensed
  financial statements</P>
<P align=center>6</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><FONT size=4>American Petro-Hunter, Inc. </FONT><BR>
  </B><B><FONT size=3>Condensed Statement of Cash
    Flows</FONT></B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD colspan="4" align=center nowrap>For the six months ended </TD>
    <TD align=center width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD colspan="4" align=center nowrap>June 30, </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">2013 </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">2012 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><B>Cash flows from operating activities </B></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) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>&nbsp;(673,609</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;(945,349</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
      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>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;Shares issued for compensation </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>- </B></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>189,000 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Amortization of
      discount </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">197,073 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">212,070 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;Impairment expense </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>256,737 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Amortization of
      mineral properties </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">35,176 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">60,808 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;Amortization of prepaid financing costs </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>8,518 </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; &nbsp; &nbsp; &nbsp; &nbsp;Stock and warrants
      issued for financing </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">704 </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>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;Gain on forgiveness of debt </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>(322,731</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Changes in operating assets and liabilities: </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; &nbsp;(Increase) decrease in
      accounts receivable </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>(6,651</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>26,043 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp;(Increase) decrease in prepaid expenses </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>- </B></TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">39,812 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Increase (decrease) in
      accounts payable and accrued liabilities </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>228,297 </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>246,238 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp;Increase (decrease) in accrued interest </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%">51,604 </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%">142,447 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Net cash used by operating 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>(158,888</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>(94,925</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><B>Cash flows from investing activities </B></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;Proceeds from sale of mineral properties </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>- </B></TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">106,000 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Acquisition of mineral
      properties </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>(43,180</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>(245,100</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Net cash used by investing activities </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%">(43,180</TD>
    <TD align=left width="2%" >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">(139,100</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>
  </TR>
  <TR vAlign=top>
    <TD align=left><B>Cash flows from financing activities </B></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;Short-term note from officer </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>- </B></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>39,200 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;Proceeds from sale of common stock </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">14,500 </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>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Proceeds from note
      payable </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>171,500 </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; &nbsp;Proceeds from convertible debenture </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%"><B>- </B></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%">198,000 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Net cash 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>186,000 </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>237,200 </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>Net increase (decrease) in cash </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>(16,068</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>3,175 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Cash - beginning </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%">16,216 </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%">2,609 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Cash - ending </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="12%"
    bgColor=#e6efff>&nbsp;148 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="12%"
    bgColor=#e6efff>&nbsp;5,784 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Supplemental disclosures: </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;Interest paid </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right
      width="12%">&nbsp;28,312 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right
      width="12%">&nbsp;43,750 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Income taxes paid </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="12%"
    bgColor=#e6efff>&nbsp;- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="12%"
    bgColor=#e6efff>&nbsp;- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Non-cash transactions: </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;Shares issued for compensation </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right
      width="12%">&nbsp;- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right
      width="12%">&nbsp;189,000 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Shares issued for capitalized
      financing costs </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="12%"
    bgColor=#e6efff>&nbsp;150,000 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="12%"
    bgColor=#e6efff>&nbsp;- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;Accounts payable converted to stock </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right
      width="12%">&nbsp;- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right
      width="12%">&nbsp;239,469 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Note payable and accrued
      interest converted to stock </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="12%"
    bgColor=#e6efff>&nbsp;130,000 </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>&nbsp;3,375,846 </TD>
    <TD align=left width="2%"
  bgColor=#e6efff>&nbsp;</TD>
  </TR>
</TABLE>
<P align=justify>The accompanying notes are an integral part of these condensed
  financial statements</P>
<P align=center>7</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_5></A>
<P align=center><B>American Petro-Hunter Inc. </B><BR>
    <B>Notes to Condensed
      Financial Statements </B><BR>
  <B>June 30, 2013 </B><BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>
  <TR>
    <TD vAlign=top width="5%"><B>1.</B> </TD>
    <TD><P align=justify><B>Nature and Continuance of Operations</B></P></TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify>American Petro-Hunter Inc. (the &#147;Company&#148;) was
      incorporated in the State of Nevada on January 24, 1996 as Wolf
      Exploration Inc. On March 17, 1997, Wolf Exploration Inc. changed its name
      to Wolf Industries Inc.; on November 21, 2000, they changed its name to
      Travelport Systems Inc., and on August 17, 2001, changed its name to
      American Petro- Hunter Inc.</P></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify>The Company is evaluating the acquisition of certain
      natural resource projects with the intent of developing such projects. The
      Company focus is currently in locating and assessing potential acquisition
      targets, including real property, oil and gas companies.</P></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify><B>Basis of presentation</B></P></TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify>The accompanying unaudited condensed financial statements
      contain all adjustments (consisting only of normal recurring adjustments)
      which, in the opinion of management, are necessary to present fairly the
      financial position of the Company as of June 30, 2013, and the results of
      its operations and cash flows for the six months ended June 30, 2013 and
      2012. Certain information and footnote disclosures required under
      accounting principles generally accepted in the United States of America
      (&#147;U.S. GAAP&#148;) have been condensed or omitted from the following condensed
      financial statements pursuant to the rules and regulations of the SEC. In
      the opinion of management, the accompanying financial statements include
      all adjustments, which are of a normal and recurring nature, necessary to
      present fairly our financial position and results of operations. Certain
      reclassifications have been made to prior periods to conform to current
      presentations.</P></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify>It is suggested that the following financial statements
      be read in conjunction with the financial statements and notes thereto
      included in the Company&#146;s annual report on Form 10-K for the year ended
      December 31, 2012. The Company does not believe there are any recently
      issued, but not yet effective, accounting standards that would have a
      significant impact on the Company&#146;s financial position or results of
      operations as of and for the six months ended June 30, 2013.</P></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify>The results of operations for the six months ended June
      30, 2013 and 2012 are not necessarily indicative of the results of the
      entire fiscal year or for any other period.</P></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify><B>Going Concern</B></P></TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify>These financial statements have been prepared in
      accordance with accounting principles generally accepted in the United
      States of America (&#147;GAAP&#148;) applicable to a going concern, which
      contemplates the realization of assets and the satisfaction of liabilities
      and commitments in the normal course of business. The Company has limited
      assets and requires additional funds to maintain its operations.
      Management&#146;s plan in this regard is to raise equity financing as required.
      There can be no assurance that sufficient funding will be obtained. The
      foregoing matters raise substantial doubt about the Company&#146;s ability to
      continue as a going concern. The financial statements do not include any
      adjustments relating to the recoverability and classification of recorded
      assets, or the amounts of and classification of liabilities that might be
      necessary in the event the Company cannot continue in existence.</P></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width="5%"><B>2.</B> </TD>
    <TD><P align=justify><B>Significant Accounting Policies</B></P></TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify>The following is a summary of significant accounting
      policies used in the preparation of these financial statements.</P></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify><B>Income taxes</B></P></TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify>The Company accounts for income taxes under FASB
      Codification Topic 740-10-25 (&#147;ASC 740-10-5&#148;). Under ASC 740-10-25,
      deferred tax assets and liabilities are recognized for the future tax
      consequences attributable to differences between the financial statement
      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. Under ASC
      740-10-25, the effect on deferred tax assets and liabilities of a change
      in tax rates is recognized in income in the period that includes the
      enactment date. See footnote 8 for further
      details.</P></TD>
  </TR>
</TABLE>
<P align=center>8</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_6></A>
<P style="MARGIN-LEFT: 5%" align=justify><B>Revenue Recognition <BR>
  </B>It is
  our policy that revenues will be recognized in accordance with ASC subtopic
  605-10. Under ASC 605-10, product revenues are recognized when persuasive
  evidence of an arrangement exists, delivery has occurred, the sales price is
  fixed and determinable and collectability is reasonably assured.</P>
<P style="MARGIN-LEFT: 5%" align=justify><B>Use of estimates <BR>
  </B>The
  preparation of financial statements, in conformity with accounting principles
  generally accepted in the United States, requires management to make estimates
  and assumptions that affect the reported amount of assets and liabilities and
  disclosure of contingent assets and liabilities at the date of the financial
  statements and the reported amounts of revenues and expenses during the
  reporting period. Actual results could differ from those estimates. </P>
<P style="MARGIN-LEFT: 5%" align=justify><B>Cash Equivalents <BR>
  </B>The Company
  maintains cash balances in interest and non-interest bearing accounts. For the
  purpose of these financial statements, all highly liquid cash and investments
  with a maturity of three months or less are considered to be cash equivalents. </P>
<P style="MARGIN-LEFT: 5%" align=justify><B>Net loss per share <BR>
  </B>In
  accordance with ASC subtopic 260-10, the basic loss per common share is computed
  by dividing net loss available to common stockholders by the weighted average
  number of common shares outstanding. Diluted loss per common share is computed
  similar to basic loss per common share except that the denominator is increased
  to include the number of additional common shares that would have been
  outstanding if the potential common shares had been issued and if the additional
  common shares were dilutive. For the three months and six months ended June 30,
  2013 and 2012, the denominator in the diluted EPS computation is the same as the
  denominator for basic EPS due to the anti-dilutive effect of the stock warrants
  and convertible debt on the Company&#146;s net loss. </P>
<P style="MARGIN-LEFT: 5%" align=justify><B>Financial instruments <BR>
  </B>The
  Company&#146;s financial instruments consist of cash and cash equivalents, accounts
  receivable, accounts payable, and notes payable. Unless otherwise noted, it is
  management&#146;s opinion that the Company is not exposed to significant interest, or
  credit risks arising from these financial instruments. The fair values of these
  financial instruments approximate their carrying values because of their
  relatively short-term maturities. See Note 5 for further details. </P>
<P style="MARGIN-LEFT: 5%" align=justify><B><U>Fair Value of Financial
  Instruments</U></B><B> <BR>
  </B>The Company has financial instruments whereby the
  fair value of the financial instruments could be different from that recorded on
  a historical basis in the accompanying balance sheets. The Company's financial
  instruments consist of cash, accounts receivable, accounts payable, and notes
  payable. The carrying amounts of the Company's financial instruments approximate
  their fair values as of June 30, 2013 and December 31, 2012, due to their
  short-term nature. See Note 5 for further details. </P>
<P style="MARGIN-LEFT: 5%" align=justify><B>Reclassifications <BR>
  </B>Certain
  reclassifications have been made to the prior years&#146; financial statements to
  conform to the current year presentation. These reclassifications had no effect
  on previously reported results of operations or retained earnings. </P>
<P style="MARGIN-LEFT: 5%" align=justify><B>Oil and Gas Properties<BR>
  </B>We
  follow the successful efforts method of accounting for oil and gas exploration
  and production activities. All costs for development wells, related plant and
  equipment, proved mineral interests in oil and gas properties are capitalized.
  Costs of exploratory wells are capitalized pending determination of whether the
  wells found proved reserves. Cost of wells that are assigned proved reserves
  remain capitalized. All other exploratory wells and costs are expensed.</P>
<P style="MARGIN-LEFT: 5%" align=justify>Depreciation, depletion and
  amortization of all capitalized costs of proved oil and gas producing properties
  are expensed using the straight-line method over the estimated life of each
  well. Period valuation provisions for impairment of capitalized costs of
  unproved mineral interests are expensed. The costs of unproved properties are
  excluded from amortization until the properties are proved.</P>
<P style="MARGIN-LEFT: 5%" align=justify>Unproved properties are assessed
  periodically individually when drilling and flow testing results indicate
  whether there is an economic resource or not. All capitalized costs associated
  with properties that have been determined to be a &#147;dry-hole&#148; or &#147;uneconomic&#148; are
  impaired when that determination is made. Proved properties are assessed
  periodically for impairment on an individual basis. Events that can
  trigger the test for possible impairment include significant decreases in
  the market value of a property, significant change in the extent or manner
  of use or change in property and the expectation that a property will be
  sold or otherwise disposed of significantly sooner than the previously
  estimated useful life. The assessment is done by comparing each property&#146;s
  carrying value to their associated estimated undiscounted future net cash
  flows. Impaired properties are written down to their estimated fair
  values. The resulting impairment would be expensed to operations as
  impairment expense in the period in which it was determined that the
  impairment was indicated and calculated.</P>
<P align=center>9</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_7></A><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>
  <TR>
    <TD vAlign=top width="5%"><B>3.</B> </TD>
    <TD><P align=justify><B>Recent Accounting Pronouncements</B></P></TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify>Management has reviewed recent accounting pronouncements
      issued by the FASB (including its Emerging Issues Task Force), the AICPA,
      and the SEC and they do not or are not believed by management to have a
      material impact on the Company's present or future financial
      statements</P></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width="5%"><B>4.</B> </TD>
    <TD><P align=justify><B>Investments in Mineral Properties</B></P></TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify>During the six months ended June 30, 2013, the Company
      invested $43,180 in one investment of mineral properties. During the year
      ended December 31, 2012, the Company invested a total of $355,242 in four
      mineral properties and exchanged a Poston Prospect well with a book value
      of $41,000 plus cash in the amount of $6,500 for partial payment on a well
      located in the Oklahoma prospect. Management reviewed the carrying amount
      of the Company&#146;s investments in its oil and gas properties as of the
      balance sheet date and recognized an impairment expense in the amount of
      $0 and $256,737 for the six months ended June 30, 2013 and 2012,
      respectively. As of June 30, 2013 and December 31, 2012, the estimated
      fair value of mineral properties totaled $1,590,328 and $1,582,324, net of
      accumulated amortization of $167,675 and $132,499, respectively. As of
      June 30, 2013, the Company has total capitalized costs of mineral
      properties (gross) of $1,758,003; $1,103,205 in proved properties and
      $654,798 in unproved properties. As of December 31, 2012, the Company has
      total capitalized costs of mineral properties (gross) of $1,714,822;
      $1,103,205 in proved properties and $611,617 in unproved properties.
      Capitalized costs of proved properties are amortized using the
      straight-line method over the estimated useful life of each well. Unproved
      properties are excluded from amortization. Amortization expense for the
      six months ended June 30, 2013 and 2012 was $35,176 and $60,808,
      respectively. A summary of investments follows:</P></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify><B>S&amp;W Oil &amp; Gas, LLC - Poston
      Prospect</B></P></TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify>On May 4, 2009, the Company entered into an Agreement
      with S&amp;W Oil &amp; Gas, LLC (&#147;S&amp;W&#148;) to participate in the drilling
      for oil in the Poston Prospect #1 Lutters in Southwest Trego County,
      Kansas (the &#147;Poston Prospect&#148;). Pursuant to the agreement, the Company
      paid $64,500 in exchange for a 25% working interest in the 81.5% net
      revenue interest in the Poston Prospect. Subsequent to acquiring the
      working interest, the Company paid $138,615 in capitalized development
      costs necessary for completion of the initial well and the drilling and
      completion of a second well in the Poston Prospect. In 2011, the Company
      recognized an impairment of the investment in the amount of $93,879.
      During the year ended December 31, 2012, the Company sold its interest in
      the Poston Prospect for cash in the amount of $69,500, resulting in a gain
      of $2,621. This well contributed approximately 5% of the Company&#146;s 2012
      revenue and 0% of the revenue for the six months ended June 30,
      2013.</P></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify><B>Oklahoma prospects</B></P></TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify>During 2010 and 2011, the Company acquired various
      working interest percentages ranging from 5% to 50%, from Bay Petroleum
      for mineral properties located in Oklahoma in exchange for cash totaling
      $1,992,330. During the year ended December 31, 2011, one well was
      determined to be a &#147;dry hole&#148; and its full $80,000 carrying value was
      impaired. During the year ended December 31, 2012, the Company acquired
      additional working interests in the Oklahoma prospects for cash in the
      amount of $355,242 and property valued at $41,000. During the year ended
      December 31, 2012, two of the wells were determined to be uneconomic and
      $565,737 of impairment was taken to reduce the properties to their fair
      value. The Oklahoma prospects wells contributed approximately 95% of the
      Company&#146;s 2012 revenue and 100% of the revenue for the six months ended
      June 30, 2013.</P></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width="5%"><B>5.</B> </TD>
    <TD><P align=justify><B>Fair Value Measurements</B></P></TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify>The Company adopted ASC Topic 820-10 at the beginning of
      2009 to measure the fair value of certain of its financial assets required
      to be measured on a recurring basis. The adoption of ASC Topic 820-10 did
      not impact the Company&#146;s financial condition or results of operations. ASC
      Topic 820-10 establishes a fair value hierarchy that prioritizes the
      inputs to valuation techniques used to measure fair value. The hierarchy
      gives the highest priority to unadjusted quoted prices in active markets
      for identical assets or liabilities (Level 1 measurements) and the lowest
      priority to unobservable inputs (Level 3 measurements). ASC Topic 820-10 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability. The three levels of the fair value hierarchy under ASC Topic 820-10 are described below: </P></TD>
  </TR>
</TABLE>
<P align=center>10</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_8></A>
<P style="MARGIN-LEFT: 10%" align=justify>Level 1 &#150; Valuations based on quoted
  prices in active markets for identical assets or liabilities that an entity has
  the ability to access. </P>
<P style="MARGIN-LEFT: 10%" align=justify>Level 2 &#150; Valuations based on quoted
  prices for similar assets and liabilities in active markets, quoted prices for
  identical assets and liabilities in markets that are not active, or other inputs
  that are observable or can be corroborated by observable data for substantially
  the full term of the assets or liabilities. </P>
<P style="MARGIN-LEFT: 10%" align=justify>Level 3 &#150; Valuations based on inputs
  that are supportable by little or no market activity and that are significant to
  the fair value of the asset or liability. </P>
<P style="MARGIN-LEFT: 5%" align=justify>The following table presents a
  reconciliation of all assets and liabilities measured at fair value on a
  recurring basis as 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%"  >&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%">Level 1 </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%">Level 2 </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%">Level 3 </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%">Total </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>June 30, 2013: </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 width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; &nbsp;Cash </TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="12%">&nbsp;148 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="12%">&nbsp;- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="12%">&nbsp;- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="12%">&nbsp;148 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Accounts receivable </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>20,386 </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>20,386 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; &nbsp;Accounts payable and other liab. </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%">(888,602</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>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">(888,602</TD>
    <TD align=left width="2%" >) </TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Derivative liability </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>(17,396</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>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>(17,396</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; &nbsp;Notes payable, net of discount </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%">(1,055,193</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>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">(1,055,193</TD>
    <TD align=left width="2%" >) </TD>
  </TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff>&nbsp;</TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff>&nbsp;</TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff>&nbsp;</TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff>&nbsp;</TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>December 31, 2012: </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 width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Cash </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>&nbsp;16,216 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>&nbsp;- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>&nbsp;- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>&nbsp;16,216 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; &nbsp;Accounts receivable </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%">13,735 </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%">13,735 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Accounts payable and other
      liab. </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>(608,702</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>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>(608,702</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; &nbsp;Derivative liability </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">(559</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>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">(559</TD>
    <TD align=left width="2%" >) </TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Notes payable, net of discount </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>(1,032,035</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>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>(1,032,035</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>
  <TR>
    <TD vAlign=top width="5%"><B>6.</B> </TD>
    <TD><P align=justify><B>Debt and Debt Guarantee</B></P></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify><B>Short term note from Officer</B></P></TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify>During the year ended December 31, 2012, the Company
      issued a promissory note in the amount of $39,200 for cash advances
      received from an officer of the Company. The note is non-interest bearing,
      unsecured and due on demand. As of June 30, 2013, no payments have been
      made to the officer and the note is still outstanding.</P></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify><B>Miscellaneous Notes Payable</B></P></TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify>On October 18, 2006, the Company issued a promissory note
      in the amount of $25,000. The note bears interest at a rate of 12% per
      annum, is unsecured and matured on May 18, 2007. On March 26, 2012, the
      holder of the note elected to convert the entire principal balance
      together with accrued interest of $21,819 into 187,277 shares of the
      Company&#146;s common stock at a conversion rate of $0.25 per share. As of
      December 31, 2012, there was no balance due on this note.</P></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify>In August 2011, the Company issued a promissory note in
      the amount of $71,000. The note bears interest at a rate of 24% per annum,
      is unsecured and due on demand. On April 30, 2012, the holder of the note
      elected to convert the entire principal balance together with accrued
      interest of $12,140 into 332,561 shares of the Company&#146;s common stock at a
      conversion rate of $0.25 per share. As of December 31, 2012, there was no
      balance due on this note.</P></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify>In December, 2011, the Company issued a promissory note
      in the amount of $79,980 to Centennial Petroleum Partners LLC (&#147;CPP&#148;). The
      note bears interest at a rate of 6% per annum, is unsecured and due on
      demand. On April 30, 2012, the holder of the note elected to convert the
      entire principal balance together with accrued interest of $2,688
      into 330,671 shares of the Company&rsquo;s common stock at a conversion rate of $0.25 per share. As of December 31, 2012, there was no balance due on this note.</P></TD>
  </TR>
</TABLE>
<P align=center>11</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_9></A>
<P style="MARGIN-LEFT: 5%" align=justify>In 2011, CPP was assigned the 6%
  royalty interest originally granted to Maxum Overseas Fund. The royalty interest
  was valued at $113,164 utilizing the present value of estimated future payments
  due over the remaining life of the wells. The liability was recorded with
  corresponding prepaid financing costs to be amortized over the remaining term of
  the debt. For the years ended December 31, 2012 and 2011, $42,436 and $35,364,
  respectively, was amortized into interest expense in relation to this prepaid.
  During the year ended December 31, 2012, in connection with the royalty
  termination agreement discussed below, the Company has recorded a gain of
  $77,800 on the forgiveness of future royalty payments of $108,746 net of the
  unamortized financing costs of $30,946. </P>
<P style="MARGIN-LEFT: 5%" align=justify>On July 3, 2012 in connection with the
  Purchase Agreement between the Company and ASYM Energy Opportunities, LLC, CPP
  agreed to enter into a royalty termination agreement, resulting in the
  elimination of their 6% royalty interest in exchange for anti-dilution
  protection with respect to the shares issued in the conversion of their note
  payable at a conversion rate of $0.25. The anti-dilution protection provides
  that in the event the Company issues warrants to a third party with an exercise
  price less than the conversion rate of $0.25, the Company will issue additional
  shares for the previous conversions equal to the difference between the number
  of shares calculated utilizing the variable ASYM warrant exercise price less the
  number of shares previously issued subject to a ceiling of 4.99% of the total
  outstanding shares of the Company. On July 3, 2012, the Company estimated the
  potential future number of anti-dilution share issuances required pursuant to
  the agreements to be 2,385,311 and recorded a derivative liability and
  corresponding comprehensive income (loss) in the amount of $333,943 representing
  the fair value of the potential anti-dilution shares on that date. As of
  December 31, 2012, the Company has authorized the issuance of 3,003,104 shares
  as a result of the anti-dilution provision and recorded a financing expense in
  the amount of $406,615, the fair value of the shares on the date of grant. As of
  December 31, 2012, CPP there were an additional 4,633 additional anti-dilution
  shares potentially issuable to meet the beneficial ownership ceiling as a
  result; the Company recorded a decrease in derivative liability of $333,664 and
  a corresponding change in comprehensive gain (loss). During the six months ended
  June 30, 2013, the Company authorized the issuance of an additional 4,633 shares
  as a result of the anti-dilution provision and recorded a financing expense in
  the amount of $233; the fair value of the shares on the date of the grant.
  During the six months ended June 30, 2013, the Company recorded an increase in
  derivative liability of $8,418 and a corresponding change in accumulated
  comprehensive gain (loss) on the balance sheet. As of June 30, 2013, the Company
  has not issued any of the shares discussed above and CPP is owed 3,007,767
  shares. These shares are recorded as owed but not issued on the balance
  sheet.</P>
<P style="MARGIN-LEFT: 5%" align=justify><B>Convertible Debentures - 2009 <BR>
  </B>In August and September of 2009, the issued two Secured Convertible
  Promissory Notes in the amount of $500,000 each to an investor for total
  proceeds of $1,000,000. The notes bear interest at a rate of 18% per annum, are
  secured by the assets of the Company, and matured on August 13 and September 15,
  2010, respectively. In accordance with the agreement, the Company is required to
  make monthly interest payments until the principal balances are paid in full.
  Additionally, the Company issued warrants to purchase up to 2,857,142 shares of
  the Company&#146;s common stock at an exercise price of $0.50. The warrants expired
  in 2011 and were unexercised. In March 2010, the holder elected to convert
  $350,000 of the notes into 1,000,000 shares of the Company&#146;s common stock at a
  conversion rate of $0.35 per share. In December 2010 and August 2011, the
  debentures were subsequently amended whereby extending the original maturity
  date to August 13 and September 15, 2012 and reducing the conversion rate from
  the lower of $0.35 or a 25% discount to the five day average trading price to
  the lower of $0.25 or a 25% discount to the five day average.</P>
<P style="MARGIN-LEFT: 5%" align=justify>On July 3, 2012, in connection with the
  Purchase Agreement between the Company and ASYM Energy Opportunities, LLC, the
  Company entered into a third amendment whereby the holder agreed to terminate
  his security interest in the assets of the Company, reduce the interest rate
  from 18% to 10% per annum upon receipt of the initial financing tranche of
  $1,000,000 and to revise the repayment terms, whereby the entire unpaid
  principle together with accrued interest will be payable in two equal
  installments upon successful financing obtained by the Company, but in no event
  later than December 31, 2014. The initial funding tranche of $1,000,000 has not
  been received, therefore this loan remains at an interest rate of 18% per annum. </P>
<P style="MARGIN-LEFT: 5%" align=justify>On March 4, 2013, $140,000 of the
  outstanding convertible debt was assigned to Magna Group, LLC. See &#147;Notes
  Payable &#150; Magna Group&#148; below for further details. Subsequent to June 30, 2013,
  an additional $65,000 of the outstanding convertible debt was assigned to Magna
  Group, LLC. </P>
<P align=center>12</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_10></A>
<P style="MARGIN-LEFT: 5%" align=justify>As of June 30, 2013 and December 31,
  2012, the principal balance related to this note totaled $$493,306 and $633,306,
  respectively, and is shown as a long term liability on the balance sheet. </P>
<P style="MARGIN-LEFT: 5%" align=justify><B>Convertible Debentures - 2010 <BR>
  </B>In 2010, the company entered into a Convertible Line of Credit Agreement
  with Maxum Overseas Fund (&#147;Maxum&#148;) in the amount of $1,500,000 and received an
  initial advance in the amount of $1,462,774. The line of credit bears interest
  at a rate of 24% per annum, is convertible at $0.90, and was secured by certain
  assets of the Company and due in full on May 17, 2011. In November of 2010, the
  Company amended the line of credit agreement to reduce the conversion price to
  $0.25 per share. In May and July of 2011, the Company entered into a third and
  fourth amendment to the line of credit whereby increasing the line of credit to
  $2,000,000 in exchange for a 3% royalty interest in production revenue generated
  by the Company. The Company was advances additional proceeds of $1,700,918. In
  August 2011, the agreement was further amended to extend the maturity date to
  November 17, 2012 and increase the line to $3,000,000 in exchange for an
  additional 3% royalty interest. The royalty interest was subsequently assigned
  by Maxum to Centennial Petroleum Partners, LLC (&#147;CPP&#148;). See CPP information
  above for further details on the royalty interest and its termination in 2012. </P>
<P style="MARGIN-LEFT: 5%" align=justify>In December 2011, the holder elected to
  convert $1,090,902 of the balance owed into 4,363,611 shares of the Company&#146;s
  common stock at a conversion rate of $0.25 per share. In the first quarter of
  2012, the Company was advanced an additional $198,000 against the line of credit
  and In March and April of 2012; the holder elected to convert the entire unpaid
  principle balance and accrued interest in the amount of $3,163,218 into
  12,652,869 shares of the Company&#146;s common stock at a conversion rate of $0.25.
  As of December 31, 2012 there is no balance on this note. Additionally, in 2012,
  Maxum agreed to forgive the finders&#146; fee and the Company recorded debt
  forgiveness of $158,185. As of December 31, 2012 and 2011, the Company recorded
  amortization expense related to the beneficial conversion feature in the amount
  of $212,070 and $646,760, respectively.</P>
<P style="MARGIN-LEFT: 5%" align=justify>On July 3, 2012 in connection with the
  Purchase Agreement between the Company and ASYM Energy Opportunities, LLC, the
  investor group agreed to enter into a lien termination agreement, resulting in
  the termination of their security interest in certain assets of the Company in
  exchange for anti-dilution protection with respect to the shares issued in the
  conversion of the line of credit at a conversion rate of $0.25 The anti-dilution
  protection provides that in the event the Company issues warrants to a third
  party with an exercise price less than the conversion rate of $0.25, the Company
  will issue additional shares for the previous conversions equal to the
  difference between the number of shares calculated utilizing the exercise price
  of the warrants less the number of shares previously issued subject to a ceiling
  of 4.99% of the total outstanding shares of the Company. The Company estimated
  the number of shares that could be issued pursuant to the agreements on July 3,
  2012 to be 2,576,975 and recorded a derivative liability and corresponding
  comprehensive income (loss) in the amount of $360,776 representing the fair
  value of the shares on that date. During the year ended December 31, 2012, the
  Company authorized the issuance of 3,003,104 shares as a result of the
  anti-dilution provision and recorded a financing expense in the amount of
  $425,468, the fair value of the shares on the date of grant. As of December 31,
  2012, there were an additional 4,633 additional anti-dilution shares potentially
  issuable to meet the beneficial ownership ceiling as a result; the Company
  recorded a decrease in derivative liability of $360,497 and a corresponding
  change in comprehensive gain (loss). During the six months ended June 30, 2013,
  the Company authorized the issuance of an additional 4,633 shares as a result of
  the anti-dilution provision and recorded a financing expense in the amount of
  $233; the fair value of the shares on the date of the grant. During the six
  months ended June 30, 2013, the Company recorded an increase in derivative
  liability of $8,418 and a corresponding change in accumulated comprehensive gain
  (loss) on the balance sheet. As of June 30, 2013, the Company has not issued any
  of the shares discussed above and Maxum is owed 3,007,767 shares. These shares
  are recorded as owed but not issued on the balance sheet.</P>
<P style="MARGIN-LEFT: 5%" align=justify><B>Note Payable &#150; ASYM</B> <BR>
  On July
  3, 2012, the Company entered into a Purchase Agreement with ASYM Energy
  Opportunities LLC (&#147;ASYM&#148;), pursuant to which ASYM agreed to provide up to
  $10,000,000 in debt financing to be advanced in approximately ten tranches of
  $1,000,000 each, with $300,000 of the initial tranche to be paid upon closing
  and the remaining $700,000 to be funded upon the satisfaction of certain
  conditions, including completion of due diligence by ASYM, satisfaction by the
  Company of certain financial tests, and the availability of funds of ASYM. Each
  tranche will be evidenced by a senior secured promissory note which bears
  interest at a rate of 15% per annum, with all tranches maturing on June 30, 2015
  at an amount equal to 110% of the principle amount funded. Additionally, each
  note is subject to early repayment in the event the Company does not meet
  certain financial covenants. In accordance with the agreement, the Company has issued a First Lien Security Agreement, Mortgage, Deed of Trust, Assignment of Production, Fixture Filing and Financing Statement to ASYM as collateral to the financing. In connection with each tranche of funding, the Company is required to issue a warrant to purchase shares of the Company&rsquo;s common stock equal to 83% the tranche amount, divided by the warrant exercise price. Additionally, the Company has entered into a Deposit Account Control Agreement with ASYM to perfect ASYM&rsquo;s security interest in certain bank accounts maintained by the Company. The Company is required to pay an administrative fee of $100,000 payable upon receipt of the second tranche of $1,000,000.</P>
<P align=center>13</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_11></A>
<P style="MARGIN-LEFT: 5%" align=justify>Further, pursuant to the Purchase
  Agreement, the Company entered into a perpetual Management Services Agreement
  with ASYM Management LLC ("ASYM Management") for managerial, financial,
  strategic and operational consulting services. The agreement expires only upon
  the sale, liquidation or dissolution of the Company or termination by ASYM
  Management. Pursuant to the terms of the agreement, the Company has agreed to
  pay a monthly management fee of $12,000 plus two percent of the unfunded balance
  of the Purchase Agreement. In addition, ASYM Management will be entitled to
  receive a warrant equal to 17% of the tranche amount divided by the exercise
  price of the warrant. </P>
<P style="MARGIN-LEFT: 5%" align=justify>In March of 2013, the Company amended
  its agreement with ASYM Management to raise the monthly management fee to
  $20,000 per month and to eliminate the fee on the unused portion of the funding.
  The amended agreement lowers the amount owed to ASYM as of March of 2013 by
  approximately $47,000 if the full balance owed to them is paid in full by July
  31, 2013. The amounts owed to ASYM were not paid in full by July 31, 2013, so
  the $47,000 was not forgiven. </P>
<P style="MARGIN-LEFT: 5%" align=justify>The aforementioned warrants had a
  variable exercise price computed based on the lesser of (i) $0.20, (ii) eighty
  five percent (85%) of the volume weighted average price per share of the
  Company&#146;s common stock for the fifteen days preceding the issuance of any
  tranche, or (iii) the trailing ninety (90) net average daily oil production
  multiplied by $40,000, the product of which is reduced by the Company&#146;s total
  liabilities, but not less than $500,000, and then divided by the Company&#146;s fully
  diluted number of common shares outstanding. Each warrant will have a term of
  five years from the date of issuance and will be limited to an amount where the
  underlying shares of common stock issuable upon exercise does not cause ASYM
  collectively, to exceed a 4.99% ownership interest in the Company. Upon exercise
  of any warrant, the warrant shares are subject to demand registration rights
  utilizing best efforts.</P>
<P style="MARGIN-LEFT: 5%" align=justify>On July 3, 2012, the Company estimated
  the number of shares underlying warrants that could be issued pursuant to the
  Purchase Agreement, while not exceeding an ownership interest of 4.99%, to be
  2,576,975 and recorded a derivative liability and corresponding comprehensive
  income (loss) in the amount of $354,049 representing the fair value of the of
  the warrants on that date. The warrants were valued utilizing the Black-Sholes
  Model and the following terms: i) five-year life ii) exercise price of $0.031
  iii) volatility of 181% iv) risk free rate of 0.69% and v) share price on the
  date of grant of $0.14. </P>
<P style="MARGIN-LEFT: 5%" align=justify>On July 6, 2012, the Company received
  $300,000 of the initial tranche and in accordance with the Purchase Agreement
  the Company granted two warrants to purchase a total of 2,576,975 shares of the
  Company&#146;s common stock, 2,138,889 to ASYM and 438,086 to ASYM Management, at an
  exercise price of $0.031 and recorded a financing expense in the amount of
  $354,049, the fair value of the warrants on the date of grant. On September 27,
  2012, the Company received additional proceeds of $180,000 due under the first
  tranche. As consideration for the limitation of funding the entire remaining
  $700,000 per the Purchase Agreement, ASYM agreed to a $0.35 exercise price for
  the warrant due them in connection with the September 27<SUP>th</SUP> funding.
  As a result, the Company granted two warrants to purchase a total of 376,209
  shares of the Company&#146;s common stock and recorded a financing expense in the
  amount of $59,124, the fair value of the warrants on the date of grant. The
  warrants were valued utilizing the Black-Sholes Model and the following terms:
  i) five-year life ii) exercise price of $0.2946 iii) volatility of 179% iv) risk
  free rate of 0.64% and v) share price on the date of grant of $0.16</P>
<P style="MARGIN-LEFT: 5%" align=justify>On November 19 and December 17, the
  Company received two additional tranches in the amount of $5,000 each. In
  accordance with the terms of the financing agreement the Company granted the
  issuance of two warrants to purchase 18,773 and 31,147, respectively in
  connection with the funding advances and recorded financing costs of $4,452. The
  warrants were valued utilizing the Black-Sholes Model and the following terms:
  i) five-year life ii) exercise price of $0.01 iii) volatility of 184%-185 iv)
  risk free rate of 0.64% -0.77% and v) share price on the date of grant of $0.12
  -$0.07. </P>
<P align=center>14</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_12></A>
<P style="MARGIN-LEFT: 5%" align=justify>On March 31, 2013, the Company and ASYM
  agreed to modify the terms of the July 3, 2012 agreement whereby eliminating the
  variable exercise price of each warrant grant due pursuant to the agreement to a
  fixed exercise price of $0.01 applicable to both past and future warrant grants.
  As a result of the retrospective modification of terms, the Company re-valued
  all warrants previously issued and recorded a financing expense in the amount of
  $174,683. As of December 31, 2012, the derivative liability related to the fair
  value of the variable number of warrants potentially issuable has been
  eliminated due to the fixed conversion rate.</P>
<P style="MARGIN-LEFT: 5%" align=justify>The ASYM agreement contains
  miscellaneous debt covenant requirements. As of December 31, 2012 and June 30,
  2013, the Company was not in compliance with those covenants. On March 28, 2013,
  ASYM granted the Company a waiver of those covenants through March 31, 2013 in
  return for a 3% overriding royalty interest in all existing and future
  properties and a $25,000 waiver fee. The $25,000 waiver fee was not paid but
  rather recorded as a tranche loan under the agreement. In accordance with the
  terms of the financing agreement the Company granted the issuance of two
  warrants to purchase 3,869 and 793, respectively in connection with the funding
  advances and recorded financing costs of $240. The warrants were valued
  utilizing the Black-Sholes Model and the following terms: i) five-year life ii)
  exercise price of $0.01 iii) volatility of 120.5% iv) risk free rate of 0.72%
  and v) share price on the date of grant of $0.055. </P>
<P style="MARGIN-LEFT: 5%" align=justify>Subsequent to June 30, 2013, ASYM
  granted an extension of the waiver of those covenants for all periods prior to
  September 10, 2013 in return for $25,000 waiver fee in the form of an additional
  tranche loan under the agreement and warrant stock.</P>
<P style="MARGIN-LEFT: 5%" align=justify>Subsequent to June 30, 2013, the
  Company received an additional tranche in the amount of $60,766.</P>
<P style="MARGIN-LEFT: 5%" align=justify><B>Notes Payable &#150; Magna Group <BR>
  </B>Effective March 4, 2013, in connection with the assignment of $140,000
  of outstanding convertible debt of the Company to Magna Group, LLC (&#147;Magna&#148;),
  the Company issued to Magna a Twelve Percent (12%) Convertible Note which
  matures on September 4, 2013. The Note provides that Magna, at any time, and the
  Company, on the maturity date, may convert any remaining outstanding principal
  balance and accrued interest under the Note into shares of common stock of the
  Company. The conversion price of the Note shall be equal to a forty five percent
  (45%) discount from the lowest trading price of the Company&#146;s common stock in
  the five days prior to the day Magna requests conversion. An additional eight
  percent (8%) discount will be applied if the Company&#146;s common stock is chilled
  for deposit at DTC and/or becomes chilled at any point while the Note is
  outstanding. In no event will the conversion price be less than $0.00004 per
  share. If at any time the Company issues any stock or grants options or warrants
  at a price per share less than the conversion price, then the conversion price
  will be reduced to such lesser amount. The Company may prepay the note at any
  time, upon three business days&#146; written notice, at a price equal to one hundred
  and fifty percent (150%) of the outstanding principal balance of the Note, plus
  accrued interest. This note contains a beneficial conversion feature that was
  calculated at $140,000 and a discount was recorded. The discount will be
  amortized over the six-month of the loan and adjusted for any conversions to
  common stock. During the six months ended June 30, 2013, $140,000 was amortized
  into interest expense in relation to the discount and the discount is $0 as of
  June 30, 2013.</P>
<P style="MARGIN-LEFT: 5%" align=justify>In March of 2013, the company issued
  1,305,034 shares of common stock in relation to a conversion of $40,000 of the
  Note.  In April of 2013, the Company entered into an exchange agreement with Magna which changed the conversion price to $.008.  During the three months ended, June 30, 2013, the company issued
  11,283,784 shares of common stock in relation to a conversion of $90,000 of the
  note. During the six months ended June 30, 2013, interest in the amount of
  $1,113 was accrued. As of June 30, 2013, the balance of the note was $10,000.
  Subsequent to June 30, 2013, Magna converted an additional $10,000 of the note
  into 1,250,000 shares of common stock and additional $65,000 of outstanding
  convertible debt of the Company was assigned. </P>
<P style="MARGIN-LEFT: 5%" align=justify><B>Notes Payable &#150; JMJ Financial <BR>
  </B>Effective March 27, 2013, the Company issued a convertible promissory
  note in the total possible amount of $335,000 and borrowed $50,000 under the
  note. The note bears no interest if repaid within ninety days and bears interest
  of 12% if not repaid within ninety days. The maturity date of each loan under
  this promissory note is one year from the date of the draw. The loan balance is
  convertible at the lesser of $0.075 or 60% of the lowest trade price in the 25
  trading days previous to the conversion. This note contains a beneficial
  conversion feature that was bifurcated out of the loan proceeds of the initial
  $50,000 draw. A discount on notes payable related to the beneficial conversion
  feature was recorded in the amount of $20,000 and will be amortized over the one
  year of the loan.</P>
<P align=center>15</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_13></A><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify>On June 27, 2013, the Company borrowed an additional
      $25,000 under the note. A discount on this notes payable related to the
      beneficial conversion feature was recorded in the amount of $10,000 and
      will be amortized over the one year of the loan.</P></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify>In June of 2013, the Company amended its agreement with
      JMJ Financial to change the conversion price to be the lesser of $0.01 or
      60% of the lowest trade price in the 25 trading days previous to the
      conversion. As of June 30, 2013, the note balance on this note is $75,000
      and no interest had been accrued.</P></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify><B>Notes Payable &#150; Hanover Holdings I, LLC</B></P></TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify>Effective March 4, 2013, the Company issued a convertible
      promissory note in the amount of $51,500. The note bears interest at 12%
      and matures on December 4, 2013. The loan balance is convertible at 55% of
      the lowest trade price in the 10 trading days previous to the conversion.
      This note contains a beneficial conversion feature that was bifurcated out
      of the loan proceeds. A discount on notes payable related to the
      beneficial conversion feature was recorded in the amount of $25,925 and
      will be amortized over the life of the loan. As of June 30, 2013, the note
      balance on this note is $51,500 and $2,012 of interest had been accrued.
      In April of 2013, the Company entered into an exchange agreement with
      Hanover which changed the maturity date of the note to November 4, 2014
      and changed the conversion price to $.008. The discount on the notes
      payable related to the beneficial conversion feature was increased by
      $13,768. The note balance is shown as a long term liability on the balance
      sheet.</P></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify>Effective April 25, 2013, the Company issued a
      convertible promissory note in the amount of $5,000. The note bears
      interest at 12% payable on December 26, 2013. As of June 30, 2013, the
      short term note balance was $5,000 with $97 accrued interest.</P></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD></TD>
    <TD><b>Notes Payable &ndash; Friesen</b></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD><P align=justify>Effective June 1, 2013, the Company issued a convertible promissory note in the amount of $15,000.  The note bears interest at 10% and matures one year from date of loan.  The loan balance is convertible at the lesser of $.01 or 25% discount to the average closing trading price during 5 trading days prior to conversion. This note contains a beneficial conversion feature that was bifurcated out of the loan proceeds of the initial $15,000 draw.  A discount on notes payable related to the beneficial conversion feature was recorded in the amount of $7,500 and will be amortized over the one year of the loan.</P></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify><B>Loan Guarantee</B></P></TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify>In 2004, the Company received a demand for payment from
      Canadian Western Bank (&#147;CWB&#148;) pursuant to a guarantee provided by the
      Company in favor of Calgary Chemical, a former subsidiary. The Company
      divested itself of Calgary Chemical in 1998 under an agreement with a
      former president and purchaser. The agreements included an indemnity
      guarantee from the purchaser of Calgary Chemical, whereby the purchaser
      would indemnify and save harmless the Company from any and all liability,
      loss, damage or expenses. Upon receipt of the demand, the Company accrued
      the estimated amount of the claim, $94,860 along with a comprehensive loss
      on foreign currency of $8,114, since in the opinion of legal counsel it is
      more likely than not that CWB would prevail in this action. As of December
      31, 2012, the Company has determined the loan guarantee is no longer valid
      due to its age and the statute of limitations. As a result, the Company
      recognized a gain on debt in the amount of $86,746 in the year ended
      December 31, 2012.</P></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify><B>Financing and interest expense</B></P></TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify>Financing and interest costs related to the Company&#146;s
      aforementioned financing activities for the six months ended June 30, 2013
      and 2012, totaled $296,038 and 460,704, respectively.</P></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width="5%"><B>7.</B> </TD>
    <TD><P align=justify><B>Stockholders&#146; Equity Transactions</B></P></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify><B>Common Stock</B></P></TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify>As of December 31, 2011, there are 32,867,028 shares of
      common stock issued and outstanding and no common stock owed but not
      issued.</P></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify>In January of 2012, the Company issued 900,000 shares of
      common stock in lieu of executive compensation. The shares were valued at
      $189,000, which was market value on the day of the grant.</P></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify>During the year December 31, 2012, the Company authorized
      the issuance of 767,500 shares of common stock for the conversion of
      $239,469 of accounts payable balances. As of the balance sheet date
      417,500 shares were unissued.</P></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify>During the year ended December 31, 2012, the Company
      authorized the issuance of 12,652,869 shares of common stock for the
      conversion of $3,163,218 in convertible debt and accrued interest as
      discussed in Note 6.</P></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify>During the year ended December 31, 2012, the Company
      authorized the issuance of 850,509 shares of common
      stock for the conversion of $212,628 in notes payable and accrued interest as discussed in Note 6. </P></TD>
  </TR>
</TABLE>
<P align=center>16</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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<A name=page_14></A>
<P style="MARGIN-LEFT: 5%" align=justify>During the year ended December 31,
  2012, the Company authorized the issuance of 6,006,208 shares of common stock
  valued at $832,083 in connection with the anti-dilution provisions provided to
  Maxum and CPP.</P>
<P style="MARGIN-LEFT: 5%" align=justify>As of December 31, 2012 there are
  47,620,406 shares of common stock issued and outstanding and 6,423,708 shares of
  common stock owed but not issued. </P>
<P style="MARGIN-LEFT: 5%" align=justify>During the six months ended June 30,
  2013, the Company issued 241,667 shares of common stock for cash of $14,500. </P>
<P style="MARGIN-LEFT: 5%" align=justify>During the six months ended June 30,
  2013, the Company issued 12,588,818 shares of common stock for the conversion of
  $130,000 in convertible debt as discussed in Note 6. </P>
<P style="MARGIN-LEFT: 5%" align=justify>During the six months ended June 30,
  2013, the Company issued 1,764,706 shares of common stock as a commitment fee in
  relation to the Hanover Holdings I, LLC agreement as discussed below. The shares
  were valued at $150,000 and capitalized as financing costs. The fee will be
  amortized over the two-year life of the agreement. </P>
<P style="MARGIN-LEFT: 5%" align=justify>As of June 30, 2013 there are
  62,215,597 shares of common stock issued and outstanding and 6,433,034 shares of
  common stock owed but not issued. </P>
<P style="MARGIN-LEFT: 5%" align=justify><B>Hanover Holdings I, LLC Purchase
  Agreement: <BR>
  |</B>On March 22, 2013, the Company entered into a common stock
  purchase agreement with Hanover Holdings I, LLC, a New York limited liability
  company (the &#147;<U>Investor</U>&#148;). The Purchase Agreement provides that, upon the
  terms and subject to the conditions set forth therein, the Investor is committed
  to purchase up to $5,000,000 worth of the Company&#146;s common stock over the
  24-month term of the Purchase Agreement. </P>
<P style="MARGIN-LEFT: 5%" align=justify>From time to time over the term of the
  Purchase Agreement, commencing on the trading day immediately following the date
  on which the initial registration statement is declared effective by the
  Securities and Exchange Commission (the &#147;<U>Commission&#148;</U>), as further
  discussed below, the Company may, in its sole discretion, provide the Investor
  with draw down notices to purchase a specified dollar amount of Shares over a 10
  consecutive trading day period commencing on the trading day specified in the
  applicable Draw Down Notice, with each draw down subject to the limitations
  discussed below. The maximum amount of Shares requested to be purchased pursuant
  to any single Draw Down Notice cannot exceed 300% of the average daily trading
  volume of the Company&#146;s common stock for the 10 trading days immediately
  preceding the date of the Draw Down Notice.</P>
<P style="MARGIN-LEFT: 5%" align=justify>Once presented with a Draw Down Notice,
  the Investor is required to purchase a pro rata portion of the applicable Draw
  Down Amount on each trading day during the applicable Pricing Period on which
  the daily volume weighted average price for the Company&#146;s common stock (the
  &#147;<U>VWAP</U>&#148;) equals or exceeds a floor price determined by the Company for
  such draw down (the &#147;<U>Floor</U> <U>Price</U>&#148;). If the VWAP falls below the
  applicable Floor Price on any trading day during the applicable Pricing Period,
  the Purchase Agreement provides that the Investor will not be required to
  purchase the pro rata portion of the applicable Draw Down Amount allocated to
  that trading day. The per share purchase price for the Shares subject to a Draw
  Down Notice shall be equal to 90.0% of the arithmetic average of the three
  lowest VWAPs that equal or exceed the applicable Floor Price during the
  applicable Pricing Period; provided, however, that if the VWAP does not equal or
  exceed the applicable Floor Price for at least three trading days during the
  applicable Pricing Period, then the per share purchase price shall be equal to
  90.0% of the arithmetic average of all VWAPs that equal or exceed the applicable
  Floor Price during such Pricing Period. Each purchase pursuant to a draw down
  shall reduce, on a dollar-for-dollar basis, the Total Commitment under the
  Purchase Agreement. </P>
<P style="MARGIN-LEFT: 5%" align=justify>The Company is prohibited from issuing
  a Draw Down Notice if (i) the amount requested in such Draw Down Notice exceeds
  the Maximum Draw Down Amount, (ii) the sale of Shares pursuant to such Draw Down
  Notice would cause the Company to issue or sell or the Investor to acquire or
  purchase an aggregate dollar value of Shares that would exceed the Total
  Commitment, or (iii) the sale of Shares pursuant to the Draw Down Notice would
  cause the Company to sell or the Investor to purchase an aggregate number of
  shares of the Company&#146;s common stock which would result in beneficial ownership
  by the Investor of more than 4.99% of the Company&#146;s common stock (as calculated
  pursuant to Section 13(d) of the Securities Exchange Act of 1934, as amended,
  and the rules and regulations thereunder). The Company cannot make more than one draw down in any
  Pricing Period and must allow 24 hours to elapse between the completion of
  the settlement of any one draw down and the commencement of a Pricing
  Period for any other draw down.</P>
<P align=center>17</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_15></A><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify>The Purchase Agreement contains customary
      representations, warranties and covenants by, among and for the benefit of
      the parties. The Purchase Agreement may be terminated at any time by the
      mutual written consent of the parties. Unless earlier terminated, the
      Purchase Agreement will terminate automatically on the earlier to occur of
      (i) the first day of the month next following the 24-month anniversary of
      the date on which the initial registration statement is declared effective
      by the Commission or (ii) the date on which the Investor purchases the
      Total Commitment worth of common stock under the Purchase Agreement. Under
      certain circumstances set forth in the Purchase Agreement, the Company and
      the Investor each may terminate the Purchase Agreement on one trading days
      prior written notice to the other.</P></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify>The Company paid to the Investor a commitment fee for
      entering into the Purchase Agreement equal to $150,000 (or 3.0% of the
      Total Commitment under the Purchase Agreement) in the form of 1,764,706
      restricted shares of the Company&#146;s common stock, calculated at a price
      equal to $0.085 per share, which was the closing price of our Common Stock
      on March 4, 2013. The Commitment shares were issued in March of
      2013.</P></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify>The Company also agreed to pay up to $15,000 of
      reasonable attorneys' fees and expenses (exclusive of disbursements and
      out-of-pocket expenses) incurred by the Investor in connection with the
      preparation, negotiation, execution and delivery of the Purchase Agreement
      and related transaction documentation. Further, if the Company issues a
      Draw Down Notice and fails to deliver the shares to the Investor on the
      applicable settlement date, and such failure continues for 10 trading
      days, the Company agreed to pay the Investor, in addition to all other
      remedies available to the Investor under the Purchase Agreement, an amount
      in cash equal to 2.0% of the purchase price of such shares for each 30-day
      period the shares are not delivered, plus accrued interest.</P></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify>The Purchase Agreement also provides for indemnification
      of the Investor and its affiliates in the event that the Investor incurs
      losses, liabilities, obligations, claims, contingencies, damages, costs
      and expenses related to a breach by the Company of any of its
      representations and warranties under the Purchase Agreement or the other
      related transaction documents or any action instituted against the
      Investor or its affiliates due to the transactions contemplated by the
      Purchase Agreement or other transaction documents, subject to certain
      limitations.</P></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify><B>Warrants</B></P></TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify>During the year ended December 31, 2011, the Company
      issued 200,000 warrants in relation to a stock sale as described in above.
      The warrants have a $0.40 exercise price and a two-year life. The warrants
      expire on November 7, 2013.</P></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify>During the year ended December 31, 2012, the Company
      issued 3,003,104 warrants in connection with the ASYM Purchase Agreement
      discussed in Note 6. The warrants are exercisable for a term of five years
      and at a strike price of $0.01. These warrants expire in the third and
      fourth quarter of 2017.</P></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify>As of December 31, 2012, there are 3,203,104 warrants
      outstanding at a weighted average exercise price of $0.0344.</P></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify>During the six months ended June 30, 2013, the Company
      issued an additional 4,662 warrants in connection with the ASYM Purchase
      Agreement discussed in Note 6. The warrants are exercisable for a term of
      five years and at a strike price of $0.01. These warrants expire in the
      first quarter of 2018.</P></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify>As of June 30, 2013, there are 3,207,766 warrants
      outstanding at a weighted average exercise price of $0.0343.</P></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width="5%"><B>8.</B> </TD>
    <TD><P align=justify><B>Income Taxes</B></P></TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify>The Company follows ASC subtopic 740-10 (formerly
      Statement of Financial Accounting Standard No. 109, &#147;Accounting for Income
      Taxes&#148;) for recording the provision for income taxes. ASC 740-10 requires
      the use of the asset and liability method of accounting for income taxes.
      Under the asset and liability method, deferred tax assets and liabilities
      are computed based upon the difference between the financial statement and
      income tax basis of assets and liabilities using the enacted marginal tax
      rate applicable when the related asset or liability is expected to be
      realized or settled. Deferred income tax expenses or benefits are
      based on the changes in the asset or liability each period. If available
      evidence suggests that it is more likely than not that some portion or all
      of the deferred tax assets will not be realized, a valuation allowance is
      required to reduce the deferred tax assets to the amount that is more
      likely than not to be realized. Future changes in such valuation allowance
      are included in the provision for deferred income taxes in the period of
      change.</P></TD>
  </TR>
</TABLE>
<P align=center>18</P>
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<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify>Deferred income taxes may arise from temporary
      differences resulting from income and expense items reported for financial
      accounting and tax purposes in different periods. Deferred taxes are
      classified as current or non-current, depending on the classification of
      assets and liabilities to which they relate. Deferred taxes arising from
      temporary differences that are not related to an asset or liability are
      classified as current or non-current depending on the periods in which the
      temporary differences are expected to reverse.</P></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify>The Company&#146;s effective income tax rate is higher than
      would be expected if the federal statutory rate were applied to income
      before tax, primarily because of expenses deductible for financial
      reporting purposes that are not deductible for tax purposes. The Company&#146;s
      operations for the years ended December 31, 2012 and the six months ended
      June 30, 2013 resulted in losses. Accordingly, no provisions for current
      income taxes have been reflected in the accompanying statements of
      operations.</P></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify>As of December 31, 2012 and June 30, 2013, the Company
      has total net operating loss carryforwards of approximately $10,500,000
      which may or may not be used to reduce future income taxes payable.
      Current federal tax law limits the amount of loss available to offset
      against future taxable income when a substantial change in ownership
      occurs. Therefore, the amount of these losses available to offset future
      taxable income may be limited. A valuation allowance has been recorded to
      reduce the net benefit recorded in the financial statements related to
      this deferred asset to $0. The valuation allowance is deemed necessary as
      a result of the uncertainty associated with the ultimate realization of
      these deferred tax assets. Accordingly, no provisions for deferred income
      taxes have been reflected in the accompanying statements of
      operations.</P></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width="5%"><B>9.</B> </TD>
    <TD><P align=justify><B>Related Party Transactions</B></P></TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify>During the six months ended June 30, 2013 and 2012, the
      Company granted no shares and 900,000 shares, respectively, to directors
      and officers in lieu of executive compensation.</P></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify>During the six months ended June 30, 2013, the Company
      reimbursed an officer approximately $5,967 in connection with travel,
      lodging and meals. During the six months ended June 30, 2012, the Company
      reimbursed an officer $10,996 for a residential lease and related
      utilities in Wichita, Kansas, which was being used as the corporate
      offices. The Company also reimbursed the officer approximately $9,810 in
      connection with travel, lodging and meals.</P></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify>During the year ended December 31, 2012, an
      officer/director loaned the company $39,200 for the purchase of mineral
      properties as discussed in note 6. As of June 30, 2013, the loan is still
      outstanding.</P></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify>As noted in note 7, during the year December 31, 2012,
      the Company authorized the issuance of 767,500 shares of common stock for
      the conversion of $239,469 of accounts payable balances. As of the June
      30, 2013 and December 31, 2012, 417,500 shares were unissued. $173,205 of
      the accounts payable converted was held by officers/directors of the
      Company.</P></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width="5%"><B>10.</B> </TD>
    <TD><P align=justify><B>Subsequent Events</B></P></TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify>In preparing these financial statements, the Company has
      evaluated events and transactions for potential recognition or disclosure
      through the date the financial statements were issued.</P></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify>During July of 2013, the Company received another tranche
      from ASYM in the amount of $60,766.</P></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify>During August of 2013, $10,000 of notes payable was
      converted into 1,250,000 shares of common stock. On August 20, 2013,
      $65,000 of the outstanding convertible debt was assigned to Magna Group,
      LLC.</P></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify>On August 27, 2013, Magna Group loaned an additional
      $25,000 to the Company.</P></TD>
  </TR>
</TABLE>
<P align=center>19</P>
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<P style="MARGIN-LEFT: 5%" align=justify>On September 5, 2013, ASYM granted an
  extension of the waiver of those covenants for all periods prior to September
  10, 2013 in return for $25,000 waiver fee in the form of an additional tranche
  loan under the agreement and warrant stock associated with the tranche.</P>
<P align=center>20</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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<A name=page_18></A>
<P align=justify><B>Item 2.</B> <B>Management&#146;s Discussion and Analysis of
  Financial Condition and Results of Operations. </B></P>
<P
align=justify><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  following discussion should be read in conjunction with our financial statements
  and notes thereto included elsewhere in this quarterly report. Forward-looking
  statements are statements not based on historical information and which relate
  to future operations, strategies, financial results, or other developments.
  Forward-looking statements are based upon estimates, forecasts, and assumptions
  that are inherently subject to significant business, economic, and competitive
  uncertainties and contingencies, many of which are beyond our control and many
  of which, with respect to future business decisions, are subject to change.
  These uncertainties and contingencies can affect actual results and could cause
  actual results to differ materially from those expressed in any forward-looking
  statements made by us, or on our behalf. We disclaim any obligation to update
  forward-looking statements. </P>
<P align=justify><B>Background </B></P>
<P
align=justify><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
  are an oil and natural gas exploration and production (E&amp;P) company with
  current projects in Payne and Lincoln Counties in Oklahoma. As of September 5,
  2013, we have six producing wells in Oklahoma. We also have ownership of 1,410.7
  net acres and rights for the exploration and production of oil and gas on an
  aggregate of approximately 4,733.8 gross acres in Oklahoma. This includes rights
  to explore on 1,847 gross acres in Oklahoma in the North Oklahoma Mississippi
  Project and in 2,886 gross acres in south-central Oklahoma (the &#147;South Oklahoma
  Project&#148;). In 2012, oil sales from our producing wells averaged 13.1 cumulative
  barrels per day. </P>
<P
align=justify><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Typically,
  our interest in a well arises from a contract with another entity pursuant to
  which we provide financial support for certain costs incurred in the exploration
  and development of a project, which may include land costs, seismic or other
  exploration, and test drilling. In exchange, we typically receive an interest in
  the proceeds from the project&#146;s production. </P>
<P
align=justify><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
  were formed on January 24, 1996 pursuant to the laws of the State of Nevada
  under the name Wolf Exploration, Inc. In August 2001, we changed our name to
  American Petro-Hunter Inc. and began focusing our business on the exploration
  and eventual exploitation of oil and gas. The Company operates from its offices
  at 250 N Rock Rd., Suite 365 Wichita, KS.</P>
<P align=justify><U>Producing Properties</U> </P>
<P
align=justify><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>North
  Oklahoma Project (North Oklahoma Woodford &#147;Yale&#148; and North Oklahoma Mississippi
  Lime Projects) </I>- On April 21, 2010, we entered into an operating agreement
  with Bay Petroleum Corp. (&#147;Bay&#148;) to participate in the drilling for oil in
  northern Oklahoma (the &#147;Prospect&#148;). Pursuant to such operating agreement, we
  agreed to pay to Bay $52,125 for all costs in connection with the acquisition
  and operation of the Prospect, up to the drilling of an initial test well, in
  exchange for a 25% working interest and 80% net revenue interest in the
  Prospect. We are also responsible for 25% of all expenditures in connection with
  the development and operation of the Prospect for drilling.</P>
<P
align=justify><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
  June 1, 2010, we announced that the No. 1 well had been put into production. The
  well produced 1,638 barrels in 2012 at an average of 4.4 barrels per day. The
  current daily rate is 5 barrels per day. </P>
<P
align=justify><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
  June 29, 2011, we announced that NOS122, a re-entry project where the well bore
  and casing was opened and cleaned, had begun commercial production. Inaugural
  loads of oil began shipping in July of 2011. The well produced 888 barrels in
  2012 at a rate of 2.43 barrels per day. On October 1, 2012 we announced the
  commencement of drilling of the NOS222 oil and gas well in Payne County,
  Oklahoma. The well is an offset to the NOS122. On October 15, 2012 we announced
  that the completion program was underway. It was determined, after the program
  was completed that the Skinner sand portion, the primary objective of the well,
  was the only viable commercial producer. Currently, the NOS 122 and 222 wells
  are co-mingled to one tank battery and produce a combined 4-6 barrels per day,
  and sell one 160 barrel load of oil every other month. </P>
<P
align=justify><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
  March 25, 2011, we announced that we had acquired a varied working interest in
  an additional 2,000 acres located in Payne County in northern Oklahoma, near the
  Company&#146;s Yale Prospect. The project has been named &#147;North Oklahoma Mississippi
  Lime Project&#148;. On May 16, 2011, we announced that drilling operations had
  commenced at the Company&#146;s first horizontal well, NOM1H. The Company owns a 25%
  Working Interest in the lease. On June 29, 2011, we announced that NOM1H had
  begun commercial production. The well produced 5,199 barrels in 2012 at a rate
  of 14.2 barrels per day. Daily gas production is in the 50 Mcf/day
  range. </P>
<P align=center>21</P>
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<P
align=justify><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
  July 27, 2011 we announced the NOW2H, an 80 acre offset to NOM1H. On November 7,
  2011, the well commenced commercial oil and gas production. On March 26, 2012,
  we announced that after undergoing a second frack and the installation of a
  submersible pump, the well was producing at a daily rate of 30 barrels per day.
  Since that time the well has drastically declined and produced a total of 888
  barrels in 2012, and 5,837 Mcf of gas. The well is currently no longer
  economically viable, has had no sales since June of 2012, and would require
  re-drilling of the lateral and re-completion to return to commercial viability.
  There are no plans at this time to implement this program. </P>
<P
align=justify><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
  January 9, 2012, we announced plans to drill a third horizontal well at the
  North Oklahoma Project, NOM3H, on the same section of land as our two previously
  completed wells, NOM1H and NOW2H. On February 6, 2012, we announced that we had
  drilled a total of 1,988 feet in the horizontal well segment penetrating into
  the 100 plus foot thick Mississippi pay zone. The NOM3H began commercial oil and
  gas production on March 7, 2012. The average daily rate of production during
  2013 has been 20 barrels of oil per day. Daily gas production is in the
  85Mcf/day range.</P>
<P
align=justify><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
  July 18, 2011, we announced drilling plans for a total of eleven horizontal
  wells at the North Oklahoma Project. As of September 5, 2013, there are at least
  eight locations left to drill on the acreage in each of the Woodford Shale and
  Mississippi Lime that would be horizontal wells spaced on 180 acres. We
  previously announced a drilling schedule that involved drilling one horizontal
  well approximately every 90 days. However, based on estimated engineering
  expenses of $3,200,000 for drilling and completion, we were unable to implement
  that drilling schedule. Our revised drilling schedule for 2013 is between one to
  three wells, depending upon available capital. </P>
<P
align=justify><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  next well planned is a direct offset to the NOM1H and is expected to cost
  $800,000 for our working interest share of the drilling and completion costs.
  The well is a Woodford Shale horizontal well and we plan to announce a drilling
  schedule once it is determined by the operator in April 2013. </P>
<P
align=justify><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>South
  Oklahoma Project</I> - On July 20, 2011, we announced the acquisition of a forty
  percent (40%) working interest in the South Oklahoma Project on 3,000 acres of
  land in south-central Oklahoma. Our engineers have identified five key areas
  which, if developed on 160 acre spacing, could allow future development of 18
  additional locations for horizontal Mississippi lime and Woodford Shale oil and
  gas wells.</P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </STRONG>On April 2, 2012, we announced the spud of the first well on the South
  Oklahoma Project, designated SOM-1H. On July 10, 2012, the well began commercial
  production. As of March 1, 2013, the well had cumulatively produced 5,696
  barrels of oil, with 4,618 barrels for the 2012 calendar year, and sales
  beginning in July 2012 at an average daily rate of 25.4 barrels per day. Current
  production has cumulatively produced 8,383 barrels of oil through July 31, 2013,
  at a daily rate of 12 barrels per day. Daily gas production is in the 32 Mcf/day
  range.</P>
<P
align=justify><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG><EM>&nbsp;&nbsp;&nbsp;&nbsp;
  Osage Kansas Project - </EM>On August 7, 2013 we announced that the Company has
  executed a term sheet for the acquisition of a 15,000 acre land package located
  in the Mississippian &#147;Osage&#148; of central Kansas. The agreement is for an 80%
  working interest (W.I.) and carries an 81.25% net revenue interest (N.R.I.).
  This will add 12,000 net acres to the Company&#146;s land ownership. The Company will
  be acting as the operator of the project and will be able to dictate the
  timeline for the lease development. Currently, we are
  finalizing purchase and sale agreements and a joint operating agreement, as well
  as undertaking land and engineering due diligence.</P>
<P align=justify><U>Customers</U></P>
<P
align=justify><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
  crude oil production is sold to Sunoco in Oklahoma. We receive Oklahoma spot
  prices for our oil and sell our oil in minimum allotments of 160 barrels. </P>
<P
align=justify><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
  have commercial sales of natural gas at our Oklahoma Project through our
  connection to nearby pipeline infrastructure. We sell natural gas through such
  pipeline to DCP Midstream, LP of Tulsa, Oklahoma and receive a premium to the
  NYMEX spot natural gas prices due to the higher BTU content of the gas produced. </P>
<P align=center>22</P>
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<P align=justify><B>Critical Accounting Policies</B> </P>
<P
align=justify><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  preparation of financial statements in conformity with United States generally
  accepted accounting principles (&#147;U.S. GAAP&#148;) requires management of our Company
  to make estimates and assumptions that affect the reported amounts of assets and
  liabilities, the disclosure of contingent assets and liabilities at the date of
  the financial statements and the reported amounts of revenues and expenses
  during the reporting periods. </P>
<P
align=justify><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  discussion and analysis of our financial condition and results of operations are
  based upon our financial statements, which have been prepared in accordance with
  U.S. GAAP. We believe certain critical accounting policies affect our more
  significant judgments and estimates used in the preparation of the financial
  statements. A description of our critical accounting policies is set forth in
  our Annual Report on Form 10-K for the year ended December 31, 2012. As of, and
  for the three months ended June 30, 2013, there have been no material changes or
  updates to our critical accounting policies.</P>
<P align=justify><B>Results of Operations </B></P>
<P
align=justify><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  following discussion of the financial condition, results of operations, cash
  flows, and changes in our financial position should be read in conjunction with
  our audited consolidated financial statements and notes included in our Annual
  Report on Form 10-K for the fiscal year ended December 31, 2012. </P>
<P
align=justify><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  financial statements mentioned above have been prepared in conformity with U.S.
  GAAP and are stated in United States dollars. </P>
<P align=justify><B>Comparison of six month periods ended June 30, 2013 and June
  30, 2012</B> </P>
<P
align=justify><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
  the six month periods ended June 30, 2013 and June 30, 2012, we incurred a
  comprehensive loss of $690,446 and $937,235, respectively. The decrease was
  largely attributed to a decrease in cost of goods sold of $55,663 and a decrease
  in executive compensation of $259,000. </P>
<P
align=justify><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General
  and administration expenses for the six month period ended June 30, 2013
  amounted to $286,023 compared to $257,096 in the same period of 2012. Executive
  compensation for the six month period ended June 30, 2013 was $102,000 compared
  to $361,000, in the same period of 2012. </P>
<P
align=justify><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
  the six month period ended June 30, 2013, we used net cash of $158,888 in
  operations. Net cash used in operating activities increased from $94,925 in the
  six month period ended June 30, 2012. </P>
<P
align=justify><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
  had no gain or loss on forgiveness of debt during the six month period ended
  June 30, 2013 as compared to a gain of $322,731 during the six month period
  ended June 30, 2012. </P>
<P align=justify><B>Comparison of three month periods ended June 30, 2013 and
  June 30, 2012 </B></P>
<P
align=justify><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
  the three month periods ended June 30, 2013 and June 30, 2012, we incurred a
  comprehensive loss of $394,409 and $41,048, respectively. The increase was
  largely attributed to a decrease in revenues of $42,184 and a decrease in gain
  on forgiveness of debt of $235,985. </P>
<P
align=justify><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General
  and administration expenses for the three month period ended June 30, 2013
  amounted to $163,773 compared to $151,305 in the same period of 2012. Executive
  compensation for the three month period ended June 30, 2013 was $51,000 compared
  to $76,000, in the same period of 2012. </P>
<P align=justify><B>Liquidity and Capital Resources </B></P>
<P
align=justify><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
  of June 30, 2013, we had cash of $148 and working capital deficiency of
  $1,003,414. During the three month period ended June 30, 2013, we funded our
  operations from revenue received, and proceeds of private sales of equity and
  notes. During the three month period ended June 30, 2013, we raised $45,000 from
  proceeds from a note payable. We are currently seeking further financing and we
  believe that will provide sufficient working capital to fund our operations for
  at least the next six months. Changes in our operating plans,
  increased expenses, acquisitions, or other events, may cause us to seek
  additional equity or debt financing in the future. For the three months ended
  June 30, 2013, we used net cash of $11,415 in operations. </P>
<P align=center>23</P>
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<P
align=justify><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
  June 24, 2013, we announced that we had entered into a common stock purchase
  agreement dated as of the Closing Date (the &#147;Purchase Agreement&#148;) with Hanover
  Holdings I, LLC, a New York limited liability company (&#147;Hanover&#148;). The Purchase
  Agreement provides that, upon the terms and subject to the conditions set forth
  therein including volume based share and price limitations, Hanover is committed
  to purchase up to $5,000,000 (the &#147;Total Commitment&#148;) worth of our common stock,
  $0.001 par value (the &#147;Shares&#148;), over the 24-month term of the Purchase
  Agreement, beginning on the trading day following the date on which a
  registration statement covering the resale of the Shares by Hanover is declared
  effective. The per share purchase price for the shares shall be equal to 90.0%
  of the arithmetic average of the three lowest volume weighted average prices for
  our common stock during the applicable pricing period that equal or exceed an
  applicable floor price equal to the product of (i) 0.70 and (ii) the volume
  weighted average price for the Company&#146;s common stock over the 10 trading days
  immediately preceding the date the draw down notice is delivered. We previously
  paid to Hanover, in March 2013, a commitment fee for entering into the Purchase
  Agreement equal to $150,000 (or 3.0% of the Total Commitment under the Purchase
  Agreement) in the form of 1,764,706 restricted shares of our common stock,
  calculated at a price equal to $0.085 per share, which was the closing price of
  our Common Stock on March 4, 2013. In connection with the execution of the
  Purchase Agreement, we agreed to file an initial registration statement with the
  Commission to register an agreed upon number of Shares, which shall not exceed
  1/3 of the number of shares of our common stock held by non-affiliates of the
  Company, which registration statement was filed on July 31, 2013 and declared
  effective as of September 4, 2013. </P>
<P
align=justify><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
  July 9, 2012, we announced that we entered into a three-year credit facility
  with ASYM Energy Partners LLC and its affiliates (&#147;ASYM&#148;), a private investment
  firm focused on the energy industry (the &#147;Credit Facility&#148;). The Credit Facility
  is secured by all of our assets. As of June 30, 2013 $515,000 has been advanced
  under the ASYM Credit Facility. Subsequent to the quarter ended June 30, 2013,
  in July 2013, the Company received an additional $60,766 was advanced under the
  ASYM Credit Facility. Additionally, on September 5, 2013, ASYM granted an
  extension of the waiver of covenants for all periods prior to September 10, 2013
  in return for a $25,000 waiver fee in the form of an additional tranche loan
  under the agreement and warrant stock associated with the tranche. We do not
  expect to receive additional funds from the ASYM Credit Facility at this time as
  we do not qualify under the agreement covenants. </P>
<P
align=justify><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  Company and ASYM agreed to modify the terms of the agreement with ASYM whereby
  eliminating the variable exercise price of each warrant grant due pursuant to
  the agreement to a fixed exercise price of $0.01 applicable to both past and
  future warrant grants.</P>
<P
align=justify><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On April 25, 2013, in exchange for the cancellation of existing indebtedness, the Company issued a promissory note in the principal amount of $71,000 to Magna Group, LLC (&ldquo;Magna&rdquo;) and promissory notes in the aggregate principal amount of $51,500 to Hanover Holdings I, LLC (&ldquo;Hanover&rdquo;), respectively (collectively, the &ldquo;Exchange Notes&rdquo;).  Each of the Exchange Notes is convertible into common stock of the Company at a fixed conversion price of $0.008 per share.  Additionally, on June 7, 2013, the Company issued to Hanover a convertible note in the principal amount of $5,000, convertible at a fixed conversion price of $0.008 per share (the &ldquo;June 2013 Note&rdquo;).  Subsequent to the quarter ended June 30, 2013, on August 27, 2013, Magna loaned an additional $25,000 to the Company.</P>
<P
align=justify><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective June 1, 2013, the Company issued a convertible promissory note in the amount of $15,000 to an investor.  The note bears interest at 10% and matures one year from date of loan.  The loan balance is convertible at the lesser of $0.01 or 25% discount to the average closing trading price during the five trading days prior to conversion. </P>
<P
align=justify><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On June 27, 2013, the Company borrowed $25,000 pursuant to the convertible promissory note issued March 27, 2013 to JMJ Financial.  The note bears no interest if repaid within ninety days and bears interest of 12% if not repaid within ninety dates.  The maturity date is one year from the date of the draw.  The loan balance is convertible at the lesser of $0.075 or 60% of the lowest trade price in the 25 trading days previous to the conversion.</P>
<P
align=justify><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
  the six months ended June 30, 2013, we raised we raised $171,500 from proceeds
  of notes payable. We also earned $75,009 in revenue during the six months ended
  June 30, 2013 from our producing wells. </P>
<P
align=justify><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On August 7, 2013 we announced that the Company has executed a term sheet for the acquisition of a 15,000 acre land package located in the Mississippian &ldquo;Osage&rdquo; of central Kansas.  The total purchase price is $5,400,000.  We currently have insufficient capital to make the total purchase price payment. We will need to secure additional debt or equity financing to pay such obligation, and there is no assurance that we will be able to raise the required capital on terms favorable to the Company, or that such capital will be available on any terms. </P>
<P
align=justify><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
  current cash requirements are significant due to planned exploration and
  development of current projects. We anticipate drilling one well in Oklahoma in
  2013 which is estimated to cost $800,000. Additionally, we have an aggregate
  of $144,200 in outstanding short term borrowings. We will need
  to secure additional debt or equity financing to pay such obligations as they
  become due. Accordingly, we expect to continue to use debt and equity financing
  to fund operations for the next twelve months, as we look to expand our asset
  base and fund exploration and development of our properties.</P>
<P align=center>24</P>
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<P
align=justify>&nbsp;&nbsp;&nbsp;<STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;Our
  management believes that we will be able to generate sufficient revenue or raise
  sufficient amounts of working capital through debt or equity offerings, as may
  be required to meet our short-term and long-term obligations. In order to
  execute on our business strategy, we will require additional working capital,
  commensurate with the operational needs of our planned drilling projects and
  obligations. Such working capital will most likely be obtained through equity or
  debt financings until such time as acquired operations are integrated and
  producing revenue in excess of operating expenses. There are no assurances that
  we will be able to raise the required working capital on terms favorable, or
  that such working capital will be available on any terms when needed. </P>
<P align=justify><B>Off-Balance Sheet Arrangements </B></P>
<P style="MARGIN-LEFT: 0%" align=justify><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There are no off-balance sheet
  arrangements. </P>
<P align=justify><B>Item 3. Quantitative and Qualitative Disclosures About
  Market Risk. </B></P>
<P style="MARGIN-LEFT: 0%" align=justify><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable. </P>
<P align=justify><B>Item 4. Controls and Procedures. </B></P>
<P
align=justify><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
  management with the participation and under the supervision of our Principal
  Executive Officer and Principal Financial Officer reviewed and evaluated the
  effectiveness of the design and operation of our disclosure controls and
  procedures (as defined by Rule 13a-15(e) or 15d-15(e)) of the Exchange Act Rule
  13a-15 as of the end of the period covered by this report. Based upon their
  evaluation, our Principal Executive Officer and Principal Financial Officer
  concluded that, as of the end of such period, our disclosure controls and
  procedures are not effective as of June 30, 2013 in ensuring that information
  required to be disclosed by us in reports that we file or submit under the
  Exchange Act is recorded, processed, summarized, and reported within the time
  periods specified in the Securities and Exchange Commission&#146;s rules and forms.
  This conclusion is based on findings that constituted material weaknesses. A
  material weakness is a deficiency, or a combination of control deficiencies, in
  internal control over financial reporting such that there is a reasonable
  possibility that a material misstatement of the Company&#146;s interim financial
  statements will not be prevented or detected on a timely basis. </P>
<P align=justify><B>Management&#146;s Report on Internal Control Over Financial
  Reporting </B></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </STRONG>In performing the above-referenced assessment, our management
  identified the following material weaknesses: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>
  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">i) </TD>
    <TD><P align=justify>We have not achieved the optimal level of segregation of
      duties relative to key financial reporting functions.</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%">ii) </TD>
    <TD><P align=justify>We have insufficient quantity of dedicated resources and
      experienced personnel involved in reviewing and designing internal
      controls. As a result, a material misstatement of the interim and annual
      financial statements could occur and not be prevented or detected on a
      timely basis.</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%">iii) </TD>
    <TD><P align=justify>We did not perform an entity level risk assessment to
      evaluate the implication of relevant risks on financial reporting,
      including the impact of potential fraud related risks and the risks
      related to non-routine transactions, if any, on our internal control over
      financial reporting. Lack of an entity-level risk assessment constituted
      an internal control design deficiency which resulted in more than a remote
      likelihood that a material error would not have been prevented or
      detected, and constituted a material weakness.</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%">iv) </TD>
    <TD><P align=justify>We did not have an audit committee or an independent
      audit committee financial expert. While not being legally obligated to
      have an audit committee or independent audit committee financial expert,
      it is the management&#146;s view that to have an audit committee, comprised of
      independent board members, and an independent audit committee financial
      expert is an important entity-level control over our financial
      statements.</P></TD>
  </TR>
</TABLE>
<P align=center>25</P>
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<A name=page_23></A>
<P
align=justify><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
  are currently reviewing our disclosure controls and procedures related to these
  material weaknesses and expect to implement changes as our financial situation
  allows, including identifying specific areas within our governance, accounting
  and financial reporting processes to add adequate resources and personnel to
  potentially mitigate these material weaknesses. </P>
<P
align=justify><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
  present management will continue to monitor and evaluate the effectiveness of
  our internal controls and procedures and our internal controls over financial
  reporting on an ongoing basis and are committed to taking further action and
  implementing additional enhancements or improvements, as necessary and as funds
  allow. </P>
<P
align=justify><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Because
  of its inherent limitations, internal control over financial reporting may not
  prevent or detect misstatements. Projections of any evaluation of effectiveness
  to future periods are subject to the risk that controls may become inadequate
  because of changes in conditions, or that the degree of compliance with the
  policies or procedures may deteriorate. All internal control systems, no matter
  how well designed, have inherent limitations. Therefore, even those systems
  determined to be effective can provide only reasonable assurance with respect to
  financial statement preparation and presentation. </P>
<P
align=justify><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There
  were no changes in our internal controls over financial reporting that occurred
  during the quarterly period ended June 30, 2013 that have materially affected,
  or are reasonably likely to materially affect, our internal controls over
  financial reporting. </P>
<P align=center><B>PART II</B>&#151;<B>OTHER INFORMATION </B></P>
<P align=justify><B>Item 1. Legal Proceedings. </B></P>
<P
align=justify><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;From
  time to time, we may become involved in various lawsuits and legal proceedings
  which arise in the ordinary course of business. However, litigation is subject
  to inherent uncertainties and an adverse result in these or other matters may
  arise from time to time that may harm our business. To the best knowledge of
  management, there are no material legal proceedings pending against the Company. </P>
<P align=justify><B>Item 1A. Risk Factors. </B></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </STRONG>None. </P>
<P align=justify><B>Item 2. Unregistered Sales of Equity Securities and Use of
  Proceeds. </B></P>
<P
align=justify><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As more fully described in Part I, Item 2 above, on April 25, 2013, in exchange for the cancellation of existing indebtedness, the Company issued a promissory note in the principal amount of $71,000 to Magna and promissory notes in the aggregate principal amount of $51,500 to Hanover, respectively (collectively, the &ldquo;Exchange Notes&rdquo;).  Each of the Exchange Notes is convertible into common stock of the Company at a fixed conversion price of $0.008 per share.  Additionally, on June 7, 2013, the Company issued to Hanover a convertible note in the principal amount of $5,000, convertible at a fixed conversion price of $0.008 per share (the &ldquo;June 2013 Note&rdquo;).  Subsequent to the quarter ended June 30, 2013, on August 27, 2013, Magna loaned an additional $25,000 to the Company convertible into common stock.  The securities were issued in reliance upon Rule 506 of Regulation D of the Securities Act, and comparable exemptions for sales to &ldquo;accredited&rdquo; investors under state securities laws.</P>
<P
align=justify><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As more fully described in Part I, Item 2 above, on September 5, 2013, in connection with the Credit Facility, ASYM granted an extension of the waiver of covenants for all periods prior to September 10, 2013 in return for a $25,000 waiver fee in the form of an additional tranche loan under the agreement and warrant stock.   The securities were issued in reliance upon Rule 506 of Regulation D of the Securities Act, and comparable exemptions for sales to &ldquo;accredited&rdquo; investors under state securities laws.</P>
<P align=justify><B>Item 3. Defaults Upon Senior Securities. </B></P>
<P style="MARGIN-LEFT: 0%" align=justify><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None. </P>
<P align=center>26</P>
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<P align=justify><B>Item 4. Mine Safety Disclosures </B></P>
<P style="MARGIN-LEFT: 0%" align=justify><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable. </P>
<P align=justify><B>Item 5. Other Information. </B></P>
<P style="MARGIN-LEFT: 0%" align=justify><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company entered into a Term Sheet with Warpaint Kansas, LP (the &ldquo;Seller&rdquo;), dated July 26, 2013, for the acquisition of a 15,000 acre land package located in the Mississippian &ldquo;Osage&rdquo; of central Kansas (the &ldquo;Term Sheet&rdquo;).  Pursuant to the terms of the Term Sheet, the Company is to receive an 80% working interest in the properties and an 81.25% net revenue interest. </P>
<P style="MARGIN-LEFT: 0%" align=justify><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Term Sheet provides that the parties will negotiate and execute definitive agreements setting forth the terms of the transaction between 15 and 45 days after the execution of the Term Sheet.  The Term Sheet provides for a 60 day exclusivity period in favor of the Buyer.</P>
<P style="MARGIN-LEFT: 0%" align=justify><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The total purchase price to be paid by the Company is $5,400,000.  The Company has agreed to create a wholly-owned subsidiary which will act as the operator of the project and will be able to dictate the timeline for the lease development.</P>
<P style="MARGIN-LEFT: 0%" align=justify><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Term Sheet provides that the Company will provide Seller an option to acquire a 20% interest in any leaseholds acquired by the Company subsequent to the closing and Seller will provide the Company with an option to acquire an 80% interest in any leaseholds acquired by Seller subsequent to the closing.</P>
<P style="MARGIN-LEFT: 0%" align=justify><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The foregoing description of the Term Sheet is qualified in its entirety by reference to the Term Sheet, a copy of which is filed as exhibit 10.4 to this Quarterly Report on Form 10-Q.</P>
<P align=justify><B>Item 6. Exhibits. </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 style="BORDER-BOTTOM: #000000 1px solid" align=center><B>Exhibit
      Number </B></TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="88%"
    ><B>Name </B></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="88%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee>3.1(1) </TD>
    <TD align=left width="2%"  bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left width="88%" bgColor=#eeeeee ><P align=justify>Articles of Incorporation, and all amendments thereto </P></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="88%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee>3.2(2) </TD>
    <TD align=left width="2%"  bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left width="88%" bgColor=#eeeeee ><P align=justify>Bylaws </P></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="88%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee>10.1(3) </TD>
    <TD align=left width="2%"  bgColor=#eeeeee></TD>
    <TD align=left width="88%" bgColor=#eeeeee ><P align=justify>Common Stock Purchase Agreement, dated as of June 24,
      2013, by and between Hanover Holdings I, LLC and American Petro-Hunter
      Inc. </P></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="88%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee>10.2(3) </TD>
    <TD align=left width="2%"  bgColor=#eeeeee></TD>
    <TD align=left width="88%" bgColor=#eeeeee ><P align=justify>Registration Rights Agreement, dated as of June 24, 2013,
      by and between Hanover Holdings I, LLC and American Petro- Hunter Inc. </P></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="88%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee>10.3(3) </TD>
    <TD align=left width="2%"  bgColor=#eeeeee></TD>
    <TD align=left width="88%" bgColor=#eeeeee ><P align=justify>Agreement, dated as of June 24, 2013, by and between
      Hanover Holdings I, LLC and American Petro-Hunter Inc. </P></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="88%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee><a href="exhibit10-4.htm">10.4</a></TD>
    <TD align=left  bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left bgColor=#eeeeee ><a href="exhibit10-4.htm">Term Sheet, dated as of July 26, 2013, by and between Warpaint Kansas, LP and American Petro-Hunter Inc.</a></TD>
  </TR>
  <TR vAlign=top>
    <TD align=center>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee><a href="exhibit31-1.htm">31 </a></TD>
    <TD align=left width="2%"  bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left width="88%" bgColor=#eeeeee ><P align=justify><a href="exhibit31-1.htm">Rule 13a-14(a)/15d-14(a) Certification (Principal
      Executive Officer and Principal Financial Officer) </a></P></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="88%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee><a href="exhibit32-1.htm">32 </a></TD>
    <TD align=left width="2%"  bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left width="88%" bgColor=#eeeeee ><P align=justify><a href="exhibit32-1.htm">Section 1350 Certifications </a></P></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="88%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee>101.INS* </TD>
    <TD align=left width="2%"  bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left width="88%" bgColor=#eeeeee ><P align=justify>XBRL Instance Document </P></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="88%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee>101.SCH* </TD>
    <TD align=left width="2%"  bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left width="88%" bgColor=#eeeeee ><P align=justify>XBRL Taxonomy Extension Schema </P></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="88%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee>101.CAL* </TD>
    <TD align=left width="2%"  bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left width="88%" bgColor=#eeeeee ><P align=justify>XBRL Taxonomy Extension Calculation Linkbase </P></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="88%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee>101.DEF* </TD>
    <TD align=left width="2%"  bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left width="88%" bgColor=#eeeeee ><P align=justify>XBRL Taxonomy Extension Definition Linkbase </P></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="88%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee>101.LAB* </TD>
    <TD align=left width="2%"  bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left width="88%" bgColor=#eeeeee ><P align=justify>XBRL Taxonomy Extension Label Linkbase </P></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="88%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee>101.PRE* </TD>
    <TD align=left width="2%"  bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left width="88%" bgColor=#eeeeee ><P align=justify>XBRL Taxonomy Extension Presentation Linkbase </P></TD>
  </TR>
</TABLE>
<P align=justify>Footnotes to Exhibits Index </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>
  <TR>
    <TD vAlign=top width="5%">(1) </TD>
    <TD><P align=justify>Incorporated by reference to the Quarterly Report on Form
      10-Q/A, filed August 30, 2012.</P></TD>
  </TR>
  <TR>
    <TD vAlign=top width="5%">(2) </TD>
    <TD><P align=justify>Incorporated by reference to Form 10-SB12G dated June 19,
      1997.</P></TD>
  </TR>
  <TR>
    <TD vAlign=top width="5%">(3) </TD>
    <TD><P align=justify>Incorporated by reference to Form 8-K dated June 26,
      2013</P></TD>
  </TR>
</TABLE>
<P align=justify>* Pursuant to Rule 406T of Regulation S-T, these interactive
  data files are deemed not filed or part of a registration statement or
  prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933 or
  Section 18 of the Securities Exchange Act of 1934 and otherwise are not subject
  to liability. </P>
<P align=center>27</P>
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<P align=center><B>SIGNATURES </B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities
  Exchange Act of 1934, the registrant caused this report to be signed on its
  behalf by the undersigned thereunto duly authorized. </P>
<P style="MARGIN-LEFT: 50%" align=justify>AMERICAN PETRO-HUNTER INC. </P>
<P style="MARGIN-LEFT: 50%" 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>Date: September 11, 2013 </TD>
    <TD align=left width="5%" >By: </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="45%"
    ><I>/s/ Robert B McIntosh</I> </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="5%" ></TD>
    <TD align=left width="45%" >Robert B, McIntosh, President,
      Chief Executive Officer and Chief Financial Officer </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="5%" ></TD>
    <TD align=left width="45%" >(Principal Executive Officer,
      Principal Financial Officer and Principal Accounting Officer) </TD>
  </TR>
</TABLE>
<P align=center>28</P>
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<DOCUMENT>
<TYPE>EX-10.4
<SEQUENCE>2
<FILENAME>exhibit10-4.htm
<DESCRIPTION>EXHIBIT 10.4
<TEXT>
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   <TITLE>American Petro-Hunter Inc. - Exhibit 10.4 - Filed by newsfilecorp.com</TITLE>
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<P align=right><B>STRICTLY PRIVATE AND CONFIDENTIAL</B></P>
<P align=center><B><U>TERM SHEET<BR></U></B><B>Summary of Terms and
Conditions</B></P>
<P align=center><B>July 26, 2013</B></P>
<P align=justify>The primary purpose of this Term Sheet (<B>&#147;Term Sheet&#148;</B>) is
to set forth the principal terms and conditions of the purchase as described
herein.</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>
      <P align=justify><B>Seller:</B> </P></TD>
    <TD align=left width="80%">
      <P align=justify>Warpaint Kansas, LP (<B>&#147;Seller&#148;</B>). </P></TD></TR>
  <TR>
    <TD></TD>
    <TD width="80%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>
      <P align=justify><B>Buyer:</B> </P></TD>
    <TD align=left width="80%">
      <P align=justify>American Petro-Hunter, Inc. or its assignees or
      affiliates thereof (<B>&#147;Buyer&#148;</B>). </P></TD></TR>
  <TR>
    <TD></TD>
    <TD width="80%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>
      <P align=justify><B>Properties:</B> </P></TD>
    <TD align=left width="80%">
      <P align=justify>The following described assets, properties, rights,
      titles and interests of Seller, located and owned by the Seller in Rice
      and Reno Counties, Kansas, (herein collectively called the
      <B>&#147;Properties&#148;</B>) include: All producing and non-producing oil,
      condensate, natural gas, natural gas liquids, and hydrocarbons and other
      minerals; all oil, gas and mineral leases, and the leasehold estates
      created thereby, working interests, net profits interests, reversionary
      interests, and other leasehold and fee interests (all depths); areas of
      mutual interest, property and rights, including all rights in any pooled,
      communitized or unitized acreage; all well locations, surface equipment,
      downhole equipment, vehicles, and any other equipment and real property;
      permits, licenses, contracts, commodity and any other hedges; and any
      other asset, however, excluding cash, accounts receivable, prepaid
      expenses, and other similar assets. </P></TD></TR>
  <TR>
    <TD></TD>
    <TD width="80%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>
      <P align=justify><B>Mineral Acres:</B> </P></TD>
    <TD align=left width="80%">
      <P align=justify>The Properties shall include the leasehold of an
      undivided eighty (80%) interest in approximately 15,000 net mineral acres
      located in Rice and Reno Counties, Kansas owned by the Seller
      (<B>&#147;Purchased</B> <B>Acres&#148;</B>). </P></TD></TR>
  <TR>
    <TD></TD>
    <TD width="80%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>
      <P align=justify><B>Purchase Price:</B> </P></TD>
    <TD align=left width="80%">
      <P align=justify>At Closing, Buyer will pay Seller, via wire transfer, the
      purchase price in an amount equal to the product of $450 per acre and the
      Purchased Acres less the Down Payment. Based on 12,000 net mineral acres
      (80% of 15,000 mineral acres), the total purchase price is expected to be
      $5.4 million. </P></TD></TR>
  <TR>
    <TD></TD>
    <TD width="80%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>
      <P align=justify><B>Down Payment:</B> </P></TD>
    <TD align=left width="80%">
      <P align=justify>Upon execution of the Definitive Agreements, Buyer will
      pay Seller, via wire transfer, a five hundred forty thousand dollars
      ($540,000) down payment in exchange for the Exclusivity Period. Buyer
      shall forfeit Down Payment if Closing does not occur through no fault of
      Seller. </P></TD></TR>
  <TR>
    <TD></TD>
    <TD width="80%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>
      <P align=justify><B>Net Revenue Interest:</B> </P></TD>
    <TD align=left width="80%">
      <P align=justify>Seller shall deliver to Buyer a 81.25% (8/8<SUP>th
      </SUP>&#146;s basis) net revenue interest on the Properties.
</P></TD></TR></TABLE>
<P align=right><B>Page 1</B></P>
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<P align=right><B>STRICTLY PRIVATE AND CONFIDENTIAL</B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>
      <P align=justify><B>Additional Acreage:</B> </P></TD>
    <TD align=left width="80%" >
      <P align=justify>Buyer shall provide Seller the option to acquire a
      proportionally reduced twenty percent (20%) interest in any and all
      leasehold mineral acres acquired by Buyer subsequent to the Closing. At
      the same time, Seller shall provide Buyer the option to acquire a
      proportionally reduced eighty (80%) percent interest in any and all
      leasehold mineral acres acquired by Seller subsequent to the Closing.
    </P></TD></TR>
  <TR>
    <TD>
      <P align=justify> </P></TD>
    <TD width="80%" >
      <P align=justify>&nbsp;</P></TD></TR>
  <TR vAlign=top>
    <TD align=left>
      <P align=justify><B>Area of Mutual</B> <B>Interest:</B> </P></TD>
    <TD align=left width="80%" >
      <P align=justify>The Definitive Agreements will include an area of mutual
      interest located in Rice and Reno County, Kansas. </P></TD></TR>
  <TR>
    <TD>
      <P align=justify> </P></TD>
    <TD width="80%" >
      <P align=justify>&nbsp;</P></TD></TR>
  <TR vAlign=top>
    <TD align=left>
      <P align=justify><B>Operator:</B> </P></TD>
    <TD align=left width="80%" >
      <P align=justify>Buyer shall form a wholly-owned subsidiary, which shall
      act as operator of record for the Properties (<B>&#147;Newco&#148;</B>). </P></TD></TR>
  <TR>
    <TD>
      <P align=justify> </P></TD>
    <TD width="80%" >
      <P align=justify>&nbsp;</P></TD></TR>
  <TR vAlign=top>
    <TD align=left>
      <P align=justify><B>Participation Rights:</B> </P></TD>
    <TD align=left width="80%" >
      <P align=justify>Seller will have the right to participate as a twenty
      percent (20%) non-operating working interest partner (8/8ths basis) in all
      wells located on the Properties on a &#147;heads up&#148; basis with Buyer
      (<B>&#147;Participation Rights&#148;</B>). The Participation Rights shall also
      include any other wells drilled by Buyer in Rice and Reno Counties, Kansas
      in which Seller owns an undivided interest as described herein. </P></TD></TR>
  <TR>
    <TD>
      <P align=justify> </P></TD>
    <TD width="80%" >
      <P align=justify>&nbsp;</P></TD></TR>
  <TR vAlign=top>
    <TD align=left>
      <P align=justify><B>JOA:</B> </P></TD>
    <TD align=left width="80%" >
      <P align=justify>All operations upon the Properties shall be governed by a
      joint operating agreement (each, a <B>&#147;JOA&#148;</B>), agreeable to the Buyer
      and Seller and executed with the Definitive Agreements. The Definitive
      Agreements will also provide for pooling and well proposals. </P></TD></TR>
  <TR>
    <TD>
      <P align=justify> </P></TD>
    <TD width="80%" >
      <P align=justify>&nbsp;</P></TD></TR>
  <TR vAlign=top>
    <TD align=left>
      <P align=justify><B>Closing Date:</B> </P></TD>
    <TD align=right width="80%" >
      <P align=justify>The transaction outlined in this Term Sheet shall close
      no later than forty-five (45) Business Days nor less than fifteen (15)
      Business Days immediately following the formal execution of this Term
      Sheet (the <B>&#147;Closing&#148;</B>). A &#147;Business Day&#148; shall be defined as a day
      other than a Saturday, a Sunday or a day on which banks located in New
      York, New York are required or permitted by law to remain closed.
  </P></TD></TR>
  <TR>
    <TD>
      <P align=justify> </P></TD>
    <TD width="80%" >
      <P align=justify>&nbsp;</P></TD></TR>
  <TR vAlign=top>
    <TD align=left>
      <P align=justify><B>Effective Date:</B> </P></TD>
    <TD align=left width="80%" >
      <P align=justify>The effective date shall be the same date and time as
      Closing. </P></TD></TR>
  <TR>
    <TD>
      <P align=justify> </P></TD>
    <TD width="80%" >
      <P align=justify>&nbsp;</P></TD></TR>
  <TR vAlign=top>
    <TD align=left>
      <P align=justify><B>Exclusivity:</B> </P></TD>
    <TD align=left width="80%" >
      <P align=justify>The Seller agrees to work in good faith expeditiously
      towards completing the transactions contemplated herein. Subject to the
      Deadline for Definitive Agreements, the Seller further agrees that it will
      not, for a period of sixty ( 60) Business Days from the date of this Term
      Sheet is accepted by Seller (<B>&#147;Exclusivity Period&#148;</B>), take any action
      to solicit, initiate, encourage or assist the submission of any proposal,
      negotiation or offer from any person or entity other than Buyer relating
      to any transaction involving the Properties and shall notify Buyer
      promptly of any inquiries by any third parties in regards to the foregoing. This Term Sheet,
however, may be terminated by mutual written agreement of the Buyer and Seller
or by either Buyer or Seller upon expiration of the Exclusivity Period.</P></TD></TR></TABLE>
<P align=right><B>Page 2</B></P>
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<P align=right><B>STRICTLY PRIVATE AND CONFIDENTIAL</B></P>
<DIV>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B>Documentation:</B> </TD>
    <TD align=left width="80%" >The transaction shall be in
      accordance with appropriate documents necessary to effect the transactions
      contemplated herein, including, but not limited to, the a Purchase and
      Sale Agreement, JOA, and Assignments (collectively, the <B>&#147;Definitive
      Agreements&#148;</B>), all acceptable in form and substance to the parties and
      their respective counsel. The Definitive Agreements shall contain
      representations, warranties, and indemnification provisions that are usual
      and customary for transactions of this type. Buyer&#146;s counsel will prepare
      the initial draft of the Purchase and Sale Agreement. Seller&#146;s counsel
      will prepare the initial draft of the JOA and Assignments. </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="80%" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Deadline for Definitive</B> <B>Agreements:</B> </TD>
    <TD align=left width="80%" ><B>NOTWITHSTANDING ANYTHING
      CONTAINED HEREIN</B> <B>TO THE CONTRARY, THE DEFINITIVE AGREEMENTS</B>
      <B>WILL BE EXECUTED AND THE DOWN PAYMENT WILL</B> <B>BE MADE NO LATER
      WEDNESDAY, AUGUST 14, 2013 AT</B> <B>2:00</B> <B>PM CST</B>
      <B>(&#147;DEADLINE</B> <B>FOR</B> <B>DEFINITIVE</B> <B>AGREEMENTS&#148;).</B> <B>IF
      EITHER THE DEFINITIVE</B> <B>AGREEMENTS ARE NOT EXECUTED, OR THE DOWN</B>
      <B>PAYMENT IS NOT MADE, BY WEDNESDAY, AUGUST 14,</B> <B>2013 AT 2:00</B>
      <B>PM CST, THE SELLER CAN</B> <B>UNILATERALLY TERMINATE THE TERM
      SHEET,</B> <B>INCLUDING THE EXCLUSIVITY PERIOD, WITHOUT</B> <B>PENALTY OR
      LIABILITY.</B> </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="80%" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Due Diligence:</B> </TD>
    <TD align=left width="80%" >Execution and delivery of the
      Definitive Agreements, will be subject to appropriate due diligence by
      Buyer that shall include, but not be limited to, title, environmental,
      operational, engineering, regulatory, taxes and legal reviews with respect
      to the Properties (<B>&#147;Due Diligence&#148;</B>). Seller will provide Buyer
      access to all technical, financial and any other information relating to
      Properties at Buyer&#146;s request. Additionally, Seller shall provide Buyer
      all information discovered by Seller regarding the Properties during Due
      Diligence. Buyer agrees that all information provided by Seller shall be
      held in confidence, and shall not be disclosed by Buyer other than to
      those of its employees and agents retained to conduct due diligence, shall
      not be used by Buyer or its employees or agents for any other purpose, and
      shall be returned to Seller, without retention of copies by Buyer,
      immediately upon termination of this Term Sheet or the Definitive
      Agreements. </TD></TR></TABLE></DIV>
<P align=right><B>Page 3</B></P>
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<P align=right><B>STRICTLY PRIVATE AND CONFIDENTIAL</B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B>Marketable Title:</B> </TD>
    <TD align=left width="80%" >Seller will provide title to the
      leasehold estate of the Properties which is (i) free of any significant
      title defects, demands, lawsuits, claims, mortgages, liens or
      encumbrances, created by through or under the Seller, and (ii) grants to
      the oil and gas lessee all of the rights considered usual and necessary to
      explore for and produce oil and gas. </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="80%" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Closing Conditions:</B> </TD>
    <TD align=left width="80%" >Unless waived by Buyer, closing
      and funding of this Agreement and performance of any obligations set forth
      hereunder, will be subject and conditioned upon the following: (i)
      Seller&#146;s providing Marketable Title to the Properties; (ii) receipt by the
      Buyer of full and complete releases from Seller&#146;s creditors, if any; (iii)
      the Properties have a minimum 81.25% net revenue interest (8/8<SUP>th
      </SUP>&#146;s); and (iv) Buyer&#146;s receipt of financing to effect the
      transactions contemplated herein. </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="80%" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Confidentiality:</B> </TD>
    <TD align=left width="80%" >This Term Sheet is being made
      available to the Seller and Newco on a confidential basis. Neither this
      Term Sheet nor its contents are to be divulged to other parties other than
      as required by law without the express written consent of Seller. </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="80%" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Law Governance:</B> </TD>
    <TD align=left width="80%" >This Term Sheet and the
      Definitive Agreements shall be governed by the laws of the State of
      Kansas, without regard to conflicts of laws principles. </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="80%" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Jurisdiction:</B> </TD>
    <TD align=left width="80%" >State of Kansas </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="80%" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Notices:</B> </TD>
    <TD align=left width="80%" >All notices hereunder shall be
      deemed to be delivered, if in writing, upon the earlier of actual receipt
      by the party to be notified or three (3) days after deposit in the U.S.
      mail, postage prepaid, return receipt requested, certified or overnight
      courier addressed as follows: </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="20%"  >&nbsp;</TD>
    <TD align=left><B>If to Buyer:</B> </TD>
    <TD align=left width="50%">ASYM Energy Partners LLC </TD></TR>
  <TR vAlign=top>
    <TD width="20%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="50%">1055 Washington Blvd, Suite 410 </TD></TR>
  <TR vAlign=top>
    <TD width="20%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="50%">Stamford, CT 06901 </TD></TR>
  <TR>
    <TD width="20%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD width="50%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD width="20%" >&nbsp;</TD>
    <TD align=left><B>If to Seller:</B> </TD>
    <TD align=left width="50%">Warpaint Resources LLC </TD></TR>
  <TR vAlign=top>
    <TD width="20%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="50%">1925 Cedar Springs Road, Suite 103 </TD></TR>
  <TR vAlign=top>
    <TD width="20%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="50%">Dallas, Texas 75201-1783 </TD></TR></TABLE>
<P align=center><B>[SIGNATURE PAGE FOLLOWS]</B></P>
<P align=right><B>Page 4</B></P>
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<P align=right><B>STRICTLY PRIVATE AND CONFIDENTIAL</B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the
undersigned have caused this Term Sheet to be executed by their duly authorized
representatives as of the date first above written.</P>
<P align=justify><B>WARPAINT KANSAS, LP</B><BR><BR>By: Oklaunion Management, LP,
its General Partner<BR>By: Warpaint Resources, LLC, its General
Partner<BR><BR>By: <U>/s/ Robert O. Dow</U><BR>Title: <U>Vice
President</U><BR>Name: <U>Robert O. Dow</U><BR><B></B></P>
<P align=justify><B>AMERICAN PETRO-HUNTER, INC.</B><BR><BR>By: <U>/s/ Robert B.
McIntosh</U><BR>Title: <U>President and C.E.O</U><BR>Name: <U>Robert B.
McIntosh</U><BR></P>
<P align=right><B>Page 5</B></P>
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<DOCUMENT>
<TYPE>EX-31.1
<SEQUENCE>3
<FILENAME>exhibit31-1.htm
<DESCRIPTION>EXHIBIT 31.1
<TEXT>
<HTML>
<HEAD>
   <TITLE>American Petro-Hunter Inc. - Exhibit 31.1 - Filed by newsfilecorp.com</TITLE>
</HEAD>
<BODY style="font-size:10pt;">
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<P align=right><B>EXHIBIT 31 </B></P>
<P align=center><B>CERTIFICATION PURSUANT TO <BR>18 USC, SECTION 1350, <BR>AS
ADOPTED PURSUANT TO <BR></B><B>SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
</B></P>
<P align=justify>I, Robert B. McIntosh, certify that: </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; I have reviewed
this report on Form 10-Q of American Petro-Hunter Inc.; </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Based on my
knowledge, this report does not contain any untrue statement of a material fact
or omit to state a material fact necessary to make the statements made, in light
of the circumstances under which such statements were made, not misleading with
respect to the period covered by this report; </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Based on my
knowledge, the financial statements, and other financial information included in
this report, fairly present in all material respects the financial condition,
results of operations and cash flows of the registrant as of, and for, the
periods presented in this report; </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The registrant&#146;s
other certifying officer(s) and I are responsible for establishing and
maintaining disclosure controls and procedures (as defined in Exchange Act Rules
13a-15(e) and 15d-15(e)) and internal control over financial reporting (as
defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and
have: </P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Designed such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure that
material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly
during the period in which this report is being prepared; </P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Designed such
internal control over financial reporting, or caused such internal control over
financial reporting to be designed under our supervision, to provide reasonable
assurance regarding the reliability of financial reporting and the preparation
of financial statements for external purposes in accordance with generally
accepted accounting principles; </P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Evaluated the effectiveness of the registrant&#146;s disclosure controls and
procedures and presented in this report our conclusions about the effectiveness
of the disclosure controls and procedures, as of the end of the period covered
by this report based on such evaluation; and </P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Disclosed in this report any change in the registrant&#146;s internal control over
financial reporting that occurred during the registrant&#146;s most recent fiscal
quarter (the registrant&#146;s fourth fiscal quarter in the case of an annual report)
that has materially affected, or is reasonably likely to materially affect, the
registrant&#146;s internal control over financial reporting; and </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The registrant&#146;s
other certifying officer(s) and I have disclosed, based on our most recent
evaluation of internal control over financial reporting, to the registrant&#146;s
auditors and the audit committee of the registrant&#146;s board of directors (or
persons performing the equivalent functions): </P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
All significant deficiencies and material weaknesses in the design or operation
of internal control over financial reporting which are reasonably likely to
adversely affect the registrant&#146;s ability to record, process, summarize and
report financial information; and </P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Any fraud, whether or not material, that involves management or other employees
who have a significant role in the registrant&#146;s internal control over financial
reporting. </P>
<P align=justify>Date: September 11, 2013 </P>
<TABLE
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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="50%"><I>/s/
      Robert B. McIntosh</I> </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="50%">&nbsp; &nbsp;Robert B. McIntosh </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="50%">&nbsp; &nbsp;President, Chief Executive
      Officer, Chief Financial Officer </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="50%">&nbsp; &nbsp;(Principal Executive Officer,
      Principal Financial Officer </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="50%">&nbsp; &nbsp;and Principal Accounting Officer)
    </TD></TR></TABLE><BR>
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<DOCUMENT>
<TYPE>EX-32.1
<SEQUENCE>4
<FILENAME>exhibit32-1.htm
<DESCRIPTION>EXHIBIT 32.1
<TEXT>
<HTML>
<HEAD>
   <TITLE>American Petro-Hunter Inc. - Exhibit 32.1 - Filed by newsfilecorp.com</TITLE>
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<BODY style="font-size:10pt;">
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<P align=right><B>EXHIBIT 32 </B></P>
<P align=center><B>CERTIFICATION PURSUANT TO </B><BR><B>18 U.S.C. SECTION 1350,
</B><BR><B>AS ADOPTED PURSUANT TO </B><BR><B>SECTION 906 OF THE SARBANES-OXLEY
ACT OF 2002 </B><BR></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with the quarterly report of
American Petro-Hunter Inc. (the &#147;Company&#148;) on Form 10-Q for the period ended
June 30, 2013, as filed with the Securities and Exchange Commission (the
&#147;Report&#148;), each of the undersigned officers, certifies, pursuant to 18 U.S.C. &#167;
1350, as adopted pursuant to &#167; 906 of the Sarbanes-Oxley Act of 2002, that, to
the best of my knowledge: </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;the
Report fully complies with the requirements of section 13(a) or 15(d) of the
Securities Exchange Act of 1934; and </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;the
information contained in the Report fairly presents, in all material respects,
the financial condition and results of operations of the Company. </P>
<P align=justify>Date: September 11, 2013 </P>
<TABLE
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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="50%"><I>/s/
      Robert B. McIntosh</I> </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="50%">Robert B. McIntosh </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="50%">President, Chief Executive Officer and Chief
      Financial Officer </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="50%">(Principal Executive Officer, Principal
      Financial Officer and Principal Accounting Officer)
</TD></TR></TABLE><BR>
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