<SUBMISSION>
<ACCESSION-NUMBER>0001062993-14-002494
<TYPE>424B3
<PUBLIC-DOCUMENT-COUNT>5
<FILING-DATE>20140501
<DATE-OF-FILING-DATE-CHANGE>20140501
<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>14801878
</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>


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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<B> </B></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, as amended and
supplemented. This Prospectus Supplement includes our attached Annual Report on
Form 10-K for the fiscal year ended December 31, 2013, as filed with the
Securities and Exchange Commission on April 30, 2014. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Prospectus, any prospectus
supplements filed before the date hereof, 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;) and 1,764,706 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 and any prospectus supplements filed
before the date hereof. Any statement contained in the Prospectus and any
prospectus supplements filed before the date hereof 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 April
29, 2014, the closing bid price of our common stock was $0.005 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 April 30, 2014. </P>
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<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-K </FONT></B></P>
<P align=center>[X] ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
  EXCHANGE ACT OF 1934 </P>
<P align=center>For the fiscal year ended<B> </B><B><U>December 31,
  2013</U></B></P>
<P align=center>[&nbsp;&nbsp; ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF
  THE SECURITIES EXCHANGE ACT OF 1934 </P>
<P align=center>Commission File Number<B> </B><B><U>000-22723</U></B></P>
<P align=center><B><U><FONT size=5>AMERICAN PETRO-HUNTER
  INC.</FONT></U></B><BR>
  (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=center><B><U>Nevada </U></B></TD>
    <TD align=center width="50%"><B><U>90-0552874 </U></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=center>(State or Other Jurisdiction of </TD>
    <TD align=center width="50%">(I.R.S. Employer </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center>Incorporation or Organization) </TD>
    <TD align=center width="50%">Identification Number) </TD>
  </TR>
  <TR>
    <TD align=center>&nbsp;</TD>
    <TD align=center width="50%">&nbsp;</TD>
  </TR>
  <TR>
    <TD align=center>&nbsp;</TD>
    <TD align=center width="50%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=center><B>250 N. Rock Rd., Suite 365 </B></TD>
    <TD align=center width="50%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=center><B><U>Wichita KS </U></B></TD>
    <TD align=center width="50%"><B><U>67206 </U></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=center>(Address of Principal Executive Offices) </TD>
    <TD align=center width="50%">(Zip Code) </TD>
  </TR>
</TABLE>
<P align=center><B><U>(316) 201-1853 </U></B><BR>
  (Registrant&#146;s telephone
  number) <BR>
</P>
<P align=center>Securities registered pursuant to Section 12(b) of the Act:</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=center><B><U>None </U></B></TD>
    <TD align=center width="50%"><B><U>None </U></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=center>(Title of each class) </TD>
    <TD align=center width="50%">(Name of each exchange on which registered) </TD>
  </TR>
</TABLE>
<P align=center>Securities registered pursuant to Section 12(g) of the Act: <BR>
    <B><U>Common Stock, $0.001 par value</U></B><B> </B><BR>
  (Title of class) <BR>
</P>
<P align=justify>Indicate by check mark if the registrant is a well-known
  seasoned issuer, as defined in Rule 405 of the Securities Act. <BR>
  <B>YES
    [&nbsp;&nbsp; ]&nbsp;&nbsp;&nbsp;&nbsp; NO [X]</B></P>
<P align=justify>Indicate by check mark if the registrant is not required to
  file reports pursuant to Section 13 or Section 15(d) of the Act. <BR>
  <B>YES
    [&nbsp;&nbsp; ]&nbsp;&nbsp;&nbsp;&nbsp; NO [X]</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>
  <B>YES
    [X]&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;NO&nbsp;
    [&nbsp;&nbsp;&nbsp;]&nbsp;</B><B></B></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>
  <B>YES [X]&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;NO [&nbsp;&nbsp; ]</B><B></B></P>
<P align=justify>Indicate by check mark if disclosure of delinquent filers
  pursuant to Item 405 of Regulation S-K is not contained herein, and will not be
  contained, to the best of registrant&#146;s knowledge, in definitive proxy or
  information statements incorporated by reference in Part III of this Form 10-K
  or any amendment to this Form 10-K. <b>[&nbsp;&nbsp;]</b></P>
<P align=justify>Indicate by check mark whether the registrant is a large
  accelerated filer, an accelerated filer, or a non-accelerated filer, or a small
  reporting company. See definition of &#147;large accelerated filer&#148;, &#147;accelerated
  filer&#148; and &#147;smaller reporting company&#148; in Rule 12b-2 of the Exchange Act. (Check
  one): </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="55%" align=left>Large accelerated filer [&nbsp;&nbsp; ]</TD>
    <TD align=left width="45%" >Accelerated
      filer&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[&nbsp;&nbsp;
      ]</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Non-accelerated filer&nbsp;&nbsp; [&nbsp; &nbsp;] (do not
      check if smaller reporting company) </TD>
    <TD align=left width="45%" >Smaller reporting company [X] </TD>
  </TR>
</TABLE>
<BR>
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<P align=justify>Indicate by check mark whether the registrant is a shell
  company (as defined in Rule 12b-2 of the Act). <BR>
  <B>YES [&nbsp;&nbsp;
    ]&nbsp;&nbsp;&nbsp;&nbsp; NO [X]</B></P>
<P align=justify>The aggregate market value of the voting stock held by
  non-affiliates of the Registrant as of June 28, 2013 was $601,463.99 (computed
  by reference to the last sale price of a share of the registrant&#146;s common stock
  on that date as reported by the Over the Counter Bulletin Board). For purposes
  of this computation, it has been assumed that the shares beneficially held by
  directors and officers of registrant were &#147;held by affiliates&#148;; this assumption
  is not to be deemed to be an admission by such persons that they are affiliates
  of registrant. </P>
<P align=justify>As of April 25, 2014, there were outstanding 121,740,587 shares
  of registrant&#146;s common stock, par value $0.001 per share. </P>
<P align=center><B>DOCUMENTS INCORPORATED BY REFERENCE </B></P>
<P align=justify>Exhibits incorporated by reference are referred under Part IV.</P>
<P align=center>2</P>
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<P align=center><B>TABLE OF CONTENTS </B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=center width="5%"><B>Page</B> </TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><B>PART I</B> </TD>
    <TD align=center width="5%" bgColor=#eeeeee>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>ITEM 1 &#151; BUSINESS </TD>
    <TD align=center width="5%">4</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>ITEM 1A &#151; RISK FACTORS </TD>
    <TD align=center width="5%" bgColor=#eeeeee>5</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>ITEM 1B &#151; UNRESOLVED STAFF COMMENTS </TD>
    <TD align=center width="5%">12</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>ITEM 2 &#151; PROPERTIES </TD>
    <TD align=center width="5%" bgColor=#eeeeee>12</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>ITEM 3 &#151; LEGAL PROCEEDINGS </TD>
    <TD align=center width="5%">13</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>ITEM 4 &#151; MINE SAFETY DISCLOSURES </TD>
    <TD align=center width="5%" bgColor=#eeeeee>13</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><B>PART II</B> </TD>
    <TD align=center width="5%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>ITEM 5 &#151; MARKET FOR REGISTRANT&#146;S COMMON
      EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY
      SECURITIES </TD>
    <TD align=center width="5%" bgColor=#eeeeee>13</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>ITEM 6 &#151; SELECTED FINANCIAL DATA </TD>
    <TD align=center width="5%">14</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>ITEM 7 &#151; MANAGEMENT&#146;S DISCUSSION AND
      ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS </TD>
    <TD align=center width="5%" bgColor=#eeeeee>14</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>ITEM 7A &#151; QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT
      MARKET RISK </TD>
    <TD align=center width="5%">17</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>ITEM 8 &#151; FINANCIAL STATEMENTS AND
      SUPPLEMENTARY DATA </TD>
    <TD align=center width="5%" bgColor=#eeeeee>17</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>ITEM 9 &#151; CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
      ACCOUNTING AND FINANCIAL DISCLOSURE </TD>
    <TD align=center width="5%">17</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>ITEM 9A &#151; CONTROLS AND PROCEDURES </TD>
    <TD align=center width="5%" bgColor=#eeeeee>17</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>ITEM 9B &#151; OTHER INFORMATION </TD>
    <TD align=center width="5%">18</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><B>PART III</B> </TD>
    <TD align=center width="5%" bgColor=#eeeeee>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>ITEM 10 &#151; DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE
      GOVERNANCE </TD>
    <TD align=center width="5%">18</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>ITEM 11 &#151; EXECUTIVE COMPENSATION </TD>
    <TD align=center width="5%" bgColor=#eeeeee>19</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>ITEM 12 &#151; SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
      AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS </TD>
    <TD align=center width="5%">20</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>ITEM 13 &#151; CERTAIN RELATIONSHIPS AND RELATED
      TRANSACTIONS, AND DIRECTOR INDEPENDENCE </TD>
    <TD align=center width="5%" bgColor=#eeeeee>20</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>ITEM 14 &#151; PRINCIPAL ACCOUNTING FEES AND
      SERVICES </TD>
    <TD align=center width="5%">21</TD>
  </TR>
  <TR vAlign=top bgcolor="#EEEEEE">
    <TD align=left><B>PART IV</B> </TD>
    <TD width="5%" align=center>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>ITEM 15 &#151; EXHIBITS, FINANCIAL STATEMENT
      SCHEDULES </TD>
    <TD align=center width="5%">21</TD>
  </TR>
  <TR vAlign=top bgcolor="#EEEEEE">
    <TD align=left>SIGNATURES </TD>
    <TD width="5%" align=center>24</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>INDEX TO FINANCIAL STATEMENTS </TD>
    <TD align=center width="5%">24</TD>
  </TR>
  <TR vAlign=top bgcolor="#EEEEEE">
    <TD align=left>INDEX TO EXHIBITS </TD>
    <TD width="5%" align=center>25 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>EXHIBIT 21 </TD>
    <TD align=center width="5%">&nbsp;</TD>
  </TR>
  <TR vAlign=top bgcolor="#EEEEEE">
    <TD align=left>EXHIBIT 31 </TD>
    <TD width="5%" align=center>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>EXHIBIT 31 </TD>
    <TD align=center width="5%">&nbsp;</TD>
  </TR>
  <TR vAlign=top bgcolor="#EEEEEE">
    <TD align=left>EXHIBIT 32 </TD>
    <TD width="5%" align=center>&nbsp;</TD>
  </TR>
</TABLE>
<p align="center">3</p>
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<P align=center><B>PART I </B></P>
<P align=justify><B>ITEM 1</B> <B>&#151; BUSINESS</B></P>
<P align=justify><B>Background </B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have operated as an oil and natural gas
  exploration and production (E&amp;P). On March 5, 2014, we issued a press
  release discussing our plans to expand our business to include the acquisition
  and operation of workforce accommodation facilities servicing the energy
  industry, in addition to our continued exploration, development and production
  of crude oil and natural gas properties. On March 10, 2014, we sold all of our
  rights in and to certain properties located in Payne and Lincoln Counties in
  Oklahoma, which included all of our producing wells. </P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 also agreed to be responsible for 25% of all expenditures in
  connection with the development and operation of the Prospect for drilling.</P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
  June 1, 2010, we announced that the No. 1 well had been put into production. The
  well produced 1,060 barrels in 2013 at an average of 2.9 barrels per day. </P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 748 barrels in
  2013 at a rate of 2 barrels per day.</P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 was named &#147;North Oklahoma Mississippi Lime
  Project&#148;. On June 29, 2011, we announced that the first horizontal well on the
  property, NOM1H, had begun commercial production. The well produced 2,933
  barrels in 2013 at a rate of 8 barrels per day and gas production of 14,016 Mcf
  at a rate of 38 Mcf/day. Also on this property, the NOM3H well began commercial
  oil and gas production on March 7, 2012. The well produced 2,863 barrels in 2013
  at a rate of 7.8 barrels per day and gas production of 21,168 Mcf at a rate of
  58 Mcf/day. </P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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. On April 2, 2012, we announced the spud of the
  first well on the South Oklahoma Project, designated SOM-1H. SOM-1H produced
  4,401 barrels in 2013 at a rate of 12.05 barrels per day and gas production of
  13,213 Mcf at a rate of 36 Mcf/day. </P>
<P align=justify><U>Customers</U></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
  2013, our crude oil production was sold to Sunoco in Oklahoma. We received
  Oklahoma spot prices for our oil and sold our oil in minimum allotments of 160
  barrels. </P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
  also had commercial sales of natural gas at our Oklahoma Project through our
  connection to nearby pipeline infrastructure. We sold natural gas through such
  pipeline to DCP Midstream, LP of Tulsa, Oklahoma and received a premium to the
  NYMEX spot natural gas prices due to the higher BTU content of the gas produced. </P>
<P align=justify><B>Competition</B> </P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Competition
  in the oil and gas industry has been intense. Producing properties and
  undeveloped acreage are in high demand and we compete for such properties, and
  the equipment and labor required to develop and operate them, against
  independent oil and gas companies, drilling and production purchase programs and
  individual producers and operators. Many industry competitors have exploration
  and development budgets substantially greater than ours, potentially reducing
  our ability to compete for desirable properties. </P>
<P
align=center>4</P>
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<P align=justify><B>Our Strategy </B></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
  focus is currently in locating and assessing potential acquisition targets,
  including real property, oil and gas rights and oil and gas companies. The
  Company is currently in negotiations to acquire an accommodation facility that
  services utility and oil service companies operating in the Eagleford region of
  Texas. The property is fully utilized and generates approximately $700,000 to
  $800,000 in pretax annual cash flow. We see the acquisition of &#147;man-camps&#148;
  accommodation facilities as an expanding, in demand, asset especially in the
  very active exploration and development sections of the country, often in
  remote, undeveloped areas with little or no services.</P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
  focus primarily on oil and gas properties within the U.S. and Canada including
  exploration, secondary recovery and development projects. Each project is
  evaluated by our management based on sound geology, acceptable risk levels and
  total capital requirements to develop. Our officers and directors travel to
  different locations throughout North America to evaluate potential acquisitions.
  Further, our management will, if capital allows, participate in a variety of
  different conferences throughout 2013 to increase our exposure to potential
  opportunities. </P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
  ability to execute our strategy as outlined above is dependent on several
  factors including but not limited to: (i) identifying potential acquisitions of
  either assets or operational companies with prices, terms and conditions
  acceptable to us; (ii) additional financing for capital expenditures,
  acquisitions and working capital either in the form of equity or debt with terms
  and conditions that would be acceptable to us; (iii) our success in developing
  revenue, profitability and cash flow; (iv) the development of successful
  strategic alliances or partnerships; and (v) the extent and associated efforts
  and costs of federal, state and local regulations in each of the industries in
  which we currently or plan to operate in. There are no assurances that we will
  be successful in implementing our strategy as any negative result of one of the
  factors alone or in combination could have a material adverse effect on our
  business. </P>
<P align=justify><B>Employees </B></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
  of December 31, 2013, we had no employees. Our President, Robert McIntosh,
  devotes a significant portion of his time to operating and growing our Company,
  with part-time assistance from the Company&#146;s other director. We currently
  utilize temporary contract labor throughout the year to address business and
  administrative needs. </P>
<P align=justify><B>Environmental Regulation </B></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oil
  and gas operations are subject to country-specific federal, state, and local
  laws relating to the protection of the environment, including laws regulating
  removal of natural resources from the ground and the discharge of materials into
  the environment. Various permits from governmental bodies are required for
  drilling operations to be conducted. Numerous governmental departments issue
  rules and regulations to implement and enforce such laws that are often complex
  and costly to comply with and that carry substantial administrative, civil and
  possibly criminal penalties for failure to comply. Under these laws and
  regulations, we may be liable for remediation or removal costs, damages and
  other costs associated with releases of hazardous materials (including oil) into
  the environment, and such liability may be imposed on us even if the acts that
  resulted in the releases were in compliance with all applicable laws at the time
  such acts were performed.</P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  Comprehensive Environmental Response, Compensation, and Liability Act (&#147;CERCLA&#148;)
  contains provisions requiring the remediation of releases of hazardous
  substances into the environment and imposes liability, without regard to fault
  or the legality of the original conduct, on certain classes of persons including
  owners and operators of contaminated sites where the release occurred and those
  companies who transport, dispose of, or arrange for disposal of hazardous
  substances released at the sites. Under CERCLA, such persons may be subject to
  joint and several liability for the costs of cleaning up the hazardous
  substances that have been released into the environment, for damages to natural
  resources and for the costs of certain health studies. Third parties may also
  file claims for personal injury and property damage allegedly caused by the
  release of hazardous substances. Although we handle hazardous substances in the
  ordinary course of business, we are not aware of any hazardous substance
  contamination for which we may be liable. </P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management
  believes that we are in compliance in all material respects with the applicable
  environmental laws and regulations to which we are subject. We do not anticipate
  that compliance with existing environmental laws and regulations will have a
  material effect upon our capital expenditures, earnings or competitive position.
  To date, we have not been required to spend any material amount on compliance
  with environmental regulations. However, changes in environmental laws and
  regulations, or claims for damages to persons, property, natural resources or
  the environment, could result in substantial costs and liabilities, and thus
  there can be no assurance that we will not incur significant environmental
  compliance costs in the future. </P>
<P align=justify><B>ITEM 1A</B> <B>&#151; RISK FACTORS</B></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>With
  the exception of historical facts stated herein, the matters</I> <I>discussed in
    this report on Form 10-K are &#147;forward looking&#148; statements that involve risks and
    uncertainties that could cause actual results to differ materially from
    projected results. Such &#147;forward looking&#148; statements include, but are not
    necessarily limited to statements regarding anticipated levels of future
    revenues and earnings from the operations of American Petro-Hunter Inc. and its
    subsidiaries, (the &#147;Company,&#148; &#147;we,&#148; &#147;us&#148; or &#147;our&#148;), projected costs and expenses
    related to our operations, liquidity, capital resources, and availability of
    future equity capital on commercially reasonable terms. Factors that could cause
    actual results to differ materially are discussed below. We disclaim any </I><i>intent or obligation to publicly update these &#147;forward
      looking&#148; statements, whether as a result of new information, future events or
      otherwise. </i></P>
<P
align=center>5</P>
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<P align=center><B>Risks Relating to Our Business </B></P>
<P align=justify><B>We have a history of losses which may continue, which may
  negatively impact our ability to achieve our business objectives. </B></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although
  we have generated revenues in the past, we have never achieved profitability and
  we recently sold all of our revenue producing properties in connection with our
  change of business focus. We have an accumulated deficit of $16,444,841 for the
  period from January 24, 1996 (inception) to December 31, 2013. We cannot be
  assured that we can achieve or sustain profitability on a quarterly or annual
  basis in the future. Our operations are subject to the risks and competition
  inherent in the establishment of a business enterprise. There can be no
  assurance that future operations will be profitable. We may not achieve our
  business objectives and the failure to achieve such goals would have an adverse
  impact on us. </P>
<P align=justify><B>If we are unable to obtain additional funding our business
  operations will be harmed and if we do obtain additional financing our then
  existing shareholders may suffer substantial dilution. </B></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
  will require additional funds to carry out our business plan. Historically, we
  have financed our expenditures primarily with proceeds from the sale of debt and
  equity securities, bridge loans from our officers and stockholders and proceeds
  from our producing wells. We do not expect to receive any proceeds from our
  operations in the near term, so we will have to raise additional funds through
  debt or equity financings. Obtaining additional financing will be subject to
  market conditions, industry trends, investor sentiment and investor acceptance
  of our business plan and management. These factors may make the timing, amount,
  terms and conditions of additional financing unattractive or unavailable to us.
  If we are not successful in achieving financing in the amount necessary to
  further our operations, implementation of our business plan may fail or be
  delayed and any such failure or delay may have a material adverse effect on our
  company, stock price and business. </P>
<P align=justify><B>Our independent auditors have expressed substantial doubt
  about our ability to continue as a going concern, which may hinder our ability
  to obtain future financing</B><B><I>. </I></B></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
  their report dated April 30, 2014, our independent auditors stated that our
  financial statements for the fiscal year ended December 31, 2013 were prepared
  assuming that we would continue as a going concern. Our ability to continue as a
  going concern is an issue raised as a result of recurring losses from
  operations. We continue to experience net operating losses. Our ability to
  continue as a going concern is subject to our ability to obtain necessary
  funding from outside sources, including obtaining additional funding from the
  sale of our securities. Our continued net operating losses increase the
  difficulty in meeting such goals and there can be no assurances that such
  methods will prove successful. </P>
<P align=justify><B>We have a limited operating history and are changing our
  business focus; if we are not successful in establishing or growing our
  business, then we may have to scale back or even cease our ongoing business
  operations</B><B><I>. </I></B></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
  have yet to generate positive earnings and we are currently in the process of
  adopting a new business strategy. There can be no assurance that we will ever
  operate profitably. Our Company has no operating history in this new area of
  operations and must be considered in the development stage. Our operations will
  be subject to all the risks inherent in the establishment of a developing
  enterprise and the uncertainties arising from the absence of a significant
  operating history. We may be unsuccessful in entering this new market. We are in
  the development stage and potential investors should be aware of the
  difficulties normally encountered by enterprises in the development stage. If
  our business plan is not successful, and we are not able to operate profitably,
  investors may lose some or all of their investment in our Company. </P>
<P align=center><B><I>Risks Related to Oil and Gas Exploration </I></B></P>
<P align=justify><B>Our operating revenue will be dependent upon the performance
  of our properties. </B></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
  currently have no producing properties. To the extent we develop producing
  properties, our operating revenue will depend upon our ability to profitably
  drill and complete wells that produce commercial quantities of oil and gas and
  our ability to expand our operations through the successful implementation of
  our plans to explore, acquire and develop additional properties. The successful
  development of oil and gas properties requires an assessment of potential
  recoverable reserves, future oil and gas prices, operating costs, potential
  environmental and other liabilities and other factors. Such assessments are
  necessarily inexact. No assurance can be given that we can produce sufficient
  revenue to operate our existing properties or acquire additional oil and gas
  producing properties and leases. We may not discover or successfully produce any
  recoverable reserves in the future, or we may not be able to make a profit from
  the reserves that we may discover. In the event that we are unable to produce
  sufficient operating revenue to fund our operations, we will be forced to seek
  additional, third-party funding, if such funding can be obtained. Such options
  would possibly include debt financing, sale of equity interests in our Company,
  joint venture arrangements, or the sale of oil and gas interests. If we are
  unable to secure such financing on a timely basis, we could be required to delay
  or scale back our operations. If such unavailability of funds continued for an
  extended period of time, this could result in the termination of our operations
  and the loss of an investor&#146;s entire investment. </P>
<P
align=center>6</P>
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<P align=justify><B>We own rights to oil properties that have not yet been
  developed. </B></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
  own rights to oil and gas properties that have limited or no development. There
  are no guarantees that our properties will be developed profitably or that the
  potential oil and gas resources on the property will produce as expected if they
  are developed. </P>
<P align=justify><B>Title to the properties in which we have an interest may be
  impaired by title defects. </B></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
  general policy is to obtain title opinions on significant properties that we
  drill or acquire. However, there is no assurance that we will not suffer a
  monetary loss from title defects or title failure. Additionally, undeveloped
  acreage has greater risk of title defects than developed acreage. Generally,
  under the terms of the operating agreements affecting our properties, any
  monetary loss is to be borne by all parties to any such agreement in proportion
  to their interests in such property. If there are any title defects or defects
  in assignment of leasehold rights in properties in which we hold an interest, we
  will suffer a financial loss. </P>
<P align=justify><B>We are subject to risks arising from the failure to fully
  identify potential problems related to acquired reserves or to properly estimate
  those reserves. </B></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although
  we perform a review of the acquired properties that we believe is consistent
  with industry practices, such reviews are inherently incomplete. It generally is
  not feasible to review in depth every individual property involved in each
  acquisition. Ordinarily, we will focus our review efforts on the higher-value
  properties and will sample the remainder, and depend on the representations of
  previous owners. However, even a detailed review of records and properties may
  not necessarily reveal existing or potential problems, nor will it permit a
  buyer to become sufficiently familiar with the properties to assess fully their
  deficiencies and potential. Inspections may not always be performed on every
  well, and environmental problems, such as ground water contamination, are not
  necessarily observable even when an inspection is undertaken. Even when problems
  are identified, we often assume certain environmental and other risks and
  liabilities in connection with acquired properties. There are numerous
  uncertainties inherent in estimating quantities of proved oil reserves and
  actual future production rates and associated costs with respect to acquired
  properties, and actual results may vary substantially from those assumed in the
  estimates. </P>
<P align=justify><B>If we are unable to successfully recruit qualified
  managerial and field personnel having experience in oil and gas exploration, we
  may not be able to execute on our business plan. </B></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
  order to successfully implement and manage our business plan, we will be
  dependent upon, among other things, successfully recruiting qualified managerial
  and field personnel having experience in the oil and gas exploration business.
  Competition for qualified individuals is intense. There can be no assurance that
  we will be able to find, attract and retain existing employees or that we will
  be able to find, attract and retain qualified personnel on acceptable terms. </P>
<P align=justify><B>Even for producing properties, the potential profitability
  of oil and gas ventures depends upon factors beyond the control of our Company. </B></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  potential profitability of oil and gas properties is dependent upon many factors
  beyond our control. For instance, world prices and markets for oil and gas are
  unpredictable, highly volatile, potentially subject to governmental fixing,
  pegging, controls or any combination of these and other factors, and respond to
  changes in domestic, international, political, social and economic environments.
  Additionally, due to worldwide economic uncertainty, the availability and cost
  of funds for production and other expenses have become increasingly difficult,
  if not impossible, to project. These changes and events may materially affect
  our future financial performance. These factors cannot be accurately predicted
  and the combination of these factors may result in our Company not receiving an
  adequate return on invested capital. </P>
<P align=justify><B>Drilling for oil and gas involves inherent risks that may
  adversely affect our results of operations and financial condition. </B></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Drilling
  for oil and gas involves numerous risks, including the risk that we will not
  encounter commercially productive oil and gas reservoirs. The wells we drill or
  participate in may not be productive and we may not recover all or any portion
  of our investment in those wells. The seismic data and other technologies we use
  do not allow us to know conclusively prior to drilling a well that crude or
  natural gas is present or may be produced economically. The costs of drilling,
  completing and operating wells are often uncertain, and drilling operations may
  be curtailed, delayed or canceled as a result of a variety of factors including,
  but not limited to: </P>
<UL style="TEXT-ALIGN: justify">
  <LI>
    <P>unexpected drilling conditions; </P>
  <LI>
    <P>pressure or irregularities in formations; </P>
  <LI>
    <P>equipment failures or accidents; </P>
  </LI>
</UL>
<p align="center">7</p>
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<UL style="TEXT-ALIGN: justify">
  <LI>
    <P>mechanical difficulties, such as lost or stuck oil field drilling and
      service tools; </P>
  <LI>
    <P>fires, explosions, blowouts and surface cratering; </P>
  <LI>
    <P>uncontrollable flows of oil and formation water; </P>
  <LI>
    <P>environmental hazards, such as oil spills, pipeline ruptures and discharges
      of toxic gases; </P>
  <LI>
    <P>other adverse weather conditions; and </P>
  <LI>
    <P>increase in the cost of, or shortages or delays in the availability of,
      drilling rigs and equipment. </P>
  </LI>
</UL>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain
  future drilling activities may not be successful and, if unsuccessful, this
  failure could have an adverse effect on our future results of operations and
  financial condition. While all drilling, whether developmental or exploratory,
  involves these risks, exploratory drilling involves greater risks of dry holes
  or failure to find commercial quantities of hydrocarbons. </P>
<P align=justify><B>Our oil and gas operations involve substantial costs and are
  subject to various economic risks. </B></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
  oil and gas operations are subject to the economic risks typically associated
  with exploration, development and production activities, including the necessity
  of significant expenditures to locate and acquire producing properties and to
  drill exploratory wells. The cost and length of time necessary to produce any
  reserves may be such that it will not be economically viable. In conducting
  exploration and development activities, the presence of unanticipated pressure
  or irregularities in formations, miscalculations or accidents may cause our
  exploration, development and production activities to be unsuccessful. In
  addition, the cost and timing of drilling, completing and operating wells is
  often uncertain. We also face the risk that the oil and gas reserves may be less
  than anticipated, that we will not have sufficient funds to successfully drill
  on the property, that we will not be able to market the oil and gas due to a
  lack of a market and that fluctuations in the prices of oil will make
  development of those leases uneconomical. This could result in a total loss of
  our investment. </P>
<P align=justify><B>A substantial or extended decline in oil and gas prices may
  adversely affect our business, financial condition, cash flow, liquidity or
  results of operations as well as our ability to meet our capital expenditure
  obligations and financial commitments to implement our business plan. </B></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
  revenues, cash flow, profitability and future rate of growth we achieve will be
  greatly dependent upon prevailing prices for oil and gas. Our ability to
  maintain or increase our borrowing capacity and to obtain additional capital on
  attractive terms is also expected to be dependent on oil and gas prices.
  Historically, oil and gas prices and markets have been volatile and are likely
  to continue to be volatile in the future. Prices for oil and gas are subject to
  potentially wide fluctuations in response to relatively minor changes in supply
  of and demand for oil and gas, market uncertainty, and a variety of additional
  factors beyond our control. Those factors include: </P>
<UL style="TEXT-ALIGN: justify">
  <LI>
    <P>the domestic and foreign supply of oil and natural gas; </P>
  <LI>
    <P>the ability of members of the Organization of Petroleum Exporting Countries
      and other producing countries to agree upon and maintain oil prices and
      production levels; </P>
  <LI>
    <P>political instability, armed conflict or terrorist attacks, whether or not
      in oil or natural gas producing regions; </P>
  <LI>
    <P>the level of consumer product demand; </P>
  <LI>
    <P>the growth of consumer product demand in emerging markets, such as China
      and India; </P>
  <LI>
    <P>weather conditions, including hurricanes and other natural occurrences that
      affect the supply and/or demand of oil and natural gas; </P>
  </LI>
</UL>
<p align="center">8</p>
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<UL style="TEXT-ALIGN: justify">
  <LI>
    <P>domestic and foreign governmental regulations and other actions; </P>
  <LI>
    <P>the price and availability of alternative fuels; </P>
  <LI>
    <P>the price of foreign imports; </P>
  <LI>
    <P>the availability of liquid natural gas imports; and </P>
  <LI>
    <P>worldwide economic conditions. </P>
  </LI>
</UL>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These
  external factors and the volatile nature of the energy markets make it difficult
  to estimate future prices of oil and natural gas. Lower oil and natural gas
  prices may not only decrease our revenues on a per unit basis, but may also
  reduce the amount of oil we can produce economically, if any. A substantial or
  extended decline in oil and natural gas prices may materially affect our future
  business, financial condition, results of operations, liquidity and borrowing
  capacity. While our revenues may increase if prevailing oil and gas prices
  increase significantly, exploration and production costs and acquisition costs
  for additional properties and reserves may also increase. </P>
<P align=justify><B>Competition in the oil and gas industry is highly
  competitive and there is no assurance that we will be successful in acquiring
  viable leases. </B></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  oil and gas industry is intensely competitive. We compete with numerous
  individuals and companies, including many major oil and gas companies which have
  substantially greater technical, financial and operational resources and staffs.
  Accordingly, there is a high degree of competition for desirable oil and gas
  leases, suitable properties for drilling operations and necessary drilling
  equipment, as well as for access to funds. This competition is increasingly
  intense as prices of crude oil and natural gas on the commodities markets have
  risen in recent years. Additionally, other companies engaged in our line of
  business may compete with us from time to time in obtaining capital from
  investors. Competitors include larger companies which, in particular, may have
  access to greater resources, may be more successful in the recruitment and
  retention of qualified employees and may conduct their own refining and
  petroleum marketing operations, which may give them a competitive advantage. If
  we are unable to compete effectively or respond adequately to competitive
  pressures, our results of operation and financial condition may be materially
  adversely affected. </P>
<P align=justify><B>Oil and gas operations are subject to comprehensive
  regulation which may cause substantial delays or require capital outlays in
  excess of those anticipated causing an adverse effect on our Company</B><B><I>. </I></B></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oil
  and gas operations are subject to country-specific federal, state, and local
  laws relating to the protection of the environment, including laws regulating
  removal of natural resources from the ground and the discharge of materials into
  the environment. Oil and gas operations are also subject to country-specific
  federal, state, and local laws and regulations which seek to maintain health and
  safety standards by regulating the design and use of drilling methods and
  equipment. Various permits from governmental bodies are required for drilling
  operations to be conducted and no assurance can be given that such permits will
  be received. Environmental standards imposed by federal, state, provincial, or
  local authorities may be changed and any such changes may have material adverse
  effects on our activities. Moreover, compliance with such laws may cause
  substantial delays or require capital outlays in excess of those anticipated,
  thus causing an adverse effect on us. Additionally, we may be subject to
  liability for pollution or other environmental damages. To date, we have not
  been required to spend any material amount on compliance with environmental
  regulations. However, we may be required to do so in the future and this may
  affect our ability to expand or maintain our operations. </P>
<P align=justify><B>The unavailability or high cost of drilling rigs, equipment,
  supplies, personnel and oil field services could adversely affect our ability to
  execute our exploration and development plans on a timely basis and within our
  budget. </B></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
  industry is cyclical and, from time to time, there is a shortage of drilling
  rigs, equipment, supplies or qualified personnel. During these periods, the
  costs and delivery times of rigs, equipment and supplies are substantially
  greater. In addition, the demand for, and wage rates of, qualified drilling rig
  crews rise as the number of active rigs in service increases. As a result of
  increasing levels of exploration and production in response to strong prices of
  oil and natural gas, the demand for oilfield services and equipment has risen,
  and the costs of these services and equipment are increasing. If the
  unavailability or high cost of drilling rigs, equipment, supplies or qualified
  personnel were particularly severe in areas where we operate, we could be
  materially and adversely affected. </P>
<P align=justify><B>We depend on the skill, ability and decisions of third party
  operators to a significant extent. </B></P>
<P align=center>9</P>
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<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  success of the drilling, development and production of the oil properties in
  which we have or expect to have a working interest is substantially dependent
  upon the decisions of such third-party operators and their diligence to comply
  with various laws, rules and regulations affecting such properties. The failure
  of any third-party operator to make decisions, perform their services, discharge
  their obligations, deal with regulatory agencies, and comply with laws, rules
  and regulations, including environmental laws and regulations in a proper manner
  with respect to properties in which we have an interest could result in material
  adverse consequences to our interest in such properties, including substantial
  penalties and compliance costs. Such adverse consequences could result in
  substantial liabilities to us or reduce the value of our properties, which could
  negatively affect our results of operations. </P>
<P align=justify><B>Exploration and production activities are subject to certain
  environmental regulations which may prevent or delay the commencement or
  continuation of our operations. </B></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
  general, our exploration and production activities are subject to certain
  country-specific federal, state and local laws and regulations relating to
  environmental quality and pollution control. Such laws and regulations increase
  the costs of these activities and may prevent or delay the commencement or
  continuation of a given operation. Compliance with these laws and regulations
  has not had a material effect on our operations or financial condition to date.
  Specifically, we will be subject to legislation regarding emissions into the
  environment, water discharges and storage and disposition of hazardous wastes.
  In addition, legislation has been enacted which requires well and facility sites
  to be abandoned and reclaimed to the satisfaction of U.S. state authorities.
  However, such laws and regulations are frequently changed and we are unable to
  predict the ultimate cost of compliance. Generally, environmental requirements
  do not appear to affect us any differently or to any greater or lesser extent
  than other companies in the industry. We believe that our current operations
  comply, in all material respects, with all applicable environmental regulations. </P>
<P align=center><B><U>Risks Relating to our Common Stock and our Status as a
  Public Company</U></B></P>
<P align=justify><B>We are required to incur significant costs and require
  significant management resources to evaluate our internal control over financial
  reporting as required under Section 404 of the Sarbanes-Oxley Act, and any
  failure to comply or any adverse result from such evaluation may have an adverse
  effect on our stock price. </B></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
  a smaller reporting company as defined in Rule 12b-2 under the Securities
  Exchange Act of 1934, as amended, we are required to evaluate our internal
  control over financial reporting under Section 404 of the Sarbanes-Oxley Act of
  2002 (&#147;Section 404&#148;). Section 404 requires us to include an internal control
  report with the Annual Report on Form 10-K. This report must include
  management&#146;s assessment of the effectiveness of our internal control over
  financial reporting as of the end of the fiscal year. This report must also
  include disclosure of any material weaknesses in internal control over financial
  reporting that we have identified. Failure to comply, or any adverse results
  from such evaluation could result in a loss of investor confidence in our
  financial reports and have an adverse effect on the trading price of our equity
  securities. Management believes that its internal controls and procedures are
  currently not effective to detect the inappropriate application of U.S. GAAP
  rules. Management realize there are deficiencies in the design or operation of
  our internal control that adversely affect our internal controls which
  management considers to be material weaknesses including those described
  below:</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=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Achieving
  continued compliance with Section 404 may require us to incur significant costs
  and expend significant time and management resources. We cannot assure you that
  we will be able to fully comply with Section 404 or that we and our independent
  registered public accounting firm would be able to conclude that our internal
  control over financial reporting is effective at fiscal year-end. As a result,
  investors could lose confidence in our reported financial information, which
  could have an adverse effect on the trading price of our securities, as well as
  subject us to civil or criminal investigations and penalties. In addition, our
  independent registered public accounting firm may not agree with our
  management&#146;s assessment or conclude that our internal control over financial
  reporting is operating effectively. </P>
<P
align=center>10</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_11></A>
<P align=justify><B>A limited public trading market exists for our common stock,
  which makes it more difficult for our stockholders to sell their common stock in
  the public markets. </B></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
  common stock is currently traded under the symbol &#147;AAPH&#148; and currently trades at
  a low volume, based on quotations on the &#147;Over-the-Counter Bulletin Board,&#148;
  meaning that the number of persons interested in purchasing our common stock at
  or near bid prices at any given time may be relatively small or non-existent.
  This situation is attributable to a number of factors, including the fact that
  we are a small company which is still relatively unknown to stock analysts,
  stock brokers, institutional investors, and others in the investment community
  that generate or influence sales volume, and that even if we came to the
  attention of such persons, they tend to be risk-averse and would be reluctant to
  follow an unproven company such as ours or purchase or recommend the purchase of
  our stock until such time as we became more viable. Additionally, many brokerage
  firms may not be willing to effect transactions in the securities. As a
  consequence, there may be periods of several days or more when trading activity
  in our stock is minimal or nonexistent, as compared to a seasoned issuer which
  has a large and steady volume of trading activity that will generally support
  continuous sales without an adverse effect on share price. We cannot give you
  any assurance that a broader or more active public trading market for our common
  stock will develop or be sustained, or that trading levels will be sustained. </P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
  the past, securities class action litigation has often been brought against a
  company following periods of volatility in the market price of its securities.
  Due to the volatility of our common stock price, we may be the target of
  securities litigation in the future. Securities litigation could result in
  substantial costs and divert management&#146;s attention and resources. </P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shareholders
  should also be aware that, according to SEC Release No. 34-29093, the market for
  &#147;penny stock,&#148; such as our common stock, has suffered in recent years from
  patterns of fraud and abuse. Such patterns include (1) control of the market for
  the security by one or a few broker-dealers that are often related to the
  promoter or issuer; (2) manipulation of prices through prearranged matching of
  purchases and sales and false and misleading press releases; (3) boiler room
  practices involving high-pressure sales tactics and unrealistic price
  projections by inexperienced sales persons; (4) excessive and undisclosed
  bid-ask differential and markups by selling broker-dealers; and (5) the
  wholesale dumping of the same securities by promoters and broker-dealers after
  prices have been manipulated to a desired level, along with the resulting
  inevitable collapse of those prices and with consequent investor losses. Our
  management is aware of the abuses that have occurred historically in the penny
  stock market. Although we do not expect to be in a position to dictate the
  behavior of the market or of broker-dealers who participate in the market,
  management will strive within the confines of practical limitations to prevent
  the described patterns from being established with respect to our securities.
  The occurrence of these patterns or practices could increase the future
  volatility of our share price. </P>
<P align=justify><B>To date, we have not paid any cash dividends and no cash
  dividends will be paid in the foreseeable future.</B> </P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
  do not anticipate paying cash dividends on our common stock in the foreseeable
  future and we may not have sufficient funds legally available to pay dividends.
  Even if the funds are legally available for distribution, we may nevertheless
  decide not to pay any dividends. We presently intend to retain all earnings for
  our operations. </P>
<P align=justify><B>Our stock is categorized as a penny stock. Trading of our
  stock may be restricted by the SEC&#146;s penny stock regulations which may limit a
  shareholder&#146;s ability to buy and sell our stock. </B></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
  stock is categorized as a &#147;penny stock.&#148; The SEC has adopted Rule 15g-9 which
  generally defines &#147;penny stock&#148; to be any equity security that has a market
  price (as defined) less than $4.00 per share or an exercise price of less than
  $5.00 per share, subject to certain exceptions. Our securities are covered by
  the penny stock rules, which impose additional sales practice requirements on
  broker-dealers who sell to persons other than established customers and
  accredited investors. The penny stock rules require a broker-dealer, prior to a
  transaction in a penny stock not otherwise exempt from the rules, to deliver a
  standardized risk disclosure document in a form prepared by the SEC which
  provides information about penny stocks and the nature and level of risks in the
  penny stock market. The broker-dealer also must provide the customer with
  current bid and offer quotations for the penny stock, the compensation of the
  broker-dealer and its salesperson in the transaction and monthly account
  statements showing the market value of each penny stock held in the customer&#146;s
  account. The bid and offer quotations, and the broker-dealer and salesperson
  compensation information, must be given to the customer orally or in writing
  prior to effecting the transaction and must be given to the customer in writing
  before or with the customer&#146;s confirmation. In addition, the penny stock rules
  require that prior to a transaction in a penny stock not otherwise exempt from
  these rules, the broker-dealer must make a special written determination that
  the penny stock is a suitable investment for the purchaser and receive the
  purchaser&#146;s written agreement to the transaction. These disclosure requirements
  may have the effect of reducing the level of trading activity in the secondary
  market for the stock that is subject to these penny stock rules. Consequently,
  these penny stock rules may affect the ability of broker-dealers to trade our
  securities. We believe that the penny stock rules discourage investor interest
  in and limit the marketability of our common stock. </P>
<P align=justify><B>FINRA sales practice requirements may also limit a
  shareholder&#146;s ability to buy and sell our stock. </B></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
  addition to the &#147;penny stock&#148; rules described above, the Financial Industry
  Regulatory Authority (&#147;FINRA&#148;) has adopted rules that require in recommending an
  investment to a customer, a broker-dealer must have reasonable grounds for
  believing that the investment is suitable for that customer. Prior to
  recommending speculative low priced securities to their non-institutional
  customers, broker-dealers must make reasonable efforts to obtain information
  about the customer&#146;s financial status, tax status, investment </P>
<P
align=center>11</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_12></A>
<P align=justify>objectives and other information. Under interpretations of
  these rules, FINRA believes that there is a high probability that speculative
  low priced securities will not be suitable for at least some customers. The
  FINRA requirements make it more difficult for broker-dealers to recommend that
  their customers buy our common stock, which may limit your ability to buy and
  sell our stock and have an adverse effect on the market for our shares. </P>
<P align=justify><B>The elimination of monetary liability against our directors,
  officers and employees under Nevada law and the existence of indemnification
  rights to our directors, officers and employees may result in substantial
  expenditures by our company and may discourage lawsuits against our directors,
  officers and employees.</B> </P>
<P align=justify>Our Articles of Incorporation and Bylaws contain a provision
  permitting us to eliminate the personal liability of our directors to our
  company and shareholders for damages for breach of fiduciary duty as a director
  or officer to the extent provided by Nevada law. We may also have contractual
  indemnification obligations under our employment agreements with our officers.
  The foregoing indemnification obligations could result in the Company incurring
  substantial expenditures to cover the cost of settlement or damage awards
  against directors and officers, which we may be unable to recoup. These
  provisions and resultant costs may also discourage our Company from bringing a
  lawsuit against directors and officers for breaches of their fiduciary duties,
  and may similarly discourage the filing of derivative litigation by our
  shareholders against our directors and officers even though such actions, if
  successful, might otherwise benefit our company and shareholders. </P>
<P align=justify><B>ITEM 1B</B> <B>&#151; UNRESOLVED STAFF COMMENTS </B></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  None.</P>
<P align=justify><B>ITEM 2</B> <B>&#151; PROPERTIES</B></P>
<P align=justify><I>Facilities </I></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Our corporate headquarters are located at 250 N. Rock Rd., Suite 365, Wichita,
  Kansas 67206. </P>
<P align=justify><I>Reserves </I></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  As of the end of the 2013 fiscal year, the Company has no proved reserves. </P>
<P align=justify><I>Production, Production Prices and Production Costs </I></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Sales of oil during the 2013 fiscal year amounted to $120,758 for 1,692 barrels
  at an average price of $71.37 per barrel and at an average production cost per
  barrel of $40.26. Sales of oil during the 2012 fiscal year amounted to $267,109
  for 2,831 barrels at an average price of $94.56 per barrel and at an average
  production cost per barrel of $30.22. Sales of oil during the 2011 fiscal year
  amounted to $298,390 for 3,834.50 barrels at an average price of $77.82 per
  barrel and at an average production cost per barrel of $16.50. Production costs
  are expected to increase as production increases. All of our oil production has
  occurred in the United States. </P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales
  of gas during the 2013 fiscal year amounted to $20,463 for 1,047 barrels of oil
  equivalent (BOE), based upon a 6:1 ratio of MCF gas to barrels of oil, at an
  average price of $19.54 per BOE and at an average production cost per BOE of
  $1.38. Sales of gas during the 2012 fiscal year amounted to $41,061 for 993.5
  barrels of oil equivalent (BOE), based upon a 6:1ratio of MCF gas to barrels of
  oil, at an average price of $41.33 per BOE and at an average production cost per
  BOE of $2.64. Sales of gas during the 2011 fiscal year amounted to $19,541 for
  602.1 barrels of oil equivalent (BOE), based upon a 6:1 ratio of MCF gas to
  barrels of oil, at an average price of $32.45 per BOE and at an average
  production cost per BOE of $2.46. Production costs are expected to increase as
  production increases. Prior to the 2011 fiscal year we had not had any gas
  production. All of our gas production has occurred in the United States. </P>
<P align=justify><I>Past and Present Development Activities </I></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  We have no current plans to drill any exploratory or development wells. </P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
  the 2013 fiscal year we did not drill any exploratory wells in the United
  States. We did not drill any development wells during the 2013 fiscal year. As
  of the end of the 2013 fiscal year, no additional wells were being drilled. </P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
  the 2012 fiscal year we drilled three exploratory wells in the United States,
  these being the NOM-3H, SOM-1H and NOS-222 wells. All three wells were completed
  and put into commercial production. </P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
  the 2011 fiscal year we drilled five exploratory wells in the United States, of
  which two were net productive. The other three exploratory wells did not contain
  sufficient volumes to be considered commercial and two of these wells were not
  completed. We did not drill any development wells during the 2011 fiscal year.
  During the 2010 fiscal year we drilled seven exploratory wells in the United
  States, of which three were net productive and four did not contain sufficient
  volumes to warrant completion for commercial production. We did not drill any
  development wells during the 2010 fiscal year. </P>
<P
align=center>12</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_13></A>
<P align=justify><I>Delivery Commitments </I></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  As of December 31, 2013, we had no delivery commitments for oil or natural gas
  under existing contracts or agreements. </P>
<P align=justify><I>Properties, Wells, Operations, Acreage and Current
  Activities </I></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  The following table sets forth our interest in wells and acreage as of April 25,
  2014.</P>
<DIV align=right>
  <TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="90%" border=0>
    <TR vAlign=top>
      <TD align=center>&nbsp;</TD>
      <TD colspan="2" align=center><U>Number of Productive Wells </U>(1) </TD>
      <TD colspan="2" align=center><U>Developed Acreage </U>(4) </TD>
      <TD colspan="2" align=center><U>Undeveloped Acreage</U> </TD>
    </TR>
    <TR vAlign=top>
      <TD align=center>&nbsp;</TD>
      <TD align=center width="14%"><U>Gross (2)</U> </TD>
      <TD align=center width="14%"><U>Net (3)</U> </TD>
      <TD align=center width="14%"><U>Gross (2)</U> </TD>
      <TD align=center width="14%"><U>Net (3)</U> </TD>
      <TD align=center width="14%"><U>Gross (2)</U> </TD>
      <TD align=center width="14%"><U>Net (3)</U> </TD>
    </TR>
    <TR vAlign=top>
      <TD align=center bgColor=#e6efff>Oil </TD>
      <TD align=center width="14%" bgColor=#e6efff>0 </TD>
      <TD align=center width="14%" bgColor=#e6efff>0 </TD>
      <TD align=center width="14%" bgColor=#e6efff>0 </TD>
      <TD align=center width="14%" bgColor=#e6efff>0 </TD>
      <TD align=center width="14%" bgColor=#e6efff>738 </TD>
      <TD align=center width="14%" bgColor=#e6efff>184.5 </TD>
    </TR>
    <TR vAlign=top>
      <TD align=center>Gas </TD>
      <TD align=center width="14%">0 </TD>
      <TD align=center width="14%">0 </TD>
      <TD align=center width="14%">0 </TD>
      <TD align=center width="14%">0 </TD>
      <TD align=center width="14%">0 </TD>
      <TD align=center width="14%">0 </TD>
    </TR>
  </TABLE>
</DIV>
<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%">(1) </TD>
    <TD><P align=justify>A well which has both oil and gas completions is
      classified as an oil well.</P></TD>
  </TR>
  <TR>
    <TD vAlign=top width="5%">(2) </TD>
    <TD><P align=justify>A gross well or acre is a well or acre in which we own an
      interest.</P></TD>
  </TR>
  <TR>
    <TD vAlign=top width="5%">(3) </TD>
    <TD><P align=justify>A net well or acre is deemed to exist when the sum of
      fractional ownership interests in wells or acres equals 1.</P></TD>
  </TR>
  <TR>
    <TD vAlign=top width="5%">(4) </TD>
    <TD><P align=justify>Developed acreage is acreage assignable to productive
      wells.</P></TD>
  </TR>
</TABLE>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  As of April 25, 2014, we have no developed acreage or producing wells. </P>
<P align=justify><B>ITEM 3</B> <B>&#151; LEGAL PROCEEDINGS</B></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 4</B> <B>&#151; MINE SAFETY DISCLOSURES</B></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Not applicable. </P>
<P align=center><B>PART II </B></P>
<P align=justify><B>ITEM 5</B> <B>&#151; MARKET FOR REGISTRANT&#146;S COMMON EQUITY,
  RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES</B></P>
<P align=justify><B>Market Information </B></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Our common stock is traded on the Over the Counter Bulletin Board under the
  symbol AAPH. </P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  following is the range of high and low bid prices for our common stock for the
  periods indicated. The quotations reflect inter-dealer prices, without retail
  mark-up, mark-down or commissions and may not represent actual transactions. </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=left><B>Fiscal 2013</B> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="11%"><B>High</B> </TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="11%"><B>Low</B> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>First Quarter (March 31, 2013) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="11%" bgColor=#e6efff>&nbsp;.135 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="11%" bgColor=#e6efff>&nbsp;.06 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Second Quarter (June 30, 2013) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="11%">&nbsp;.0649 </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="11%">&nbsp;.0101 </TD>
    <TD align=left width="1%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Third Quarter (September 30, 2013) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="11%" bgColor=#e6efff>&nbsp;.07 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="11%" bgColor=#e6efff>&nbsp;.008 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Fourth Quarter (December 31, 2013) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="11%">&nbsp;.0328 </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="11%">&nbsp;.01 </TD>
    <TD align=left width="1%" >&nbsp;</TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B>Fiscal 2012</B> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="11%"><B>High</B> </TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="11%"><B>Low</B> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>First Quarter (March 31, 2012) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="11%" bgColor=#e6efff>&nbsp;.429 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="11%" bgColor=#e6efff>&nbsp;.1812 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Second Quarter (June 30, 2012) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="11%">&nbsp;.29 </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="11%">&nbsp;.18 </TD>
    <TD align=left width="1%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Third Quarter (September 30, 2012) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="11%" bgColor=#e6efff>&nbsp;.205 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="11%" bgColor=#e6efff>&nbsp;.136 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Fourth Quarter (December 31, 2012) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="11%">&nbsp;.18 </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="11%">&nbsp;.06 </TD>
    <TD align=left width="1%" >&nbsp;</TD>
  </TR>
</TABLE>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  The closing price for our common stock on December 31, 2012 was $0.06. </P>
<P align=justify><B>Stockholders </B></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
  of April 25, 2014, there were 121,740,587 shares of common stock issued and
  outstanding held by 74 stockholders of record (not including street name
  holders). </P>
<P
align=center>13</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_14></A>
<P align=justify><B>Dividends </B></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
  have not paid dividends to date and do not anticipate paying any dividends in
  the foreseeable future. Our Board of Directors intends to follow a policy of
  retaining earnings, if any, to finance our growth. The declaration and payment
  of dividends in the future will be determined by our Board of Directors in light
  of conditions then existing, including our earnings, financial condition,
  capital requirements and other factors. </P>
<P align=justify><B>Unregistered Sales of Equity Securities </B></P>
<P align=justify>None. </P>
<P align=justify><B>ITEM 6</B> <B>&#151; SELECTED FINANCIAL DATA </B></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Not applicable. </P>
<P align=justify><B>ITEM 7</B> <B>&#151; MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF
  FINANCIAL CONDITION AND RESULTS OF OPERATIONS</B></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  following discussion should be read in conjunction with our consolidated
  financial statements and notes thereto included elsewhere in this 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>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
  have operated as an oil and natural gas exploration and production (E&amp;P)
  company. On March 5, 2014, we issued a press release discussing our plans to
  expand our business to include the acquisition and operation of workforce
  accommodation facilities servicing the energy industry, in addition to our
  continued exploration, development and production of crude oil and natural gas
  properties. On March 10, 2014, we sold all of our rights in and to certain
  properties located in Payne and Lincoln Counties in Oklahoma, which included all
  of our producing wells. </P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
  2013, we had rights in six producing wells in Oklahoma arising out of our 2010
  operating agreement with Bay Petroleum Corp. (&#147;Bay&#148;). One of these wells began
  production in mid-2010, an additional two wells, including one horizontal well,
  began production in 2011, and an additional three wells, including two
  horizontal wells, began production in 2012. Collectively, daily production from
  the Oklahoma wells averaged 5.48 barrels per day in 2013 from cumulative
  production from all wells of 12,005 barrels. </P>
<P align=justify><B>2013 Highlights </B></P>
<P align=justify><I>Exploration and Development </I></P>
<P align=justify>We did not drill any exploration or development wells in 2103. </P>
<P align=justify><I>Production </I></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
  total 2013 fiscal year production was net 1,691.6 barrels of oil and 1,047 BOE
  or 6,282 MCF of natural gas, based upon a 6:1 ratio of MCF gas to barrels of
  oil. Average daily production for the 2013 fiscal year averaged 7.5 barrels of
  oil, a decrease of 24.3% from the 2012 fiscal year daily production of 9.9
  barrels. Average daily gas production for the 2013 fiscal year averaged 2.86
  BOE, or 17.2 MCF, a decrease of 46.8% from the 2012 fiscal year daily production
  of 5.37 BOE, or 32.3 MCF.<I> </I></P>
<P align=justify><I>Leaseholds</I> </P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
  March 10, 2014, in part due to a desire to expand our business focus to the
  operation of workforce accommodation facilities servicing the energy industry,
  we sold all of our rights in and to certain properties located in Payne and
  Lincoln Counties in Oklahoma, which included all of our producing wells and our
  rights under our agreements with Bay, for cash consideration of $540,000. </P>
<P align=justify><B>2014 Outlook </B></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  In 2014, we will be focused on developing our oil field service &#147;man-camp&#148;
  facility project in East Texas. In connection </P>
<P
align=center>14</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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<A name=page_15></A>
<P align=justify>with this new business strategy, the Company expects it will
  undertake changes to the Company&#146;s management team and Board of Directors and
  may change the name of the Company to reflect the shift in its business focus. </P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
  future operations and shift in business focus will require substantial capital
  expenditures and we have no expectations of revenues in the near term.
  Therefore, we are dependent upon the identification and successful completion of
  additional long-term or permanent equity financings, the support of creditors
  and shareholders, and, ultimately, the achievement of profitable operations.
  There can be no assurances that we will be successful, which would in turn
  significantly affect our ability to meet our business objectives. If we are not
  successful we will likely be required to reduce operations or liquidate assets.
  We will continue to evaluate our projected expenditures relative to our
  available cash and to seek additional means of financing in order to satisfy our
  acquisition, working capital and other cash requirements. </P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  We continue to operate with very limited administrative support, and our current
  officers and directors continue to be responsible for many duties to preserve
  our working capital. We expect no significant changes in the number of employees
  over the next 12 months. </P>
<P align=justify><B>Critical Accounting Policies </B></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  preparation of financial statements in conformity with United States generally
  accepted accounting principles 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>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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
  accounting principles generally accepted in the United States of America. 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, 2013. As of, and for the
  year ended December 31, 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>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  discussion and financial statements contained herein are for our fiscal year
  ended December 31, 2013 and December 31, 2012. The following discussion
  regarding our financial statements should be read in conjunction with our
  financial statements included herewith. </P>
<P align=justify><B>Financial Condition as of December 31, 2013 </B></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
  reported total current assets of $29,585 at December 31, 2012, consisting of
  cash of $15,793 and accounts receivable of $13,792. Total current liabilities
  reported of $2,069,498 included accounts payable of $885,746, note payable and
  accrued interest of $1,014,722 and 169,030 respectively. The Company had a
  working capital deficit of $2,039,913 at December 31, 2013. </P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stockholders&#146;
  Equity/Deficit was a Deficit of 1,493,052 at December 31, 2013, compared to
  Stockholders&#146; Equity of $12,242 at December 31, 2012. </P>
<P align=justify><B>Cash and Cash Equivalents </B></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
  of December 31, 2013, we had cash of $15,793. We anticipate that a substantial
  amount of cash will be used as working capital and to execute our strategy and
  business plan. As such, we further anticipate that we will have to raise
  additional capital through debt or equity financings to fund our operations
  during the next 6 to 12 months. </P>
<P align=justify><B>Results of Operations for the Fiscal Year Ended December 31,
  2013 </B></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  For the fiscal year ended December 31, 2013, we incurred a net loss of
  $2,667,235. </P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General
  and administration expenses for the fiscal year end December 31, 2013, amounted
  to $570,759 compared to $575,783 in 2012. Executive compensation for the 2013
  fiscal year end was $204,000 compared to $481,000 in 2012. </P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
  the third quarter of 2013, management reviewed the carrying amount of the
  Company&#146;s investments in its oil and gas properties and recognized an impairment
  expense in the amount of $1,172,547 for the year ended December 31, 2013. As of
  December 31, 2013, the investment in these mineral properties is $400,000 net of
  accumulated amortization of $185,457. </P>
<P align=justify><B>Results of Operations for the Fiscal Year Ended December 31,
  2012 </B></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  For the fiscal year ended December 31, 2012, we incurred a net loss of
  $3,303,136. </P>
<P
align=center>15</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_16></A>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General
  and administration expenses for the fiscal year end December 31, 2012, amounted
  to $575,783 compared to $635,091 in 2011. Executive compensation for the 2012
  fiscal year end was $481,000 compared to $602,000 in 2011. </P>
<P align=justify><B>Liquidity and Capital Resources </B></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
  of December 31, 2013, we had cash of $15,793, and working capital deficiency of
  $2,039,913. During the year ended December 31, 2013, we funded our operations
  from the proceeds of private convertible note issuances and producing well
  revenues. We are currently seeking further financing to fund our operations and
  implementation of our revised business strategy. Changes in our operating plans,
  increased expenses, acquisitions, or other events, may cause us to seek
  additional equity or debt financing in the future. </P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
  the year ended December 31, 2013, we used net cash of $438,087 in operations
  compared to $427,851 for the year ended December 31, 2012. Net cash used in
  operating activities included an increase of impairment expense of $606,810 and
  a decrease of amortization of mineral properties of $52,923. </P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
  March 22, 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 the
  applicable floor price established by the Company. We paid to Hanover 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 the Shares, which registration statement was declared effective
  September 1, 2013. </P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 credit facility is secured by all of
  our assets. At this time approximately $626,000 has been advanced under the ASYM
  credit facility. On February 14, 2014, the Company entered into an agreement to
  sell its revenue producing investments in mineral properties, effective January
  1, 2014, for $540,000. The sale was completed on March 10, 2014. The proceeds
  were used to pay off approximately $460,000 of the note payable to ASYM plus
  some accrued interest. We do not expect to receive additional funds from the
  ASYM facility at this time as we do not qualify under the agreement covenants. </P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subsequent
  to the year ended December 31, 2013, $83,660 of outstanding notes payable was
  converted into 20,415,152 shares of our common stock.</P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subsequent
  to the year ended December 31, 2013, February of 2014, JMJ Financial loaned an
  additional $30,000 to the Company. </P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
  addition, during the year ended December 31, 2013, we raised $60,278 from the
  sale of common stock and $420,566 from the proceeds of notes payable. We also
  recorded $141,221 in revenue during the year ended December 31, 2013 from our
  producing wells. </P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
  current cash requirements are significant due to our changed business focus and
  the disposition of our revenue producing properties. Additionally, we have an
  aggregate of $2,069,498 in current liabilities. 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 operations and
  carry out our business plan.</P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There
  is no assurance 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 strategy 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
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  There are no off-balance sheet arrangements. </P>
<P
align=center>16</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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<A name=page_17></A>
<P align=justify><B>Capital Expenditures </B></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
  made capital expenditure investments in the aggregate amount of $43,180 during
  the fiscal year ending December 31, 2013. At December 31, 2013 the company had
  investments in mineral properties, valued at cost for a total of $400,000 net of
  amortization. </P>
<P align=justify><B>Contractual Obligations </B></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  following table outlines payments due under our significant contractual
  obligations over the periods shown, exclusive of interest: </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=center>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="1%"
    >&nbsp;</TD>
      <TD colspan="13" align=center style="BORDER-BOTTOM: #000000 1px solid"><B>Payments Due by Period</B> </TD>
      <TD align=left width="2%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=center><B>Contractual Obligations</B> </TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="9%">&nbsp;</TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="9%"><B>Less than</B> </TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="9%">&nbsp;</TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="9%">&nbsp;</TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="9%"><B>More than</B> </TD>
      <TD align=left width="2%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B>At December
        31, 2013</B> </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="1%"
    >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="9%"><B>Total</B> </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="2%"
    >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="1%"
    >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="9%"><B>1
        Year</B> </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="2%"
    >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="1%"
    >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="9%"><B>1-3 years</B> </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="9%"><B>3-5 years</B> </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="9%"><B>5
        years</B> </TD>
      <TD align=left width="2%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff>Note Payable </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="9%"
    bgColor=#e6efff>&nbsp;1,306,308 </TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="9%"
    bgColor=#e6efff>&nbsp;1,306,308 </TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="9%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="9%" bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="9%" bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR>
      <TD></TD>
      <TD width="1%" >&nbsp;</TD>
      <TD width="9%"></TD>
      <TD width="2%" >&nbsp;</TD>
      <TD width="1%" >&nbsp;</TD>
      <TD width="9%"></TD>
      <TD width="2%" >&nbsp;</TD>
      <TD width="1%" >&nbsp;</TD>
      <TD width="9%"></TD>
      <TD width="2%" >&nbsp;</TD>
      <TD width="1%" >&nbsp;</TD>
      <TD width="9%"></TD>
      <TD width="2%" >&nbsp;</TD>
      <TD width="1%" >&nbsp;</TD>
      <TD width="9%"></TD>
      <TD width="2%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp; &nbsp;
        &nbsp;<B>Total</B> </TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
     bgColor=#e6efff>$</TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="9%"
    bgColor=#e6efff>&nbsp;1,306,308 </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="9%"
    bgColor=#e6efff>&nbsp;1,306,308 </TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="9%"
    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="9%" 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="9%" bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="2%"
  bgColor=#e6efff>&nbsp;</TD>
    </TR>
  </TABLE>
</DIV>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  above table outlines our obligations as of December 31, 2013 and does not
  reflect any changes in our obligations that have occurred after that date. </P>
<P align=justify><B>ITEM 7A</B> <B>&#151; QUANTITATIVE AND QUALITATIVE DISCLOSURES
  ABOUT MARKET RISK</B></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Not applicable. </P>
<P align=justify><B>ITEM 8</B> <B>&#151; FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA </B></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reference
  is made to the financial statements, the reports of our independent registered
  public accounting firm, and the notes thereto of this report, which financial
  statements, reports, and notes are incorporated herein by reference. </P>
<P align=justify><B>ITEM 9</B> <B>&#151; CHANGES IN AND DISAGREEMENT WITH ACCOUNTANTS
  ON ACCOUNTING AND FINANCIAL DISCLOSURE </B></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  None. </P>
<P align=justify><B>ITEM 9A</B> <B>&#151; CONTROLS AND PROCEDURES</B></P>
<P align=justify><B>Evaluation of Disclosure Controls and Procedures </B></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
  Principal Executive Officer and Principal Financial Officer have evaluated our
  disclosure controls and procedures as of December 31, 2013. Based upon that
  evaluation, our Principal Executive Officer and Principal Financial Officer
  concluded that our disclosure controls and procedures are not effective as of
  December 31, 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  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</P></TD>
  </TR>
</TABLE>
<p align="center">17</p>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_18></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%"  >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD><P align=justify>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=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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><B>Changes in Internal Controls Over Financial Reporting </B></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There
  were no changes in our internal control over financial reporting that occurred
  during the fourth quarter of 2013 that have materially affected or are
  reasonably likely to materially affect our internal control over financial
  reporting. </P>
<P align=justify><B>ITEM 9B</B> <B>&#151; OTHER INFORMATION</B></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  None. </P>
<P align=center><B>PART III </B></P>
<P align=justify><B>ITEM 10</B> <B>&#151; DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE
  GOVERNANCE </B></P>
<P align=justify><B>Directors and Executive Officers </B></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  following table sets forth the names and ages of our current directors and
  executive officers, the principal offices and positions held by each person: </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=left><B>Person</B> </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="10%"
    ><B>Age</B> </TD>
    <TD align=left width="2%"  >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="65%"
    ><B>Position</B> </TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="2%"  >&nbsp;</TD>
    <TD width="10%" >&nbsp;</TD>
    <TD width="2%"  >&nbsp;</TD>
    <TD width="65%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Robert McIntosh </TD>
    <TD align=center width="2%"  bgColor=#e6efff
></TD>
    <TD align=center width="10%" bgColor=#e6efff >53 </TD>
    <TD align=left width="2%"  bgColor=#e6efff ></TD>
    <TD align=left width="65%" bgColor=#e6efff >Director;
      President, Chief Executive Officer and Chief Financial Officer </TD>
  </TR>
</TABLE>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Our board of directors believes that its members encompass a range of talent,
  skill, and experience sufficient to provide sound and prudent guidance with
  respect to our operations and interests. The information below with respect to
  our directors includes each director&#146;s experience, qualifications, attributes,
  and skills that led our board of directions to the conclusion that he or she
  should serve as a director. </P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Robert
  McIntosh. </B>On June 2, 2010, Mr. McIntosh became our President and Chief
  Executive Officer and in July 2012 he also became our Chief Financial Officer.
  Prior to that, Mr. McIntosh had been our Chief Operating Officer and a Director
  on our Board since March 2009. Prior to joining our company, Mr. McIntosh served
  as President of Silver Star Energy, Inc. from September 2003 to May 2008 and as
  President of Bancroft Uranium, Inc. from July 2008 to December 2008. Mr.
  McIntosh has been a businessman and consulting geologist for the past 25 years.
  He is experienced both as a resource exploration geoscientist alongside
  noteworthy strengths in all facets of corporate development. Since 1983 his
  career has taken him across the Americas and abroad where he has been
  instrumental in the design, implementation, execution and management of programs
  in the oil, gas, precious and base metals segments of the resource sector. His
  skills encompass virtually every aspect of oil &amp; gas exploration, well
  completion and production techniques alongside a diverse experience in project
  acquisition, negotiations, contracts, and project divestitures within the
  petroleum industry. He has developed significant expertise and industry contacts
  in his various roles across the publicly traded market sector as well as with
  private junior E&amp;P companies. Mr. McIntosh has successfully assisted his
  clients and stakeholders in the U.S.A. and Canada on projects that ultimately
  became producing properties where he has contributed in full field exploitation
  programs with additional traditional and secondary forms of drilling and
  completions, along with ongoing well site supervision aimed at fully optimizing
  the overall asset. Mr. McIntosh&#146;s business experience, and his 25 year career as
  a consulting geologist, gives him </P>
<P
align=center>18</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_19></A>
<P align=justify>unique insights into our challenges, opportunities, and
  operations. </P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Except as set forth above, no officer or director has been involved in any
  material legal proceeding.</P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  There are no arrangements, understandings, or family relationships pursuant to
  which our executive officers were selected. </P>
<P align=justify><B>Audit Committee Financial Expert </B></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
  Board of Directors has not established a separate audit committee within the
  meaning of Section 3(a)(58)(A) of the Securities Exchange Act of 1934, as
  amended (the &#147;Exchange Act&#148;). Instead, the entire Board of Directors acts as the
  audit committee within the meaning of Section 3(a)(58)(B) of the Exchange Act.
  None of the Company&#146;s directors currently meets the definition of an &#147;audit
  committee financial expert&#148; within the meaning of Item 407(d)(5) of Regulation
  S-K. We are seeking candidates for outside directors and for a financial expert
  to serve on a separate audit committee when we establish one. Due to our small
  size and limited operations and resources, it has been difficult to recruit
  outside directors and financial experts. </P>
<P align=justify><B>Section 16(a) Beneficial Ownership Reporting Compliance </B></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
  connection with the acquisition of 4,101,844 shares of our common stock on
  September 28, 2013, Robert McIntosh was required to file a Form 4 no later than
  October 1, 2013. Mr. McIntosh filed the Form 4 on October 3, 2013. </P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
  as set forth above, and based solely upon a review of Forms 3, 4 and 5 delivered
  to us during our most recent fiscal year, as filed with the Securities Exchange
  Commission, as of December 31, 2013, all of our executive officers and
  directors, and persons who own more than 10% of our Common Stock timely filed
  all required reports pursuant to Section 16(a) of the Securities Exchange Act. </P>
<P align=justify><B>Code of Ethics </B></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  On July 20, 2009, our Board of Directors adopted a Code of Ethical Conduct that
  provides an ethical standard for all employees, officers and directors. A copy
  of the Code of Ethical Conduct will be provided, without charge, to any person
  who so requests. A copy of the Code of Ethical Conduct may be requested via the
  following address or phone number: </P>
<P style="MARGIN-LEFT: 5%" align=justify>American Petro-Hunter Inc. <BR>
  250 N.
  Rock Rd., Suite 365 <BR>
  Wichita KS, 67206 <BR>
  (316) 201-1853 <BR>
</P>
<P align=justify><B>ITEM 11</B> <B>&#151; EXECUTIVE COMPENSATION</B></P>
<P align=justify><B>Summary Compensation </B></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  summary compensation table below shows certain compensation information for
  services rendered in all capacities to us by our principal executive officer and
  principal financial officer and by each other executive officer whose total
  annual salary and bonus exceeded $100,000 during the fiscal periods ended
  December 31, 2012 and December 31, 2013. Other than as set forth below, no
  executive officer&#146;s total annual compensation exceeded $100,000 during our last
  fiscal period. </P>
<P align=center><B>Summary Compensation Table </B></P>
<DIV>
  <TABLE
style="BORDER-COLOR: black; FONT-SIZE: 9pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
    <TR vAlign=top>
      <TD align=left >&nbsp;</TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=center width="6%">&nbsp;</TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="6%">&nbsp;</TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="6%">&nbsp;</TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="6%">&nbsp;</TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="6%">&nbsp;</TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="6%"><B>Non</B> </TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="6%">&nbsp;</TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="6%">&nbsp;</TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="6%">&nbsp;</TD>
      <TD align=left width="2%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left >&nbsp;</TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=center width="6%">&nbsp;</TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="6%">&nbsp;</TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="6%">&nbsp;</TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="6%">&nbsp;</TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="6%">&nbsp;</TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="6%"><B>Equity</B> </TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="6%"><B>Non-qualified</B> </TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="6%">&nbsp;</TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="6%">&nbsp;</TD>
      <TD align=left width="2%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left >&nbsp;</TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=center width="6%">&nbsp;</TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="6%">&nbsp;</TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="6%">&nbsp;</TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="6%">&nbsp;</TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="6%">&nbsp;</TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="6%"><B>Incentive</B> </TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="6%"><B>Deferred</B> </TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="6%">&nbsp;</TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="6%">&nbsp;</TD>
      <TD align=left width="2%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left >&nbsp;</TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=center width="6%">&nbsp;</TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="6%">&nbsp;</TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="6%">&nbsp;</TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="6%"><B>Stock</B> </TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="6%"><B>Option</B> </TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="6%"><B>Plan</B> </TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="6%"><B>Compensation</B> </TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="6%"><B>All Other</B> </TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="6%">&nbsp;</TD>
      <TD align=left width="2%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left >&nbsp;</TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=center width="6%">&nbsp;</TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="6%"><B>Salary</B> </TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="6%"><B>Bonus</B> </TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="6%"><B>Awards</B> </TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="6%"><B>Awards</B> </TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="6%"><B>Compensation</B> </TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="6%"><B>Earnings</B> </TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="6%"><B>Compensation</B> </TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="6%"><B>Total</B> </TD>
      <TD align=left width="2%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left >&nbsp;</TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=center width="6%"><B>Year</B> </TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="6%"><B>($)</B> </TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="6%"><B>($)</B> </TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="6%"><B>($)</B> </TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="6%"><B>($)</B> </TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="6%"><B>($)</B> </TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="6%"><B>($)</B> </TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="6%"><B>($)</B> </TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="6%"><B>($)</B> </TD>
      <TD align=left width="2%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left >&nbsp; &nbsp; &nbsp;<B>Name and Principal
        Position (a)</B> </TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=center width="6%"><B>(b)</B> </TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="6%"><B>(c)</B> </TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="6%"><B>(d)</B> </TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="6%"><B>(e)</B> </TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="6%"><B>(f)</B> </TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="6%"><B>(g)</B> </TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="6%"><B>(h)</B> </TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="6%"><B>(i)</B> </TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="6%"><B>(j)</B> </TD>
      <TD align=left width="2%" >&nbsp;</TD>
    </TR>
    <TR>
      <TD >&nbsp;</TD>
      <TD width="1%" >&nbsp;</TD>
      <TD width="6%">&nbsp;</TD>
      <TD width="2%" >&nbsp;</TD>
      <TD width="1%" >&nbsp;</TD>
      <TD width="6%">&nbsp;</TD>
      <TD width="2%" >&nbsp;</TD>
      <TD width="1%" >&nbsp;</TD>
      <TD width="6%">&nbsp;</TD>
      <TD width="2%" >&nbsp;</TD>
      <TD width="1%" >&nbsp;</TD>
      <TD width="6%">&nbsp;</TD>
      <TD width="2%" >&nbsp;</TD>
      <TD width="1%" >&nbsp;</TD>
      <TD width="6%">&nbsp;</TD>
      <TD width="2%" >&nbsp;</TD>
      <TD width="1%" >&nbsp;</TD>
      <TD width="6%">&nbsp;</TD>
      <TD width="2%" >&nbsp;</TD>
      <TD width="1%" >&nbsp;</TD>
      <TD width="6%">&nbsp;</TD>
      <TD width="2%" >&nbsp;</TD>
      <TD width="1%" >&nbsp;</TD>
      <TD width="6%">&nbsp;</TD>
      <TD width="2%" >&nbsp;</TD>
      <TD width="1%" >&nbsp;</TD>
      <TD width="6%">&nbsp;</TD>
      <TD width="2%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff ><B>Robert McIntosh</B> </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>2013 </TD>
      <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
      <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>&nbsp;204,000 </TD>
      <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
      <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>&nbsp;-0- </TD>
      <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
      <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>&nbsp;-0- </TD>
      <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
      <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>&nbsp;-0- </TD>
      <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
      <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>&nbsp;-0- </TD>
      <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
      <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>&nbsp;-0- </TD>
      <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
      <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>&nbsp;-0- </TD>
      <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
      <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>&nbsp;204,000 </TD>
      <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR>
      <TD align=left >&nbsp;</TD>
      <TD vAlign=bottom align=center width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=center width="6%" >&nbsp;</TD>
      <TD vAlign=bottom align=center width="2%" >&nbsp;</TD>
      <TD vAlign=bottom align=center width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=center width="6%" >&nbsp;</TD>
      <TD vAlign=bottom align=center width="2%" >&nbsp;</TD>
      <TD vAlign=bottom align=center width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=center width="6%" >&nbsp;</TD>
      <TD vAlign=bottom align=center width="2%" >&nbsp;</TD>
      <TD vAlign=bottom align=center width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=center width="6%" >&nbsp;</TD>
      <TD vAlign=bottom align=center width="2%" >&nbsp;</TD>
      <TD vAlign=bottom align=center width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=center width="6%" >&nbsp;</TD>
      <TD vAlign=bottom align=center width="2%" >&nbsp;</TD>
      <TD vAlign=bottom align=center width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=center width="6%" >&nbsp;</TD>
      <TD vAlign=bottom align=center width="2%" >&nbsp;</TD>
      <TD vAlign=bottom align=center width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=center width="6%" >&nbsp;</TD>
      <TD vAlign=bottom align=center width="2%" >&nbsp;</TD>
      <TD vAlign=bottom align=center width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=center width="6%" >&nbsp;</TD>
      <TD vAlign=bottom align=center width="2%" >&nbsp;</TD>
      <TD vAlign=bottom align=center width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=center width="6%" >&nbsp;</TD>
      <TD vAlign=bottom align=center width="2%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left bgColor=#e6efff
    >&nbsp;&nbsp;&nbsp;&nbsp; Director, President and Chief <BR>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Executive
        Officer </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="6%" bgColor=#e6efff>2012 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%" bgColor=#e6efff>&nbsp;184,500 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%" bgColor=#e6efff>&nbsp;-0- </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%" bgColor=#e6efff>&nbsp;84,000 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%" bgColor=#e6efff>&nbsp;-0- </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%" bgColor=#e6efff>&nbsp;-0- </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%" bgColor=#e6efff>&nbsp;-0- </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%" bgColor=#e6efff>&nbsp;-0- </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%" bgColor=#e6efff>&nbsp;268,500 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    </TR>
  </TABLE>
</DIV>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
  to the business consultant agreement with Mr. McIntosh, dated March 15, 2009, it
  was agreed that Mr. McIntosh would provide us with corporate management
  consulting services for a monthly fee of $17,000. The initial term of the
  agreement is twelve months with automatic renewals on a month-by-month basis
  thereafter. Mr. McIntosh received a total of $204,000 in compensation for the
  fiscal year ended December 31, 2013, of this, no stock issued for services
  rendered. Mr. McIntosh received a total of $268,500 in compensation for the
  fiscal year ended December 31, 2012, of this, $84,000 was stock issued for
  services rendered.</P>
<P align=justify><B>Director Compensation </B></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Our board of directors are reimbursed for actual expenses incurred in attending
  Board meetings. There are no other </P>
<P
align=center>19</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_20></A>
<P align=justify>compensation arrangements with directors, and the directors did
  not receive any other compensation in the fiscal year ending December 31, 2013. </P>
<P align=justify><B>ITEM 12</B> <B>&#151; SECURITY OWNERSHIP OF CERTAIN BENEFICIAL
  OWNERS AND MANAGEMENT</B> <B>AND RELATED STOCKHOLDER MATTERS </B></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  following table sets forth, as of April 25, 2014, the number and percentage of
  outstanding shares of our common stock owned by (i) each person known to us to
  beneficially own more than 5% of our outstanding common stock, (ii) each
  director, (iii) each named executive officer, and (iv) all executive officers
  and directors as a group. Share ownership is deemed to include all shares that
  may be acquired through the exercise or conversion of any other security
  immediately or within sixty days of April 25, 2014. Such shares that may be so
  acquired are also deemed outstanding for purposes of calculating the percentage
  of ownership for that individual or any group of which that individual is a
  member. Unless otherwise indicated, the stockholders listed possess sole voting
  and investment power with respect to the shares shown. </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 align=center width="18%">&nbsp;</TD>
    <TD align=center width="1%"  >&nbsp;</TD>
    <TD align=center width="18%"><B>Amount and Nature</B> </TD>
    <TD align=center width="1%"  >&nbsp;</TD>
    <TD align=center width="18%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="1%"  >&nbsp;</TD>
    <TD align=center width="18%">&nbsp;</TD>
    <TD align=center width="1%"  >&nbsp;</TD>
    <TD align=center width="18%"><B>of Beneficial</B> </TD>
    <TD align=center width="1%"  >&nbsp;</TD>
    <TD align=center width="18%"><B>Percentage of</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center ><B>Name and Address</B> </TD>
    <TD align=left width="1%"  >&nbsp;</TD>
    <TD align=center width="18%">&nbsp;</TD>
    <TD align=center width="1%"  >&nbsp;</TD>
    <TD align=center width="18%"><B>Ownership of</B> </TD>
    <TD align=center width="1%"  >&nbsp;</TD>
    <TD align=center width="18%"><B>Common Stock</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      ><B>of Beneficial Owner</B> </TD>
    <TD align=right width="1%"  >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="18%"><B>Title of Class</B> </TD>
    <TD align=center width="1%"  >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="18%"><B>Common Stock(1)</B> </TD>
    <TD align=center width="1%"  >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="18%"><B>Outstanding(1)</B> </TD>
  </TR>
  <TR>
    <TD >&nbsp;</TD>
    <TD align=right width="1%"  >&nbsp;</TD>
    <TD align=center width="18%">&nbsp;</TD>
    <TD align=center width="1%"  >&nbsp;</TD>
    <TD align=center width="18%">&nbsp;</TD>
    <TD align=center width="1%"  >&nbsp;</TD>
    <TD align=center width="18%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >Robert B. McIntosh <BR>
      17470
      N Pacesetter &#145;Way <BR>
      Scottsdale, AZ 85255 </TD>
    <TD align=right width="1%"  bgColor=#e6efff
      ><BR>
        <BR></TD>
    <TD align=right width="18%" bgColor=#e6efff><BR>
        <BR>
      Common </TD>
    <TD align=right width="1%"  bgColor=#e6efff
      ><BR>
        <BR></TD>
    <TD align=right width="18%" bgColor=#e6efff><BR>
        <BR>
      4,501,844 </TD>
    <TD align=right width="1%"  bgColor=#e6efff
      ><BR>
        <BR></TD>
    <TD align=right width="18%" bgColor=#e6efff><BR>
        <BR>
      3.70% </TD>
  </TR>
  <TR>
    <TD >&nbsp;</TD>
    <TD align=right width="1%"  >&nbsp;</TD>
    <TD align=right width="18%">&nbsp;</TD>
    <TD align=right width="1%"  >&nbsp;</TD>
    <TD align=right width="18%">&nbsp;</TD>
    <TD align=right width="1%"  >&nbsp;</TD>
    <TD align=right width="18%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >All Executive Officers and
      Directors as a Group <BR>
      (1 person) </TD>
    <TD align=right width="1%"  bgColor=#e6efff
    ><BR></TD>
    <TD align=right width="18%" bgColor=#e6efff><BR>
      Common </TD>
    <TD align=right width="1%"  bgColor=#e6efff
    ><BR></TD>
    <TD align=right width="18%" bgColor=#e6efff><BR>
      4,501,844 </TD>
    <TD align=right width="1%"  bgColor=#e6efff
    ><BR></TD>
    <TD align=right width="18%" bgColor=#e6efff><BR>
      3.70% </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%">(1) </TD>
    <TD><P align=justify>Consists of the aggregate total of shares of common stock
      held by the named individual directly. Based upon information furnished to
      us by the directors and executive officers or obtained from our stock
      transfer books showing 121,740,587 shares of common stock outstanding as
      of April 25, 2014. We are informed that these persons hold the sole voting
      and dispositive power with respect to the common stock except as noted
      herein. For purposes of computing &#147;beneficial ownership&#148; and the
      percentage of outstanding common stock held by each person or group of
      persons named above as of April 25, 2014, any security which such person
      or group of persons has the right to acquire within 60 days after such
      date is deemed to be outstanding for the purpose of computing beneficial
      ownership and the percentage ownership of such person or persons, but is
      not deemed to be outstanding for the purpose of computing the percentage
      ownership of any other person.</P></TD>
  </TR>
</TABLE>
<P align=justify><B>Equity Compensation Plan Information </B></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  The company has no active equity compensation plans and there are currently no
  outstanding options from prior plans. </P>
<P align=justify><B>ITEM 13</B> <B>&#151; CERTAIN RELATIONSHIPS AND RELATED
  TRANSACTIONS, AND DIRECTOR INDEPENDENCE </B></P>
<P align=justify><B>Related Party Transactions </B></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
  March 15, 2009 we entered into a business consultant agreement with Robert
  McIntosh, our President, Chief Executive Officer and director, whereby it was
  agreed that Mr. McIntosh will provide us with corporate management consulting
  services for a monthly fee of $17,000. The term of the agreement is twelve
  months and is subject to termination upon 30 days prior written notice by either
  party. Upon expiration of the initial twelve month term, this agreement has
  continued upon a month-by-month basis until further notice. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On January 24, 2012, the Company issued
  400,000 shares of the Company&#146;s Common Stock to Robert McIntosh, 250,000 in lieu
  of executive compensation. </P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
  September 28, 2013, the Company issued 4,101,844 shares of the Company&#146;s Common
  Stock to Robert McIntosh in lieu of payments owed. </P>
<P align=justify><B>Review, Approval or Ratification of Transactions with
  Related Persons </B></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although
  we adopted a Code of Ethical Conduct on July 20, 2009, we still rely on our
  board to review related party transactions on an ongoing basis to prevent
  conflicts of interest. Our board reviews a transaction in light of the
  affiliations of the director, officer or employee and the affiliations of such
  person&#146;s immediate family. Transactions are presented to our board for approval
  before they are entered into or, if this is not possible, for ratification after
  the transaction has occurred. If our board finds that a conflict of interest
  exists, then it will determine the appropriate remedial action, if any. Our
  board approves or ratifies a transaction if it determines that the transaction
  is consistent with the best interests of the Company. For the above
  transactions, the board </P>
<P
align=center>20</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_21></A>
<P align=justify>approved and ratified the transactions, finding it in the best
  interest of the Company. </P>
<P align=justify><B>Director Independence </B></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  During fiscal 2013, we had one independent director on our board, Lonnie McDade.
  Mr. McDade resigned from the board on February 27, 2013. We evaluate
  independence by the standards for director independence established by
  applicable laws, rules, and listing standards including, without limitation, the
  standards for independent directors established by The New York Stock Exchange,
  Inc., The NASDAQ National Market, and the Securities and Exchange Commission. </P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject
  to some exceptions, these standards generally provide that a director will not
  be independent if (a) the director is, or in the past three years has been, an
  employee of ours; (b) a member of the director&#146;s immediate family is, or in the
  past three years has been, an executive officer of ours; (c) the director or a
  member of the director&#146;s immediate family has received more than $120,000 per
  year in direct compensation from us other than for service as a director (or for
  a family member, as a non-executive employee); (d) the director or a member of
  the director&#146;s immediate family is, or in the past three years has been,
  employed in a professional capacity by our independent public accountants, or
  has worked for such firm in any capacity on our audit; (e) the director or a
  member of the director&#146;s immediate family is, or in the past three years has
  been, employed as an executive officer of a company where one of our executive
  officers serves on the compensation committee; or (f) the director or a member
  of the director&#146;s immediate family is an executive officer of a company that
  makes payments to, or receives payments from, us in an amount which, in any
  twelve-month period during the past three years, exceeds the greater of
  $1,000,000 or two percent of that other company&#146;s consolidated gross revenues. </P>
<P align=justify><B>ITEM 14</B> <B>&#151; PRINCIPAL ACCOUNTING FEES AND
  SERVICES</B></P>
<P align=justify>The following table shows the fees paid or accrued by us for
  the audit and other services provided by Samyn &amp; Martin, LLC for the fiscal
  periods shown. </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="17%"><B>December 31, 2012</B> </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="17%"><B>December 31, 2013</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >Audit Fees </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="17%" bgColor=#e6efff>&nbsp;49,600 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="17%" bgColor=#e6efff>&nbsp;55,300 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >Audit &#151; Related Fees </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="17%">0 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="17%">0 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >Tax Fees </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="17%" bgColor=#e6efff>0 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="17%" bgColor=#e6efff>0 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >All Other Fees </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="17%">0 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="17%">0 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >Total </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="17%"
    bgColor=#e6efff>&nbsp;49,600 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="17%"
    bgColor=#e6efff>&nbsp;55,300 </TD>
    <TD align=left width="2%"
  bgColor=#e6efff>&nbsp;</TD>
  </TR>
</TABLE>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Audit
  fees consist of fees billed for professional services rendered for the audit of
  our financial statements and review of the interim financial statements included
  in quarterly reports and services that are normally provided by the above
  auditors in connection with statutory and regulatory fillings or engagements. </P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
  the absence of a formal audit committee, the full Board of Directors
  pre-approves all audit and non-audit services to be performed by the independent
  registered public accounting firm in accordance with the rules and regulations
  promulgated under the Securities Exchange Act of 1934, as amended. The Board of
  Directors pre-approved 100% of the audit and audit-related services performed by
  the independent registered public accounting firm in fiscal 2013. The percentage
  of hours expended on the principal accountant&#146;s engagement to audit the
  Company&#146;s financial statements for the most recent fiscal year that were
  attributed to work performed by persons other than the principal accountant&#146;s
  full-time, permanent employees was 0%. </P>
<P align=center><B>PART IV </B></P>
<P align=justify><B>ITEM 15 &#151; EXHIBITS, FINANCIAL STATEMENT SCHEDULES </B></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>(a)</B> </TD>
    <TD><P align=justify><B>Financial Statements and Financial Statement
      Schedules</B></P></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify>(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Financial Statements are listed in the Index to Financial Statements of
      this report.</P></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width="5%"><B>(b)</B> </TD>
    <TD><P align=justify><B>Exhibits</B></P></TD>
  </TR>
</TABLE>
<p align="center">21</p>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_22></A><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B>Exhibit
      Number </B></TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="83%"
    ><B>Name </B></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="83%" bgColor=#eeeeee ><P align=justify>Articles of Incorporation, as amended </P></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="83%" ><P align=justify>&nbsp;</P></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="83%" 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="83%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee>10.1(3) </TD>
    <TD align=left width="2%"  bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left width="83%" bgColor=#eeeeee ><P align=justify>Management and Governance Consultant Agreement with
      Robert McIntosh, effective March 15, 2009 </P></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="83%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee>10.2(4) </TD>
    <TD align=left width="2%"  bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left width="83%" bgColor=#eeeeee ><P align=justify>Note Purchase Agreement with John E. Friesen, dated
      August 13, 2009 </P></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="83%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee>10.3(5) </TD>
    <TD align=left width="2%"  bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left width="83%" bgColor=#eeeeee ><P align=justify>Secured Convertible Promissory Note with John E. Friesen,
      dated September 15, 2009 </P></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="83%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee>10.4(6) </TD>
    <TD align=left width="2%"  bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left width="83%" bgColor=#eeeeee ><P align=justify>Operating Agreement with Bay Petroleum Corp., dated April
      21, 2010 </P></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="83%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee>10.5(7) </TD>
    <TD align=left width="2%"  bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left width="83%" bgColor=#eeeeee ><P align=justify>Debenture and Warrant Purchase Agreement with Maxum
      Overseas Fund, dated May 17, 2010 </P></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="83%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee>10.6(7) </TD>
    <TD align=left width="2%"  bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left width="83%" bgColor=#eeeeee ><P align=justify>Form of Warrant to Purchase Common Stock with Maxum
      Overseas Fund </P></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="83%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee>10.7(8) </TD>
    <TD align=left width="2%"  bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left width="83%" bgColor=#eeeeee ><P align=justify>Amended and Restated Convertible Debenture with Maxum
      Overseas Fund, dated May 4, 2011 </P></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="83%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee>10.8(9) </TD>
    <TD align=left width="2%"  bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left width="83%" bgColor=#eeeeee ><P align=justify>Amendment to Amended and Restated Convertible Debenture
      with Maxum Overseas Fund, dated July 18, 2011 </P></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="83%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee>10.9(10) </TD>
    <TD align=left width="2%"  bgColor=#eeeeee></TD>
    <TD align=left width="83%" bgColor=#eeeeee ><P align=justify>Second Amendment to Amended and Restated Convertible
      Debenture with Maxum Overseas Fund, dated August 12, 2011 </P></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="83%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee>10.10(11) </TD>
    <TD align=left width="2%"  bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left width="83%" bgColor=#eeeeee ><P align=justify>Second Amendment to Promissory Notes with John E.
      Friesen, dated August 13, 2011 </P></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="83%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee>10.11(12) </TD>
    <TD align=left width="2%"  bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left width="83%" bgColor=#eeeeee ><P align=justify>Form of Accounts Payable Agreement </P></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="83%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee>10.12(13) </TD>
    <TD align=left width="2%"  bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left width="83%" bgColor=#eeeeee ><P align=justify>Third Amendment to Promissory Notes with John E. Friesen,
      dated July 3, 2012 </P></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="83%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee>10.13(13) </TD>
    <TD align=left width="2%"  bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left width="83%" bgColor=#eeeeee ><P align=justify>Purchase Agreement with ASYM Energy Opportunities LLC,
      dated July 3, 2012 </P></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="83%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee>10.14(13) </TD>
    <TD align=left width="2%"  bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left width="83%" bgColor=#eeeeee ><P align=justify>Form of Warrant to Purchase Common Stock with ASYM Energy
      Opportunities LLC </P></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="83%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee>10.15(13) </TD>
    <TD align=left width="2%"  bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left width="83%" bgColor=#eeeeee ><P align=justify>Form of Senior Secured Promissory Note with ASYM Energy
      Opportunities LLC </P></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="83%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee>10.16(13) </TD>
    <TD align=left width="2%"  bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left width="83%" bgColor=#eeeeee ><P align=justify>First Lien Security Agreement with ASYM Energy
      Opportunities LLC, dated July 3, 2012 </P></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="83%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee>10.17(13) </TD>
    <TD align=left width="2%"  bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left width="83%" bgColor=#eeeeee ><P align=justify>Management Services Agreement with ASYM Management LLC,
      dated July 3, 2012 </P></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="83%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee>10.18(13) </TD>
    <TD align=left width="2%"  bgColor=#eeeeee></TD>
    <TD align=left width="83%" bgColor=#eeeeee ><P align=justify>Mortgage, Deed of Trust, Assignment of Production,
      Security Agreement, Fixture Filing and Financing Statement with ASYM
      Energy Opportunities LLC, dated July 3, 2012 </P></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="83%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee>10.19(13) </TD>
    <TD align=left width="2%"  bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left width="83%" bgColor=#eeeeee ><P align=justify>Deposit Account Control (Default) Agreement with ASYM
      Energy Opportunities LLC, dated July 3, 2012 </P></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="83%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee>10.20(14) </TD>
    <TD align=left width="2%"  bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left width="83%" bgColor=#eeeeee ><P align=justify>Common Stock Purchase Agreement with Hanover Holdings I,
      LLC, dated March 22, 2013 </P></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="83%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee>10.21(14) </TD>
    <TD align=left width="2%"  bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left width="83%" bgColor=#eeeeee ><P align=justify>Registration Rights Agreement with Hanover Holdings I,
      LLC, dated March 22, 2013 </P></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="83%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee>10.22(15) </TD>
    <TD align=left width="2%"  bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left width="83%" bgColor=#eeeeee ><P align=justify>Twelve Percent (12%) Convertible Note with Magna Group,
      LLC, dated March 4, 2013 </P></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="83%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee><a href="exhibit10-23.htm">10.23 </a></TD>
    <TD align=left width="2%"  bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left width="83%" bgColor=#eeeeee ><P align=justify><a href="exhibit10-23.htm">Purchase and Sale Agreement with Roberson Oil Company, Inc.</a></P></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="83%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee><a href="exhibit21-1.htm">21 </a></TD>
    <TD align=left width="2%"  bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left width="83%" bgColor=#eeeeee ><P align=justify><a href="exhibit21-1.htm">List of Subsidiaries </a></P></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="83%" ><P align=justify>&nbsp;</P></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="83%" bgColor=#eeeeee ><P align=justify><a href="exhibit31-1.htm">Rule 13(a) &#151; 14(a)/15(d) &#151; 14(a) Certification </a></P></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="83%" ><P align=justify>&nbsp;</P></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="83%" bgColor=#eeeeee ><P align=justify><a href="exhibit32-1.htm">Section 1350 Certifications </a></P></TD>
  </TR>
</TABLE>
<p align="center">22</p>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name="page_23"></A>
<P align="justify"> <B>Footnotes to Exhibits Index</B></P>
<TABLE BCLLIST style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD width=5% valign=top> (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>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width=5% valign=top> (2) </TD>
    <TD><P align="justify">Incorporated by reference to the Form 10-SB12G filed June 19, 1997.</P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width=5% valign=top> (3) </TD>
    <TD><P align="justify">Incorporated by reference to the Current Report on Form 8-K filed March 27, 2009.</P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width=5% valign=top> (4) </TD>
    <TD><P align="justify">Incorporated by reference to the Quarterly Report on Form 10-Q filed August 13, 2009.</P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width=5% valign=top> (5) </TD>
    <TD><P align="justify">Incorporated by reference to the Current Report on Form 8-K filed September 24, 2009.</P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width=5% valign=top> (6) </TD>
    <TD><P align="justify">Incorporated by reference to the Current Report on Form 8-K filed April 23, 2010.</P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width=5% valign=top> (7) </TD>
    <TD><P align="justify">Incorporated by reference to the Current Report on Form 8-K filed May 20, 2010.</P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width=5% valign=top> (8) </TD>
    <TD><P align="justify">Incorporated by reference to the Current Report on Form 8-K filed May 10, 2011.</P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width=5% valign=top> (9) </TD>
    <TD><P align="justify">Incorporated by reference to the Current Report on Form 8-K filed July 19, 2011.</P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width=5% valign=top> (10) </TD>
    <TD><P align="justify">Incorporated by reference to the Quarterly Report on Form 10-Q filed August 12, 2011.</P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width=5% valign=top> (11) </TD>
    <TD><P align="justify">Incorporated by reference to the Current Report on Form 8-K filed August 16, 2011.</P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width=5% valign=top> (12) </TD>
    <TD><P align="justify">Incorporated by reference to the Quarterly Report on Form 10-Q filed August 14, 2012.</P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width=5% valign=top> (13) </TD>
    <TD><P align="justify">Incorporated by reference to the Current Report on Form 8-K filed July 9, 2012.</P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width=5% valign=top> (14) </TD>
    <TD><P align="justify">Incorporated by reference to the Current Report on Form 8-K filed March 25, 2013.</P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width=5% valign=top> (15) </TD>
    <TD><P align="justify">Incorporated by reference to the Annual Report on Form 10-K filed April 15, 2013.</P></TD>
  </TR>
</TABLE>
<p align="center">23<BR>
</p>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name=page_24></A>
<P align=center><B>SIGNATURES </B></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
  to the requirements of Section 13 or 15(d) of the Securities Exchange Act of
  1934, the registrant has duly caused this report to be signed on its behalf by
  the undersigned, thereunto duly authorized. </P>
<P align=justify><B>AMERICAN PETRO-HUNTER INC.</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>Dated: April 30, 2014 </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%">By: Robert B. McIntosh </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="50%">Its: President and Chief Executive Officer </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="50%">(Principal Executive Officer) </TD>
  </TR>
</TABLE>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
  to requirements of the Securities Exchange Act of 1934, this report has been
  signed below by the following persons on behalf of the registrant and in the
  capacities and on the dates indicated: </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>Signature</B> </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="45%"
    ><B>Capacity</B> </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="15%"
    ><B>Date</B> </TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="2%"  >&nbsp;</TD>
    <TD width="45%" >&nbsp;</TD>
    <TD width="2%"  >&nbsp;</TD>
    <TD width="15%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="45%" >President, Chief Executive
      Officer, Chief Financial Officer, and </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="15%" >April 30, 2014 </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><I>/s/ Robert B.
      McIntosh</I> </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="45%" >Director </TD>
    <TD align=left width="2%"  >&nbsp;</TD>
    <TD align=left width="15%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Robert B. McIntosh </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="45%" >(Principal Executive Officer,
      Principal Financial Officer and </TD>
    <TD align=left width="2%"  >&nbsp;</TD>
    <TD align=left width="15%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="45%" >Principal Accounting Officer) </TD>
    <TD align=left width="2%"  >&nbsp;</TD>
    <TD align=left width="15%" >&nbsp;</TD>
  </TR>
</TABLE>
<p align="center">24</p>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_25></A>
<P align=justify>To the Board of Directors and Stockholders <BR>
  American
  Petro-Hunter, Inc. <BR>
  Wichita, Kansas <BR>
</P>
<P align=center>REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM </P>
<P align=justify>We have audited the accompanying balance sheet of American
  Petro-Hunter, Inc. as of December 31, 2013 and 2012 and the related statements
  of operations, stockholders&#146; equity (deficit), and cash flows for the years then
  ended. American Petro-Hunter, Inc.&#146;s management is responsible for these
  financial statements. Our responsibility is to express an opinion on these
  financial statements based on our audit.</P>
<P align=justify>We conducted our audit in accordance with the standards of the
  Public Company Accounting Oversight Board (United States). Those standards
  require that we plan and perform the audit to obtain reasonable assurance about
  whether the financial statements are free of material misstatement. The Company
  is not required to have, nor were we engaged to perform, an audit of its
  internal control over financial reporting. Our audit included consideration of
  internal control over financial reporting as a basis for designing audit
  procedures that are appropriate in the circumstances, but not for the purpose of
  expressing an opinion on the effectiveness of the Company&#146;s internal control
  over financial reporting. Accordingly, we express no such opinion. Our audit of
  the financial statements includes examining, on a test basis, evidence
  supporting the amounts and disclosures in the financial statements, assessing
  the accounting principles used and significant estimates made by management, and
  evaluating the overall financial statement presentation. We believe that our
  audit provides a reasonable basis for our opinion. </P>
<P align=justify>In our opinion, the financial statements referred to above
  present fairly, in all material respects, the financial position of American
  Petro-Hunter, Inc. as of December 31, 2013 and 2012 and the results of its
  operations, stockholders&#146; equity (deficit), and cash flows for the years then
  ended in conformity with accounting principles generally accepted in the United
  States of America. </P>
<P align=justify>The accompanying financial statements have been prepared
  assuming that the Company will continue as a going concern. As discussed in Note
  1 to the financial statements, the Company has suffered recurring losses from
  operations and is dependent upon the continued sale of its securities or
  obtaining debt financing for funds to meet its cash requirements. These factors
  raise substantial doubt about the Company&#146;s ability to continue as a going
  concern. The financial statements do not include any adjustments that might
  result from the outcome of this uncertainty. </P>
<P align=justify>&nbsp;</P>
<P align=justify>Samyn &amp; Martin, LLC <BR>
  Kansas City, Missouri <BR>
  April
  30, 2014 <BR>
</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=-->
<A name=page_F-1></A>
<P align=center><B>American Petro-Hunter, Inc.<BR>
</B><B>Balance Sheets</B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD vAlign=bottom align=left>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=center width="12%">December 31, </TD>
    <TD vAlign=bottom align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=center width="12%">December 31, </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=center
    width="12%">2013 </TD>
    <TD vAlign=bottom align=center width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=center
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=center
    width="12%">2012 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff><p style="text-indent: -15pt; margin-left: 15pt"><B>Assets</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 vAlign=top>
    <TD vAlign=bottom align=left><p style="text-indent: -15pt; margin-left: 15pt">Current assets: </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="12%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="12%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff><p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp;Cash </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>&nbsp;15,793 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>&nbsp;16,216 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left><p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp;Accounts receivable </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%">13,792 </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%">13,735 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff><p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;Total current assets </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>29,585 </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>29,951 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=bottom><p style="text-indent: -15pt; margin-left: 15pt">&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 vAlign=bottom align=left bgColor=#e6efff><p style="text-indent: -15pt; margin-left: 15pt">Investments in mineral
      properties, net of accumulated amortization of $185,457 and $132,499,
      respectively </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>400,000 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>1,582,324 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left><p style="text-indent: -15pt; margin-left: 15pt">Capitalized financing costs, net of
      amortization of $63,215 and $6,737, respectively </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%">146,861 </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%">41,263 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=bottom bgColor=#e6efff><p style="text-indent: -15pt; margin-left: 15pt">&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 vAlign=bottom align=left><p style="text-indent: -15pt; margin-left: 15pt">Total assets </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;576,446 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%">$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="12%">&nbsp;1,653,538 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=bottom bgColor=#e6efff><p style="text-indent: -15pt; margin-left: 15pt">&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 vAlign=bottom align=left><p style="text-indent: -15pt; margin-left: 15pt"><B>Liabilities and Stockholders' Equity
      (Deficit)</B> </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="12%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="12%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=bottom bgColor=#e6efff><p style="text-indent: -15pt; margin-left: 15pt">&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 vAlign=bottom align=left><p style="text-indent: -15pt; margin-left: 15pt">Current liabilities: </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="12%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="12%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff><p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp;Accounts payable
      and other liabilities </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>&nbsp;885,746 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>&nbsp;568,188 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left><p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp;Short term note from officer </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%">39,200 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff><p style="text-indent: -15pt; margin-left: 15pt">&nbsp;&nbsp;&nbsp;Notes
      payable, net of discount of $291,586 and $0 as of December 31, 2013 and
      2012, respectively </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>1,014,722 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left><p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp;Accrued interest </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%">169,030 </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%">41,073 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff><p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;Total current liabilities </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="12%" bgColor=#e6efff>2,069,498 </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>648,461 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=bottom><p style="text-indent: -15pt; margin-left: 15pt">&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 vAlign=bottom align=left bgColor=#e6efff><p style="text-indent: -15pt; margin-left: 15pt">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 vAlign=bottom align=left><p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp;Note payable, net of discount of
      $0 and $178,471 as of </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="12%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="12%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff><p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;December 31, 2013 and 2012, 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>- </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>992,835 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left><p style="text-indent: -15pt; margin-left: 15pt">&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%">- </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 vAlign=bottom align=left bgColor=#e6efff><p style="text-indent: -15pt; margin-left: 15pt">Total liabilities </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>2,069,498 </TD>
    <TD vAlign=bottom align=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 vAlign=bottom><p style="text-indent: -15pt; margin-left: 15pt">&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 vAlign=bottom align=left bgColor=#e6efff><p style="text-indent: -15pt; margin-left: 15pt">Stockholders' equity
      (deficit): </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 vAlign=bottom align=left><p style="text-indent: -15pt; margin-left: 15pt">Common stock, $0.001 par value, 200,000,000
      shares authorized, 101,325,435 and 47,620,406 shares issued and
      outstanding as of December 31, 2013 and 2012, respectively </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">101,326 </TD>
    <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 vAlign=bottom align=left bgColor=#e6efff><p style="text-indent: -15pt; margin-left: 15pt">Common stock to be issued;
      14,480,278 and 6,423,708 shares as of December 31, 2013 and 2012,
      respectively </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>14,480 </TD>
    <TD vAlign=bottom align=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 vAlign=bottom align=left><p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp;Additional paid-in capital </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">14,835,983 </TD>
    <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 vAlign=bottom align=left bgColor=#e6efff><p style="text-indent: -15pt; margin-left: 15pt">&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>- </TD>
    <TD vAlign=bottom align=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>4,706 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left><p style="text-indent: -15pt; margin-left: 15pt">&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%">(16,444,841</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 vAlign=bottom align=left bgColor=#e6efff><p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;Total stockholders' equity (deficit) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="12%" bgColor=#e6efff>(1,493,052</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 vAlign=bottom><p style="text-indent: -15pt; margin-left: 15pt">&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 vAlign=bottom align=left bgColor=#e6efff><p style="text-indent: -15pt; margin-left: 15pt">Total liabilities and
      stockholders' equity (deficit) </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;576,446 </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 financial
  statements</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=-->
<A name=page_F-2></A>
<P align=center><B>American Petro-Hunter, Inc.<BR>
  </B><B>Statements of
    Operations</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 align=center width="27%" colSpan=4>For the year ended </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="27%" colSpan=4>December 31, </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=center
    width="12%">2013 </TD>
    <TD vAlign=bottom align=center width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=center
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=center
    width="12%">2012 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=bottom>&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=bottom>&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff>Revenue </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="12%" bgColor=#e6efff>&nbsp;141,221 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="12%" bgColor=#e6efff>&nbsp;308,770 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=bottom>&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom 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>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom 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%">122,529 </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%">193,674 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=bottom bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="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 vAlign=bottom 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%">18,692 </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%">115,096 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=bottom bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="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 vAlign=bottom align=left>General and administrative </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">570,759 </TD>
    <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%">575,783 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom 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>204,000 </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>481,000 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom 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%">1,172,547 </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%">565,737 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom 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>1,947,306 </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>1,622,520 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=bottom>&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom 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>(1,928,614</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>(1,507,424</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>) </TD>
  </TR>
  <TR>
    <TD vAlign=bottom>&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="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 vAlign=bottom 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>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left>Gain (loss) on sale of mineral properties </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">2,621 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff>Gain on forgiveness of debt </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>322,731 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left>Gain (loss) on derivative liability </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%">(5,265</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom 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>(738,621</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>(2,115,799</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom 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%">(738,621</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%">(1,795,712</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
  </TR>
  <TR>
    <TD vAlign=bottom bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="12%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="12%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left>Net loss before income taxes </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">(2,667,235</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%">(3,303,136</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
  </TR>
  <TR>
    <TD vAlign=bottom bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="12%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="12%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom 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>
  </TR>
  <TR>
    <TD vAlign=bottom bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="12%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="12%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left>Net loss </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">(2,667,235</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%">(3,303,136</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
  </TR>
  <TR>
    <TD vAlign=bottom bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="12%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="12%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom 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%">(4,706</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 vAlign=bottom bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="12%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="12%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left>Comprehensive loss </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="12%">&nbsp;(2,671,941</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="12%">&nbsp;(3,295,022</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
  </TR>
  <TR>
    <TD vAlign=bottom bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="12%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="12%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left>Weighted average common shares </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="12%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="12%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#FFFFFF>&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;outstanding - basic and fully diluted </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#FFFFFF>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="12%" bgColor=#FFFFFF>63,202,455 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#FFFFFF>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#FFFFFF>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="12%" bgColor=#FFFFFF>44,476,603 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#FFFFFF>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=bottom bgcolor="#E6EFFF">&nbsp;</TD>
    <TD vAlign=bottom width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom width="12%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD vAlign=bottom width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom width="12%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD vAlign=bottom width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#FFFFFF>Net loss per common share </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#FFFFFF>&nbsp;</TD>
    <TD vAlign=bottom align=left width="12%" bgColor=#FFFFFF>&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#FFFFFF>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#FFFFFF>&nbsp;</TD>
    <TD vAlign=bottom align=left width="12%" bgColor=#FFFFFF>&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#FFFFFF>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgcolor="#FFFFFF">&nbsp; &nbsp; &nbsp; &nbsp;basic and fully
      diluted </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" bgcolor="#FFFFFF" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="12%" bgcolor="#FFFFFF">&nbsp;(0.04</TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#FFFFFF" >) </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" bgcolor="#FFFFFF" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="12%" bgcolor="#FFFFFF">&nbsp;(0.07</TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#FFFFFF" >) </TD>
  </TR>
</TABLE>
<P align=justify>The accompanying notes are an integral part of these financial
  statements</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=-->
<A name=page_F-3></A>
<P align=center><B>Amerian Petro-Hunter, Inc. <BR>
  </B><B>Statement of
    Stockholder's Equity (Deficit)</B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD vAlign=bottom align=left>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="8%">&nbsp;</TD>
    <TD vAlign=bottom align=center width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="8%">&nbsp;</TD>
    <TD vAlign=bottom align=center width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="8%">&nbsp;</TD>
    <TD vAlign=bottom align=center width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="8%">&nbsp;</TD>
    <TD vAlign=bottom align=center width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="8%">&nbsp;</TD>
    <TD vAlign=bottom align=center width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="8%">&nbsp;</TD>
    <TD vAlign=bottom align=center width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="8%">Total </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=center
    width="19%" colSpan=4>Common Stock </TD>
    <TD vAlign=bottom align=center width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="8%">Additional </TD>
    <TD vAlign=bottom align=center width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="8%">Stock </TD>
    <TD vAlign=bottom align=center width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="8%">&nbsp;</TD>
    <TD vAlign=bottom align=center width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="8%">Accumulated </TD>
    <TD vAlign=bottom align=center width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="8%">Stockholder's </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="8%">&nbsp;</TD>
    <TD vAlign=bottom align=center width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="8%">&nbsp;</TD>
    <TD vAlign=bottom align=center width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="8%">Paid-in </TD>
    <TD vAlign=bottom align=center width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="8%">owed but </TD>
    <TD vAlign=bottom align=center width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="8%">Accumulated </TD>
    <TD vAlign=bottom align=center width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="8%">Comprehensive </TD>
    <TD vAlign=bottom align=center width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="8%">Equity </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=center
    width="8%">Shares </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=center
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=center
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=center
    width="8%">Amount </TD>
    <TD vAlign=bottom align=center width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=center
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=center
    width="8%">Capital </TD>
    <TD vAlign=bottom align=center width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="8%">not issued </TD>
    <TD vAlign=bottom align=center width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=center
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=center
    width="8%">Deficit </TD>
    <TD vAlign=bottom align=center width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=center
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=center
    width="8%">(Loss) </TD>
    <TD vAlign=bottom align=center width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=center
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=center
    width="8%">(deficit) </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=bottom>&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff><p style="text-indent: -15pt; margin-left: 15pt">Balance at December 31, 2011
    </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>32,867,028 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>32,867 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>8,313,575 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>(10,474,470</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>(8,114</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>(2,136,142</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>) </TD>
  </TR>
  <TR>
    <TD vAlign=bottom><p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff><p style="text-indent: -15pt; margin-left: 15pt">&nbsp;Shares issued for
      compensation </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>900,000 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>900 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>188,100 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>189,000 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left><p style="text-indent: -15pt; margin-left: 15pt">&nbsp;Shares issued in exchange for accts
      pay. </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">350,000 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">350 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">238,702 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">417 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">239,469 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff><p style="text-indent: -15pt; margin-left: 15pt">&nbsp;Convertible debenture
      converted to stock </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>12,652,869 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>12,653 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>3,150,565 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>3,163,218 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left><p style="text-indent: -15pt; margin-left: 15pt">&nbsp;Shares issued in exchange for notes
      pay. </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">850,509 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">851 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">211,777 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">212,628 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff><p style="text-indent: -15pt; margin-left: 15pt">&nbsp;Shares owed for
      financing agreement </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>1,628,378 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>6,007 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>4,706 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>1,639,091 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left><p style="text-indent: -15pt; margin-left: 15pt">&nbsp;Net Loss for the year </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%">(3,303,136</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="8%">8,114 </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="8%">(3,295,022</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
  </TR>
  <TR>
    <TD vAlign=bottom bgColor=#e6efff><p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="8%" 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="8%" 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="8%" 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="8%" 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="8%" 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="8%" 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="8%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left><p style="text-indent: -15pt; margin-left: 15pt">Balance at December 31, 2012 </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">47,620,406 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">47,621 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">13,731,097 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">6,424 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">(13,777,606</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">4,706 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">12,242 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=bottom bgColor=#e6efff><p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="8%" 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="8%" 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="8%" 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="8%" 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="8%" 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="8%" 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="8%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left><p style="text-indent: -15pt; margin-left: 15pt">&nbsp;Shares issued for cash </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">3,375,897 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">3,376 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">56,902 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">60,278 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff><p style="text-indent: -15pt; margin-left: 15pt">&nbsp;Shares issued in
      exchange for accts payable </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>2,498,995 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>2,499 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>39,049 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>41,548 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left><p style="text-indent: -15pt; margin-left: 15pt">&nbsp;Shares issued in exchange for accr.
      interest </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">373,764 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">374 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">2,080 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">2,454 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff><p style="text-indent: -15pt; margin-left: 15pt">&nbsp;Shares issued in
      exchange for notes payable </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>45,308,667 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>45,309 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>291,531 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>336,840 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left><p style="text-indent: -15pt; margin-left: 15pt">&nbsp;Shares issued for capitalized financing
      costs </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">1,764,706 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">1,765 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">148,235 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">150,000 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff><p style="text-indent: -15pt; margin-left: 15pt">&nbsp;Shares issued that was
      owed from prior periods </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>383,000 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>383 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>(383</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left><p style="text-indent: -15pt; margin-left: 15pt">&nbsp;Shares owed for financing agreement </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">86,611 </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="8%">8,439 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">95,050 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff><p style="text-indent: -15pt; margin-left: 15pt">&nbsp;Discounts issued on
      notes payables </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>480,477 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>480,477 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left><p style="text-indent: -15pt; margin-left: 15pt">&nbsp;Net Loss for the year </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%">(2,667,235</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="8%">(4,706</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="8%">(2,671,941</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
  </TR>
  <TR>
    <TD vAlign=bottom bgColor=#e6efff><p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="8%" 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="8%" 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="8%" 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="8%" 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="8%" 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="8%" 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="8%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left><p style="text-indent: -15pt; margin-left: 15pt">Balance at December 31, 2013 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="8%">101,325,435 </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="8%">101,326 </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="8%">14,835,983 </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="8%">14,480 </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="8%">(16,444,841</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="8%">- </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="8%">(1,493,052</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
  </TR>
</TABLE>
<P align=justify>The accompanying notes are an integral part of these financial
  statements</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=-->
<A name=page_F-4></A>
<P align=center><B>American Petro-Hunter, Inc. <BR>
  </B><B>Statement of Cash
    Flows</B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD vAlign=bottom align=left>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=center width="12%">December 31, </TD>
    <TD vAlign=bottom align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=center width="12%">December 31, </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=center
    width="12%">2013 </TD>
    <TD vAlign=bottom align=center width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=center
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=center
    width="12%">2012 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff><p style="text-indent: -15pt; margin-left: 15pt"><B>Cash flows from operating
      activities</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 vAlign=top>
    <TD vAlign=bottom align=left><p style="text-indent: -15pt; margin-left: 15pt">Net (loss) </TD>
    <TD vAlign=bottom align=left width="1%">$</TD>
    <TD vAlign=bottom align=right width="12%">&nbsp;(2,667,235</TD>
    <TD vAlign=bottom align=left width="2%">) </TD>
    <TD vAlign=bottom align=left width="1%">$</TD>
    <TD vAlign=bottom align=right width="12%">&nbsp;(3,303,136</TD>
    <TD vAlign=bottom align=left width="2%">) </TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff><p style="text-indent: -15pt; margin-left: 15pt">Adjustments to reconcile net
      (loss) to net cash used in operating activities: </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 vAlign=bottom align=left><p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;Shares issued for compensation </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%"><B>-</B> </TD>
    <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%">189,000 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff><p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp;Amortization of discount </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>367,127 </TD>
    <TD vAlign=bottom align=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>243,590 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left><p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;Impairment expense </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">1,172,547 </TD>
    <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%">565,737 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff><p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp;Amortization of mineral properties </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>52,957 </TD>
    <TD vAlign=bottom align=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>105,880 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left><p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;Amortization of prepaid financing costs </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">56,477 </TD>
    <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%">6,737 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff><p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp;Recognized (gain) loss on fair value of derivative liability
    </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>5,265 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left><p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;Stock and warrants issued for financing </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">95,050 </TD>
    <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%">1,424,394 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff><p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp;Gain on forgiveness of debt </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>(322,731</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left><p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Gain
      on sale of mineral properties </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">(2,621</TD>
    <TD vAlign=bottom align=left width="2%">) </TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff><p style="text-indent: -15pt; margin-left: 15pt">Changes in operating assets
      and 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 vAlign=bottom align=left><p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp; &nbsp;(Increase) decrease in
      accounts receivable </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">(58</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%">32,682 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff><p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp;
      &nbsp;(Increase) decrease in prepaid expenses </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff><B>-</B> </TD>
    <TD vAlign=bottom align=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>48,518 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left><p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp; &nbsp;Increase (decrease) in
      accounts payable and accrued liabilities </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">354,637 </TD>
    <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%">395,313 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff><p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp; &nbsp;Increase
      (decrease) in accrued interest </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>130,411 </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>183,521 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left><p style="text-indent: -15pt; margin-left: 15pt">Net cash used by operating activities </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%">(438,087</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%">(427,851</TD>
    <TD vAlign=bottom align=left width="2%">) </TD>
  </TR>
  <TR>
    <TD vAlign=bottom bgColor=#e6efff><p style="text-indent: -15pt; margin-left: 15pt">&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 vAlign=bottom align=left><p style="text-indent: -15pt; margin-left: 15pt"><B>Cash flows from investing activities</B> </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="12%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="12%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff><p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp;Proceeds from
      sale of mineral properties </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>69,500 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left><p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp;Acquisition of mineral
      properties </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%">(43,180</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%">(355,242</TD>
    <TD vAlign=bottom align=left width="2%">) </TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff><p style="text-indent: -15pt; margin-left: 15pt">Net cash used by investing
      activities </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>(43,180</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>(285,742</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD>
  </TR>
  <TR>
    <TD vAlign=bottom><p style="text-indent: -15pt; margin-left: 15pt">&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 vAlign=bottom align=left bgColor=#e6efff><p style="text-indent: -15pt; margin-left: 15pt"><B>Cash flows from financing
      activities</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 vAlign=top>
    <TD vAlign=bottom align=left><p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp;Short-term note from officer </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%"><B>-</B> </TD>
    <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%">39,200 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff><p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp;Proceeds from
      sale of common stock </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>60,278 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left><p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp;Proceeds from notes payable </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="12%">420,566 </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%">688,000 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff><p style="text-indent: -15pt; margin-left: 15pt">Net cash provided by
      financing activities </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>480,844 </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>727,200 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=bottom><p style="text-indent: -15pt; margin-left: 15pt">&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 vAlign=bottom align=left bgColor=#e6efff><p style="text-indent: -15pt; margin-left: 15pt">Net increase (decrease) in
      cash </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>(423</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>13,607 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left><p style="text-indent: -15pt; margin-left: 15pt">Cash - beginning </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%">16,216 </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%">2,609 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff><p style="text-indent: -15pt; margin-left: 15pt">Cash - ending </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="12%" bgColor=#e6efff>&nbsp;15,793 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="12%" bgColor=#e6efff>&nbsp;16,216 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=bottom><p style="text-indent: -15pt; margin-left: 15pt">&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 vAlign=bottom align=left bgColor=#e6efff><p style="text-indent: -15pt; margin-left: 15pt">Supplemental disclosures: </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 vAlign=bottom align=left><p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp;Interest paid </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%">$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="12%">&nbsp;77,973 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%">$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="12%">&nbsp;117,391 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff><p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp;Income taxes
      paid </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="12%" bgColor=#e6efff>&nbsp;- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="12%" bgColor=#e6efff>&nbsp;- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=bottom><p style="text-indent: -15pt; margin-left: 15pt">&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 vAlign=bottom align=left bgColor=#e6efff><p style="text-indent: -15pt; margin-left: 15pt">Non-cash transactions: </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 vAlign=bottom align=left><p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp;Shares issued for compensation
    </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%">$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="12%">&nbsp;- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%">$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="12%">&nbsp;189,000 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff><p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp;Shares issued
      for capitalized financing costs </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="12%" bgColor=#e6efff>&nbsp;150,000 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="12%" bgColor=#e6efff>&nbsp;- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left><p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp;Accounts payable converted to
      stock </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%">$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="12%">&nbsp;41,548 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%">$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="12%">&nbsp;239,469 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff><p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp;Note payable and
      accrued interest converted to stock </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="12%" bgColor=#e6efff>&nbsp;339,294 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="12%" bgColor=#e6efff>&nbsp;3,375,846 </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 financial
  statements</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=-->
<A name=page_F-1></A>
<P align=center><B>American Petro-Hunter Inc. <BR>
  Notes to Financial Statements <BR>
  December 31, 2013 </B></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%">&nbsp;</TD>
    <TD>&nbsp;</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>In the 1<SUP>st </SUP>quarter of 2014, the Company sold
      all of its mineral properties and will no longer have oil and gas revenue
      (see footnote 11 for further details). The Company intends to proceed with
      a new strategy, which is to build a holding company focused on energy and
      real estate investments. It will seek to develop, acquire and operate hard
      assets that it expect will provide attractive and tax efficient cash flow
      as well as future price appreciation. The Company is currently in
      negotiations to acquire an accommodation facility that services utility
      and oil service companies operating in the Eagleford region of Texas. In
      addition to real estate assets, the Company intends to acquire, explore
      for, develop and produce crude oil and natural gas properties located in
      the U.S. directly and through retail distribution network.</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%">&nbsp;</TD>
    <TD>&nbsp;</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 an
      accumulated deficit of $16,444,841 as of December 31, 2013 and has current
      liabilities that are $2,069,498 which is $2,039,913 in excess of its
      current assets. 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%">&nbsp;</TD>
    <TD>&nbsp;</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%">&nbsp;</TD>
    <TD>&nbsp;</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>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify><B>Revenue Recognition</B></P></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify>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></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify><B>Use of estimates</B></P></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify>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></TD>
  </TR>
</TABLE>
<BR>
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<P align=justify style="margin-left: 5%"><B>Cash Equivalents </B></P>
<P align=justify style="margin-left: 5%">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 align=justify style="margin-left: 5%"><B>Net loss per share </B></P>
<P align=justify style="margin-left: 5%">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 years ended December 31,
  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 align=justify style="margin-left: 5%"><B>Financial instruments </B></P>
<P align=justify style="margin-left: 5%">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 align=justify style="margin-left: 5%"><B>Fair Value of Financial Instruments </B></P>
<P align=justify style="margin-left: 5%">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 December 31, 2013 and 2012, due to their short-term nature. See
  Note 5 for further details. </P>
<P align=justify style="margin-left: 5%"><B>Reclassifications </B></P>
<P align=justify style="margin-left: 5%">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
  accumulated deficits. </P>
<P align=justify style="margin-left: 5%"><B>Oil and Gas Properties</B></P>
<P align=justify style="margin-left: 5%">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 align=justify style="margin-left: 5%">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 align=justify style="margin-left: 5%">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>
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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 vAlign=top width="5%"><B>3.</B> </TD>
    <TD><P align=justify><B>Recent Accounting Pronouncements</B></P></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</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%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify>During the year ended December 31, 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 during the
      3<SUP>rd </SUP>quarter of 2013 and recognized an impairment expense in the
      amount of $1,172,547 to bring the mineral properties carrying value in
      line with their fair market value at that time. Management reviewed the
      carrying amount of the Company&#146;s investments in its oil and gas properties
      at the balance sheet date and recognized no further impairment as of
      December 31, 2013 and $565,737 of impairment expense as of December 31,
      2012. As of December 31, 2013 and 2012, the estimated fair value of
      mineral properties totaled $400,000 and $1,582,324, net of accumulated
      amortization of $185,457 and $132,499, respectively. As of December 31,
      2013, the Company has total gross capitalized costs of mineral properties
      of $585,457; $367,394 in proved properties and $218,063 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 years ended December 31, 2013
      and 2012 was $52,957 and $105,880, respectively. Subsequent to year end,
      revenue producing investments in mineral properties were sold for a total
      of $540,000 (See footnote 11 for further details). 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>Poston Prospect</B></P></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</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 year ended December 31,
      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%">&nbsp;</TD>
    <TD>&nbsp;</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. As of December 31, 2012, the investment in these mineral properties
      is $1,582,324, net of accumulated amortization of $132,499. During the
      year ended December 31, 2013, the Company invested an additional $43,180.
      Management reviewed the carrying amount of the Company&#146;s investments in
      its oil and gas properties as of the third quarter of 2013 and recognized
      an impairment expense in the amount of $1,172,547 for the year ended
      December 31, 2013. As of December 31, 2013, the investment in these
      mineral properties is $400,000 net of accumulated amortization of
      $185,457. The Oklahoma prospects wells contributed approximately 95% of
      the Company&#146;s 2012 revenue and 100% of the revenue for the year ended
      December 31, 2013. Subsequent to year end, reserve producing investments in mineral
      properties were sold for a total of $540,000 (See footnote 11 for further
      details).</P></TD>
  </TR>
</TABLE>
<BR>
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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 vAlign=top width="5%"><B>5.</B> </TD>
    <TD><P align=justify><B>Fair Value Measurements</B></P></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</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 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. A reconciliation of level 3 assets can
  be found in footnote 4 which discusses changes in the Investments in mineral
  properties during 2012 and 2013. </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" noWrap align=center
      width="10%">Level 1 </TD>
    <TD noWrap align=center width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=center width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=center
      width="10%">Level 2 </TD>
    <TD noWrap align=center width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=center width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=center
      width="10%">Level 3 </TD>
    <TD noWrap align=center width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=center width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=center
      width="10%">Total </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>December 31, 2013: </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; &nbsp;Cash </TD>
    <TD vAlign=bottom align=left width="1%" >$</TD>
    <TD vAlign=bottom align=right width="10%">&nbsp;15,793 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >$</TD>
    <TD vAlign=bottom align=right width="10%">&nbsp;- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >$</TD>
    <TD vAlign=bottom align=right width="10%">&nbsp;- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >$</TD>
    <TD vAlign=bottom align=right width="10%">&nbsp;15,793 </TD>
    <TD vAlign=bottom 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 vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>13,792 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>13,792 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; &nbsp;Investments in mineral properties, net </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">400,000 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">400,000 </TD>
    <TD vAlign=bottom 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 vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>(1,054,776</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="10%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>(1,054,776</TD>
    <TD vAlign=bottom 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 vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">(1,014,722</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">(1,014,722</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
  </TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="10%" 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="10%" 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="10%" 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="10%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>December 31, 2012: </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%">&nbsp;</TD>
    <TD vAlign=bottom 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 vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>&nbsp;16,216 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>&nbsp;- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>&nbsp;- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>&nbsp;16,216 </TD>
    <TD vAlign=bottom 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 vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">13,735 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">13,735 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Investments in mineral
      properties, net </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>1,582,324 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>1,582,324 </TD>
    <TD vAlign=bottom 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 vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">(609,261</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">(609,261</TD>
    <TD vAlign=bottom 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 vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>(1,032,035</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="10%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>(1,032,035</TD>
    <TD vAlign=bottom 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>
        <P align=justify><B>Short term note from Officer</B></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 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 December 31, 2012, the balance on this
      note was $39,200. On September 27, 2013, the Company entered into an
      agreement to issue 3,768,844 restricted shares of stock at $0.0199 for an
      amount of $75,000 in lieu of payment towards this note and $35,800 in
      other payables owed. As of December 31, 2013, the balance on this note is
      $0.</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%">&nbsp;</TD>
    <TD>&nbsp;</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>
</TABLE>
<BR>
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<P style="MARGIN-LEFT: 5%" 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>
<P style="MARGIN-LEFT: 5%" align=justify><B>Note Payable &#150; Centennial Petroleum
  Partners </B></P>
<P style="MARGIN-LEFT: 5%" 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&#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>
<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 year December
  31, 2013, the Company authorized the issuance of an additional 4,219,785 shares
  as a result of the anti-dilution provision and recorded a financing expense in
  the amount of $47,525; the fair value of the shares on the date of the grant. As
  of December 31, 2013, the Company has not issued any of the shares discussed
  above and CPP is owed 7,222,889 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 </B></P>
<P style="MARGIN-LEFT: 5%" align=justify>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>
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<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. On August 20,
  2013, an additional $65,000 of the outstanding convertible debt was assigned to
  Magna Group, LLC. On November 6, 2013, an additional $150,000 of the outstanding
  convertible debt was assigned to Magna Group, LLC. See &#147;Notes Payable &#150; Magna
  Group&#148; below for further details.</P>
<P style="MARGIN-LEFT: 5%" align=justify>As of December 31, 2013 and 2012, the
  principal balance related to this note totaled $278,306 and $633,306,
  respectively. This note is due on December 31, 2014. </P>
<P style="MARGIN-LEFT: 5%" align=justify><B>Convertible Debentures - 2010 </B></P>
<P style="MARGIN-LEFT: 5%" align=justify>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, was
  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 year ended December 31, 2013, the Company authorized the issuance of
  an additional 4,219,785 shares as a result of the anti-dilution provision and
  recorded a financing expense in the amount of $47,525; the fair value of the
  shares on the date of the grant. As of December 31, 2013, the Company has not
  issued any of the shares discussed above and Maxum is owed 7,222,889 shares.
  These shares are recorded as owed but not issued on the balance sheet.</P>
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<P style="MARGIN-LEFT: 5%" align=justify><B>Note Payable &#150; ASYM</B> </P>
<P style="MARGIN-LEFT: 5%" align=justify>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&#146;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&#146;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 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>
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<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 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 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 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 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 December
  31, 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 warrants to
  purchase 4,662 shares of common stock 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. As of June 30, 2013, the Company was still
  not in compliance with those covenants. On September 5, 2013, ASYM granted the
  Company a waiver of those covenants through September 11, 2013 in return for a
  $25,000 waiver fee. The $25,000 waiver fee was not paid but rather recorded as a
  tranche loan under the agreement. In July of 2013, the Company received an
  additional tranche in the amount of $60,766. During the quarter ended September
  30, 2013, In accordance with the terms of the financing agreement the Company
  granted the issuance of warrants to purchase 2,158,994 shares of common stock in
  connection with the funding advances and valued the warrants at $21,590. 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 203.77% iv)
  risk free rate of 1.39% and v) share price on the date of grant of $0.01. As of
  September 30, 2013, the Company was still not in compliance with those
  covenants. On November 18, 2013, ASYM granted an extension of the waiver of
  those covenants for all periods prior to November 18, 2013 in return for $25,000
  waiver fee in the form of an additional tranche loan under the agreement. During
  the quarter ended December 31, 2013, In accordance with the terms of the
  financing agreement the Company granted the issuance of warrants to purchase
  2,056,129 shares of common stock in connection with the funding advances and
  valued the warrants at $25,290. 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 207.46% iv) risk free rate of 1.41% and v) share
  price on the date of grant of $0.0125. As of the date of these financial
  statements, the Company is in default with respect to the ASYM note.</P>
<P style="MARGIN-LEFT: 5%" align=justify>Through all of the transaction listed
  above, a total discount relating to the issuance of warrants with this debt has
  been recorded in the amount of $239,812. Of this amount $31,520 and $74,324 has
  been amortized into interest expense during the years ended December 31, 2012
  and 2013, respectively. As of December 31, 2013, the unamortized portion of the
  discount is $133,969. </P>
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<P style="MARGIN-LEFT: 5%" align=justify>As of December 31, 2013, $685,842 is
  owed on this note payable. Subsequent to year-end, the Company sold all of its
  investments in mineral properties for $540,000, most of which went to ASYM in
  partial satisfaction of this debt (See footnote 11 for further details). </P>
<P style="MARGIN-LEFT: 5%" align=justify><B>Notes Payable &#150; Magna Group </B></P>
<P style="MARGIN-LEFT: 5%" align=justify>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 matured 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 year ended December 31, 2013,
  $140,000 was amortized into interest expense in relation to the discount and the
  discount is $0 as of December 31, 2013. 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. In August of 2013, Magna
  converted an additional $10,000 of the note into 1,250,000 shares of common
  stock. In December of 2013, Magna converted an additional $1,560 in accrued
  interest related to this note into 195,000 shares of common stock. As of
  December 31, 2013, there is no balance due on this note. </P>
<P style="MARGIN-LEFT: 5%" align=justify>In August of 2013, an additional
  $65,000 of outstanding convertible debt of the Company was assigned to Magna.
  The Company issued to Magna a Twelve Percent (12%) Convertible Note, which
  matures on August 20, 2014. 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 $0.005 on the day of
  conversion request. 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 $39,806 and a
  discount was recorded. The discount will be amortized over the one year term of
  the loan and adjusted for any conversions to common stock. During the year ended
  December 31, 2013, $39,806 was amortized into interest expense in relation to
  the discount and the discount is $0 as of December 31, 2013. In September of
  2013, the company issued 1,500,000 shares of common stock in relation to a
  conversion of $7,500 of the note. In October of 2013, the company issued
  3,000,000 shares of common stock in relation to a conversion of $15,000 of the
  note. In November of 2013, the company issued 4,500,000 shares of common stock
  in relation to a conversion of $22,500 of the note. In December of 2013, the
  company issued 4,178,764 shares of common stock in relation to a conversion of
  $20,000 of the note plus accrued interest of $894. As of December 31, 2013,
  there is no balance due on this note. </P>
<P style="MARGIN-LEFT: 5%" align=justify>In November of 2013, an additional
  $150,000 of outstanding convertible debt of the Company was assigned to Magna.
  The Company issued to Magna a Twelve Percent (12%) Convertible Note, which
  matures on November 6, 2014. 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 $0.005 on the day of
  conversion request. 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 $96,429 and
  a discount was recorded. The discount will be amortized over the one year term
  of the loan and adjusted for any conversions to common stock. During the year
  ended December 31, 2013, $28,928 was amortized into interest expense in relation
  to the discount and the discount is $67,500 as of December 31, 2013. In December
  of 2013, the company issued 4,000,000 shares of common stock in relation to a
  conversion of $20,000 of the note. As of December 31, 2013, the balance owed on
  the note is $130,000.</P>
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<P style="MARGIN-LEFT: 5%" align=justify>Subsequent to December 31, 2013, an
  additional $40,000 of this note has been converted into 8,000,000 shares of
  common stock. </P>
<P style="MARGIN-LEFT: 5%" align=justify><B>Notes Payable &#150; JMJ Financial </B></P>
<P style="MARGIN-LEFT: 5%" align=justify>Effective March 27, 2013, the Company
  issued a convertible promissory note in the total possible amount of $335,000
  which includes principle of $300,000 and an original issue discount (OID) of
  $35,000. The Company then borrowed $50,000 under the note ($5,833 OID). The note
  bears no interest if repaid within ninety days and bears interest of 12% if not
  repaid within ninety dates. 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. 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.
  In the case the conversion shares are not deliverable by DWAC an additional 10%
  discount will apply. 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 style="MARGIN-LEFT: 5%" align=justify>On June 27, 2013, the Company borrowed
  an additional $25,000 under the note ($2,917 OID). 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>
<P style="MARGIN-LEFT: 5%" align=justify>On September 27, 2013, the Company
  borrowed an additional $25,000 under the note ($2,917 OID). A discount on this
  notes payable related to the beneficial conversion feature was recorded in the
  amount of $19,643 and will be amortized over the one year of the loan.</P>
<P style="MARGIN-LEFT: 5%" align=justify>On December 9, 2013, the Company
  borrowed an additional $30,000 under the note. A discount on this notes payable
  related to the beneficial conversion feature was recorded in the amount of
  $18,158 and will be amortized over the one year of the loan.</P>
<P style="MARGIN-LEFT: 5%" align=justify>During the year ended December 31,
  2013, $36,424 was amortized into interest expense in relation to the discount
  and the debt conversion to stock as noted below. As of December 31, 2013, the
  unamortized amount of the discount is $31,377.</P>
<P style="MARGIN-LEFT: 5%" align=justify>In September of 2013, JMJ converted
  $18,000 of the note into 3,000,000 shares of common stock. In November of 2013,
  JMJ converted $22,140 of the note into 3,900,000 shares of common stock. In
  December of 2013, JMJ converted $20,500 of the note into 4,100,000 shares of
  common stock.</P>
<P style="MARGIN-LEFT: 5%" align=justify>As of December 31, 2013, the balance on
  this note is $69,360.</P>
<P style="MARGIN-LEFT: 5%" align=justify>Subsequent to December 31, 2013, an
  additional $43,660 of the note payable has been converted into 12,415,152 shares
  of common stock and the Company borrowed an additional $30,000 under this note. </P>
<P style="MARGIN-LEFT: 5%" align=justify><B>Notes Payable &#150; Hanover Holdings I,
  LLC</B></P>
<P style="MARGIN-LEFT: 5%" 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. 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 new beneficial conversion feature was increased by $15,489. In September
  of 2013, $12,000 of the note was converted to 1,500,000 shares of common stock.
  As of December 31, 2013, the balance of the note was $39,500. During the year
  ended December 31, 2013, $29,410 was amortized into interest expense in relation
  to the discount and the unamortized discount is $12,004 as of December 31,
  2013.</P>
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<P style="MARGIN-LEFT: 5%" 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%, is payable on December 26, 2013, and is convertible at $0.008.
  The beneficial conversion feature on this note was deemed to be immaterial. As
  of December 31, 2013, the balance of the note was $5,000. As of December 31,
  2013, the Company is in default with respect to this loan. </P>
<P style="MARGIN-LEFT: 5%" align=justify>During July and August of 2013, the
  Company issued an additional $31,800 convertible promissory note, bearing
  interest at 12%, payable on August 20, 2014, and convertible at $0.004. A
  discount on notes payable related to the beneficial conversion feature was
  recorded in the amount of $21,940 and will be amortized over the life of the
  loan. As of December 31, 2013, $7,313 of the discount had been amortized to
  interest expense and $14,627 remained unamortized. The balance of the note as of
  December 31, 2013 was $31,800.</P>
<P style="MARGIN-LEFT: 5%" align=justify>During November of 2013, the Company
  issued an additional $51,500 convertible promissory note, bearing interest at
  12%, payable on November 5, 2014, and convertible at $0.004. A discount on notes
  payable related to the beneficial conversion feature was recorded in the amount
  of $35,531 and will be amortized over the life of the loan. As of December 31,
  2013, $5,922 of the discount had been amortized to interest expense and $26,609
  remained unamortized. The balance of the note as of December 31, 2013 was
  $51,500. </P>
<P style="MARGIN-LEFT: 5%" align=justify><B>Notes Payable &#150; Individual</B> </P>
<P style="MARGIN-LEFT: 5%" align=justify>Effective June 1, 2013, the Company
  issued a convertible promissory note in the amount of $15,000 to an unrelated
  individual. 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 75% 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 and recorded in the amount of $7,500. This discount will be
  amortized over the one year of the loan. During the year ended December 31,
  2013, $5,000 was amortized into interest expense in relation to the discount and
  an unamortized discount of $2,500 remains as of December 31, 2013. As of
  December 31, 2013, the balance on the note was $15,000. </P>
<P style="MARGIN-LEFT: 5%" align=justify><B>Loan Guarantee </B></P>
<P style="MARGIN-LEFT: 5%" 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>
<P style="MARGIN-LEFT: 5%" align=justify><B>Financing and interest expense </B></P>
<P style="MARGIN-LEFT: 5%" align=justify>Financing and interest costs related to
  the Company&#146;s aforementioned financing activities for the years ended December
  31, 2013 and 2012, totaled $738,621 and $2,115,799, respectively. Accrued
  interest related to all of the above notes was $169,030 and $41,073 as of
  December 31, 2013 and 2012, respectively. </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><B>Capitalized financing costs</B></P></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify>Capitalized financing costs as of December 31, 2013 were
      $210,076 relating to $150,000 commitment fee relating to the Hanover
      purchase agreement as noted below and $60,076 10% surcharge on the ASYM
      notes payable discuss above. These capitalized financing costs are being
      amortized over the periods of the respective agreements. $6,737 of these
      costs were amortized in the year ended December 31, 2012 and $56,477 were
      amortized in the year ended December 31, 2013 leaving unamortized
      capitalized financing costs of $146,861 as of December 31, 2013.</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%">&nbsp;</TD>
    <TD>&nbsp;</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 84,500
      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>
  <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 6,006,208 shares of common stock valued at
      $832,083 in connection with the anti-dilution provisions provided to Maxum
      and CPP.</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 47,620,406 shares of
      common stock issued and outstanding and 6,423,708 shares of 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>During the year ended December 31, 2013, the Company
      issued 3,375,897 shares of common stock for cash of $60,278.</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, 2013, the Company
      issued 45,308,667 shares of common stock for the conversion of $336,840 in
      convertible debt as discussed in Note 6. The Company also issued 2,498,995
      shares of common stock for the conversion of $41,548 in accounts payable.
      $39,200 of the notes payable and $35,800 of the accounts payable converted
      was to an officer of the Company.</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, 2013, the Company
      issued 373,764 share of common stock for the conversion of accrued
      interest on convertible debt 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, 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></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, 2013, 383,000 shares
      that were owed but not issued from prior periods 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 the year ended December 31, 2013, the Company
      authorized the issuance of 8,439,570 shares of common stock in connection
      with the anti-dilution provisions provided to Maxum and CP as discussed in
      Note 6 above. As of December 31, 2013, these shares have not been
      issued.</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, 2013 there are 101,325,435 shares of
      common stock issued and outstanding and 14,480,278 shares of common stock owed
      but not issued. </P></TD>
  </TR>
</TABLE>
<BR>
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<P style="MARGIN-LEFT: 5%" align=justify><B>Hanover Holdings I, LLC Purchase
  Agreement: </B></P>
<P style="MARGIN-LEFT: 5%" align=justify>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 style="MARGIN-LEFT: 5%" 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 day prior written notice to the
  other. </P>
<P style="MARGIN-LEFT: 5%" 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>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>
  <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>As of December 31, 2013, the Company had sold 3,134,230
      shares under this agreement for total proceeds of $45,778.</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%">&nbsp;</TD>
    <TD>&nbsp;</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. The warrants have a
      $0.40 exercise price and a two-year life. The warrants expired 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 year ended December 31, 2013, the Company
      issued an additional 4,219,785 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, third, and fourth quarters 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 December 31, 2013, there are 7,222,889 warrants
      outstanding at an exercise price of $0.01.</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%">&nbsp;</TD>
    <TD>&nbsp;</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>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <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, 2013 and
      2012, resulted in losses. Accordingly, no provisions for
      current income taxes have been reflected in the accompanying statements of
      operations.</P></TD>
  </TR>
</TABLE>
<BR>
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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>As of December 31, 2013, the Company has total net
      operating loss carry forwards of approximately $11,000,000 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 and when tax returns
      haven&#146;t been filed. 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 width="5%"></TD>
    <TD><P align=justify>The calendar years of 2011, 2012, and 2013 remain subject
      to examination by major tax jurisdictions.</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%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify>During the year ended December 31, 2012, an officer of
      the Company loaned the company $39,200 as discussed in Note 6
      above.</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, 2013, the Company
      issued 4,101,844 shares to an officer. 3,768,844 were issued for
      conversion of $75,000 in notes ($39,200) and accounts payable ($35,800) as
      discussed in Note 6 and 333,000 were issued that were owed from prior
      periods. During the year ended December 31, 2012, the Company issued
      900,000 shares to officers and directors 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 year ended December 31, 2013, the Company
      reimbursed an officer approximately $26,847 in connection with various
      office expenses paid for on the Company&#146;s behalf. During the year ended
      December 31, 2012, the Company reimbursed an officer $16,498 for a
      residential lease and related utilities in Wichita, Kansas, which was
      being used as the corporate offices and $21,326 in connection with various
      office expenses paid for on the Company&#146;s behalf.</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 December 31, 2013, 34,500
      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>Acquisition and Development Agreement:</B></P></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify>During November of 2013, the Company executed definitive
      agreements for the acquisition and development of the Kansas
      Mississippi-Osage Project (the "Kansas Project"), a 15,000 acre
      Mississippi Lime package located in Rice and Reno Counties, Kansas (the
      "Agreement").</P></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify>The expenditure commitment and obligation for the Kansas
      Project totals $5.4 million to the benefit of the seller, which we
      expected to be fully paid after drilling approximately 10 wells. The
      acreage, if fully developed on a 640-acre unit basis, could potentially
      support the drilling of a minimum of 23 wells, however, we expected down
      spacing will increase the number of drilling locations upon development of
      the assets. The Company will earn its 80% working interest on each
      640-acre unit drilled, until it ultimately will have ownership of 15,000
      gross, or 12,000 net acres. The play carries an overall 81.25% Net Revenue
      Interest (N.R.I.). The Company and the seller have structured a timely
      development of a new well every ninety (90) days, allowing sufficient time
      to drill, complete and evaluate the well prior to proceeding to the next
      planned location. Under the terms of the Agreement, the Company will not
      be required to provide the seller any upfront funds, however, the Company
      will be obligated to drill a minimum of three (3) initial horizontal wells
      to earn its interest in each 640 acre parcel per well. The Company
      estimates that for the first ten (10) wells, the Agreement requires the
      Company to fund 100% of the drilling and completion costs including
      installation of storage tanks on horizontal Mississippi- Osage wells for
      the Company to earn its 80% Working Interest (W.I.). The Company was
      required to begin the permitting of the first well within thirty days
      (30). The well must be spudded prior to March 15 2014. Each well was
      estimated to cost $2.5 million to drill and complete.</P></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify>As of the date of this filing, the Company has not been
      able to raise the funds to complete its commitments under the agreement
      and has decided not to pursue this agreement any
      further.</P></TD>
  </TR>
</TABLE>
<BR>
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<TABLE
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cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>
  <TR>
    <TD vAlign=top width="5%"><B>11.</B> </TD>
    <TD><P align=justify><B>Subsequent Events</B></P></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</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. The Company has no
      transactions to record and the following to disclose:</P></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify>Subsequent to December 31, 2013, $83,660 of notes payable
      has been converted into 20,415,152 shares of common stock.</P></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify>During February of 2014, JMJ Financial loaned an
      additional $30,000 to the Company.</P></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify>On February 14, 2014, the Company entered into an
      agreement to sell its revenue producing investments in mineral properties,
      effective January 1, 2014, for $540,000. The sale was completed on March
      10, 2014. The proceeds were used to pay off approximately $460,000 of the
      note payable to ASYM plus some accrued interest.</P></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%"></TD>
    <TD><P align=justify>During April of 2014, ASYM loaned an additional $25,000
      to the Company.</P></TD>
  </TR>
</TABLE>
<BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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<A name=page_39></A>
<P align=center><B>INDEX TO EXHIBITS </B><BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B>Exhibit
      Number </B></TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="83%"
    ><B>Name </B></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="83%" bgColor=#eeeeee ><P align=justify>Articles of Incorporation, as amended </P></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="83%" ><P align=justify>&nbsp;</P></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="83%" 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="83%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee>10.1(3) </TD>
    <TD align=left width="2%"  bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left width="83%" bgColor=#eeeeee ><P align=justify>Management and Governance Consultant Agreement with
      Robert McIntosh, effective March 15, 2009 </P></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="83%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee>10.2(4) </TD>
    <TD align=left width="2%"  bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left width="83%" bgColor=#eeeeee ><P align=justify>Note Purchase Agreement with John E. Friesen, dated
      August 13, 2009 </P></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="83%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee>10.3(5) </TD>
    <TD align=left width="2%"  bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left width="83%" bgColor=#eeeeee ><P align=justify>Secured Convertible Promissory Note with John E. Friesen,
      dated September 15, 2009 </P></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="83%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee>10.4(6) </TD>
    <TD align=left width="2%"  bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left width="83%" bgColor=#eeeeee ><P align=justify>Operating Agreement with Bay Petroleum Corp., dated April
      21, 2010 </P></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="83%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee>10.5(7) </TD>
    <TD align=left width="2%"  bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left width="83%" bgColor=#eeeeee ><P align=justify>Debenture and Warrant Purchase Agreement with Maxum
      Overseas Fund, dated May 17, 2010 </P></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="83%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee>10.6(7) </TD>
    <TD align=left width="2%"  bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left width="83%" bgColor=#eeeeee ><P align=justify>Form of Warrant to Purchase Common Stock with Maxum
      Overseas Fund </P></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="83%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee>10.7(8) </TD>
    <TD align=left width="2%"  bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left width="83%" bgColor=#eeeeee ><P align=justify>Amended and Restated Convertible Debenture with Maxum
      Overseas Fund, dated May 4, 2011 </P></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="83%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee>10.8(9) </TD>
    <TD align=left width="2%"  bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left width="83%" bgColor=#eeeeee ><P align=justify>Amendment to Amended and Restated Convertible Debenture
      with Maxum Overseas Fund, dated July 18, 2011 </P></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="83%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee>10.9(10) </TD>
    <TD align=left width="2%"  bgColor=#eeeeee></TD>
    <TD align=left width="83%" bgColor=#eeeeee ><P align=justify>Second Amendment to Amended and Restated Convertible
      Debenture with Maxum Overseas Fund, dated August 12, 2011 </P></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="83%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee>10.10(11) </TD>
    <TD align=left width="2%"  bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left width="83%" bgColor=#eeeeee ><P align=justify>Second Amendment to Promissory Notes with John E.
      Friesen, dated August 13, 2011 </P></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="83%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee>10.11(12) </TD>
    <TD align=left width="2%"  bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left width="83%" bgColor=#eeeeee ><P align=justify>Form of Accounts Payable Agreement </P></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="83%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee>10.12(13) </TD>
    <TD align=left width="2%"  bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left width="83%" bgColor=#eeeeee ><P align=justify>Third Amendment to Promissory Notes with John E. Friesen,
      dated July 3, 2012 </P></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="83%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee>10.13(13) </TD>
    <TD align=left width="2%"  bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left width="83%" bgColor=#eeeeee ><P align=justify>Purchase Agreement with ASYM Energy Opportunities LLC,
      dated July 3, 2012 </P></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="83%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee>10.14(13) </TD>
    <TD align=left width="2%"  bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left width="83%" bgColor=#eeeeee ><P align=justify>Form of Warrant to Purchase Common Stock with ASYM Energy
      Opportunities LLC </P></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="83%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee>10.15(13) </TD>
    <TD align=left width="2%"  bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left width="83%" bgColor=#eeeeee ><P align=justify>Form of Senior Secured Promissory Note with ASYM Energy
      Opportunities LLC </P></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="83%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee>10.16(13) </TD>
    <TD align=left width="2%"  bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left width="83%" bgColor=#eeeeee ><P align=justify>First Lien Security Agreement with ASYM Energy
      Opportunities LLC, dated July 3, 2012 </P></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="83%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee>10.17(13) </TD>
    <TD align=left width="2%"  bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left width="83%" bgColor=#eeeeee ><P align=justify>Management Services Agreement with ASYM Management LLC,
      dated July 3, 2012 </P></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="83%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee>10.18(13) </TD>
    <TD align=left width="2%"  bgColor=#eeeeee></TD>
    <TD align=left width="83%" bgColor=#eeeeee ><P align=justify>Mortgage, Deed of Trust, Assignment of Production,
      Security Agreement, Fixture Filing and Financing Statement with ASYM
      Energy Opportunities LLC, dated July 3, 2012 </P></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="83%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee>10.19(13) </TD>
    <TD align=left width="2%"  bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left width="83%" bgColor=#eeeeee ><P align=justify>Deposit Account Control (Default) Agreement with ASYM
      Energy Opportunities LLC, dated July 3, 2012 </P></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="83%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee>10.20(14) </TD>
    <TD align=left width="2%"  bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left width="83%" bgColor=#eeeeee ><P align=justify>Common Stock Purchase Agreement with Hanover Holdings I,
      LLC, dated March 22, 2013 </P></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="83%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee>10.21(14) </TD>
    <TD align=left width="2%"  bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left width="83%" bgColor=#eeeeee ><P align=justify>Registration Rights Agreement with Hanover Holdings I,
      LLC, dated March 22, 2013 </P></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="83%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee>10.22(15) </TD>
    <TD align=left width="2%"  bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left width="83%" bgColor=#eeeeee ><P align=justify>Twelve Percent (12%) Convertible Note with Magna Group,
      LLC, dated March 4, 2013 </P></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="83%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee><a href="exhibit10-23.htm">10.23 </a></TD>
    <TD align=left width="2%"  bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left width="83%" bgColor=#eeeeee ><P align=justify><a href="exhibit10-23.htm">Purchase and Sale Agreement with Roberson Oil Company, Inc.</a></P></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="83%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee><a href="exhibit21-1.htm">21 </a></TD>
    <TD align=left width="2%"  bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left width="83%" bgColor=#eeeeee ><P align=justify><a href="exhibit21-1.htm">List of Subsidiaries </a></P></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="83%" ><P align=justify>&nbsp;</P></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="83%" bgColor=#eeeeee ><P align=justify><a href="exhibit31-1.htm">Rule 13(a) &#151; 14(a)/15(d) &#151; 14(a) Certification </a></P></TD>
  </TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="83%" ><P align=justify>&nbsp;</P></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="83%" bgColor=#eeeeee ><P align=justify><a href="exhibit32-1.htm">Section 1350 Certifications </a></P></TD>
  </TR>
</TABLE>
<P align=center>25<BR>
</P>
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<P align="justify"> <B>Footnotes to Exhibits Index</B></P>
<TABLE BCLLIST style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD width=5% valign=top> (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>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width=5% valign=top> (2) </TD>
    <TD><P align="justify">Incorporated by reference to the Form 10-SB12G filed June 19, 1997.</P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width=5% valign=top> (3) </TD>
    <TD><P align="justify">Incorporated by reference to the Current Report on Form 8-K filed March 27, 2009.</P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width=5% valign=top> (4) </TD>
    <TD><P align="justify">Incorporated by reference to the Quarterly Report on Form 10-Q filed August 13, 2009.</P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width=5% valign=top> (5) </TD>
    <TD><P align="justify">Incorporated by reference to the Current Report on Form 8-K filed September 24, 2009.</P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width=5% valign=top> (6) </TD>
    <TD><P align="justify">Incorporated by reference to the Current Report on Form 8-K filed April 23, 2010.</P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width=5% valign=top> (7) </TD>
    <TD><P align="justify">Incorporated by reference to the Current Report on Form 8-K filed May 20, 2010.</P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width=5% valign=top> (8) </TD>
    <TD><P align="justify">Incorporated by reference to the Current Report on Form 8-K filed May 10, 2011.</P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width=5% valign=top> (9) </TD>
    <TD><P align="justify">Incorporated by reference to the Current Report on Form 8-K filed July 19, 2011.</P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width=5% valign=top> (10) </TD>
    <TD><P align="justify">Incorporated by reference to the Quarterly Report on Form 10-Q filed August 12, 2011.</P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width=5% valign=top> (11) </TD>
    <TD><P align="justify">Incorporated by reference to the Current Report on Form 8-K filed August 16, 2011.</P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width=5% valign=top> (12) </TD>
    <TD><P align="justify">Incorporated by reference to the Quarterly Report on Form 10-Q filed August 14, 2012.</P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width=5% valign=top> (13) </TD>
    <TD><P align="justify">Incorporated by reference to the Current Report on Form 8-K filed July 9, 2012.</P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width=5% valign=top> (14) </TD>
    <TD><P align="justify">Incorporated by reference to the Current Report on Form 8-K filed March 25, 2013.</P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width=5% valign=top> (15) </TD>
    <TD><P align="justify">Incorporated by reference to the Annual Report on Form 10-K filed April 15, 2013.</P></TD>
  </TR>
</TABLE>
<p align="center">26<BR>
</p>
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<DOCUMENT>
<TYPE>EX-10.23
<SEQUENCE>2
<FILENAME>exhibit10-23.htm
<DESCRIPTION>EXHIBIT 10.23
<TEXT>



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   <TITLE> American Petro-Hunter, Inc.: Exhibit 10.23 - Filed by newsfilecorp.com</TITLE>

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<P align="center">
<B><U>PURCHASE AND SALE AGREEMENT</U></B><B> </B></P>
<P align="justify" style="text-indent: 5%">
This Purchase and Sale Agreement (&ldquo;<U>Agreement</U>&rdquo;), entered into as of <B>February____,</B>2014, to be effective January 1, 2014 (the &ldquo;<U>Effective Date</U>&rdquo;), is by and between American
Petro-Hunter, Inc., a Nevada corporation, with an address of 250 N. Rock Rd., Suite 365, Wichita, KS 67206 (&ldquo;<U>Seller</U>&rdquo;), and Roberson Oil Company, Inc., an Oklahoma corporation having its principal place of business located at 201
E. Cottage Street, Ada, Oklahoma 74820 (&ldquo;<U>Buyer</U>&rdquo;).  Seller and Buyer are sometimes referred to herein individually as a &ldquo;<U>Party</U>&rdquo; and collectively as the &ldquo;Parties&rdquo;.</P>
<P align="justify" style="text-indent: 5%">
WHEREAS, Seller owns the Properties (as defined below) and desires to sell the Properties to Buyer, and Buyer desires to purchase the Properties from Seller, upon the terms and conditions set forth herein. </P>
<P align="justify" style="text-indent: 5%">
NOW THEREFORE in consideration of the mutual covenants contained in this Agreement and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Buyer and Seller agree as follows: </P>
<P align="justify">
1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subject to the terms and conditions hereof, Seller hereby agrees to sell, convey and assign to Buyer, and Buyer hereby agrees to purchase, one hundred percent (100%) of the Working Interest owned by Seller, the amount of such Working Interest
owned by Seller being more particularly described in <B><U>Exhibit A</U></B> attached hereto and made a part hereof for all purposes, and an undivided Seventy-Seven percent (77%) Net Revenue Interest <U>(as defined below) on an 8/8ths basis</U>,
proportionately reduced to the assigned Working Interest, in and to the oil and gas leases described in <B><U>Exhibit A</U></B> (the &ldquo;<U>Leases</U>&rdquo;), including any extensions and renewals thereof; and, all oil, gas, water, disposal and
injection wells located on the lands covered by the Leases or included in pooled acreage or units with which any Lease may have been pooled or unitized (the &ldquo;<U>Wells</U>&rdquo;), including the Wells listed on <B><U>Exhibit B</U></B>, and all
oil, gas and other hydrocarbons produced from or attributable to the Wells, all Leases free and clear of all liens, encumbrances and mortgages, and all rights to any operating agreements and all rights to the Oil and Gas Development Agreements
further described on the attached <B><U>Exhibit C</U></B>, and all other real and personal property, any and all other property rights relating to the Leases, the leasehold estates created thereby, or the lands covered by the Leases or included in
pooled acreage or units with which any Lease may have been pooled or unitized, including, but not limited to, all surface leases and surface use agreements, easements, rights of way, servitudes, contracts, contract rights, water rights, lease, title
and other files, geophysical and seismic data, and any net profits interest, production payments, reversionary interests and other interests in the oil and gas in place or the production thereof from the lands covered by the Leases or included in
pooled acreage or units with which any Lease may have been pooled or unitized (all the foregoing collectively the &ldquo;<U>Properties</U>&rdquo;). For clarification purposes, it is the expressed intent of the Seller to assign all right, title and
interest to the leases included in Exhibit A whether mentioned specifically or not. </P>
<P align="justify">
2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The consideration for the sale of the Properties shall be FIVE-HUNDRED-FORTY THOUSAND DOLLARS (&#36;540,000) (the &ldquo;<U>Purchase Price</U>&rdquo;). The effective date and time for the purchase and sale of the Properties shall be 7:00 a.m. at
the location of the Properties on the Effective Date (the &ldquo;Effective Time&rdquo;).</P>
<P align="justify">
3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  Seller represents and warrants to Buyer as of the Effective Date and as of the Closing Date that: </P>
<P align="justify" style="text-indent: 5%">
(a) Seller (i) has been duly organized and is validly existing and in good standing under the laws of the jurisdiction of its organization and is duly qualified or licensed to do business and is in good standing as a
foreign entity in each jurisdiction in which the character or location of its assets or properties (whether owned, leased or licensed) or the nature of its business make such qualification
necessary, (ii) is authorized to enter into this Agreement and consummate the
transactions contemplated hereby, and (iii) has all requisite power and
authority to own its property (including the Properties);</P>
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<P align="justify" style="text-indent: 5%">
(b) neither the execution and delivery of
this Agreement nor the consummation or performance of the transactions contemplated hereby will (i) result in any default under any agreement or instrument to which Seller is a party or by which any of the Properties is bound, (ii) violate any
provision of Seller&rsquo;s organizational or governing documents, (iii) violate any order, writ, injunction, permit, decree, statute, rule or regulation applicable to Seller or to any of the Properties, or (iv) require any filing, consent or
approval under any statute, rule or regulation (except for approvals required to be obtained from governmental entities who are lessors under the Leases or who administer such Leases on behalf of such lessors that are customarily obtained
post-closing); </P>
<P align="justify" style="text-indent: 5%">
(c) Seller is not a &ldquo;foreign person&rdquo; within the meaning of Code Section 1445; </P>
<P align="justify" style="text-indent: 5%">
(d) this Agreement constitutes (and the other instruments delivered at the
Closing (defined below), when executed and delivered, will constitute) the
legal, valid and binding obligation of Seller, enforceable in accordance with
its terms, except as limited by bankruptcy or other laws applicable generally to
creditor's rights and as limited by general equitable principles;</P>
<P align="justify" style="text-indent: 5%">
(e) there are no pending suits, actions, or other proceedings in which Seller is
a party, and, none have been threatened, relating to any of the Properties,
including, without limitation, any actions challenging or pertaining to Seller's
title to any of the Properties or affecting the execution and delivery of this
Agreement or the consummation of the transactions contemplated hereby; </P>
<P align="justify" style="text-indent: 5%">
(f) except for those agreements listed in <B><U>Exhibit C</U></B>, none of the Leases (i) is subject to the terms of any preferential right for a third party to purchase such
Leases, or a right of first refusal, (ii) requires the consent of any third party to the valid assignment of such Lease to Buyer, (iii) is subject to the terms of any purchase or sale agreements; partnership, joint venture and/or exploration or
development agreements; transportation, marketing, and/or processing agreements; areas of mutual interest, non-competition agreements or other restrictions, (iv) is subject to any surface waivers or similar restrictions on drilling or location of
drill sites, or other restrictions on the ingress and egress to and from the Leases, for purposes of drilling and other operations, or (v) is subject to a drilling commitment, continuous drilling obligation, or other obligation to drill a well or
wells during the primary term thereof;</P>
<P align="justify" style="text-indent: 5%">
(g) <U>INTENTIONALLY OMITTED.</U> </P>
<P align="justify" style="text-indent: 5%">
(h) except for those agreements listed in <B><U>Exhibit C</U></B>, no individual or entity has any claim to the Properties or any interest therein for which Seller (or Buyer as transferee) is or would be obligated to
compensate such individual or entity for (including brokerage fees) or for which Seller (or Buyer as transferee) would be obligated to further transfer any interest in the Properties to such individual or entity;</P>
<P align="justify" style="text-indent: 5%">
(i) <U>INTENTIONALLY OMITTED</U>;
</P>
<P align="justify" style="text-indent: 5%">
(j) <U>INTENTIONALLY OMITTED</U>; </P>
<P align="justify" style="text-indent: 5%">
(k) INTENTIONALLY OMITTED. </P>
<P align="justify" style="text-indent: 5%">
(l) Seller has provided Buyer with true, correct and complete copies of all contracts relating to any of the Properties, all of which are valid and binding and in full force and effect; </P>

<P align="justify" style="text-indent: 5%">
(m) <U>INTENTIONALLY OMITTED</U>;
</P>

<P align="justify" style="text-indent: 5%">
(n) <U>INTENTIONALLY OMITTED</U>; </P>

<P align="justify" style="text-indent: 5%">
(o) <U>INTENTIONALLY OMITTED</U>; </P>

<P align="center">
2 </P>

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<A name="page_3"></A>

<P align="justify" style="text-indent: 5%">
(p) the Leases, and Seller (with respect to the Leases), are not the subject of any pending regulatory compliance or enforcement action or known investigation, and Seller has not received any notice, notification,
demand, request for information, citation, summons or order with respect to the Leases and alleging a material violation of any law, rule, regulation, order, or other command or directive issued by any governmental authority (including any
Environmental Law)  or permit (collectively &ldquo;<U>Laws</U>&rdquo;);     </P>
<p style="text-indent: 5%">(q) INTENTIONALLY OMITTED</p>
<p style="text-indent: 5%">(r) INTENTIONALLY OMITTED</p>
<p style="text-indent: 5%">(s) <U>INTENTIONALLY OMITTED</U>;</p>
<p style="text-indent: 5%">(t) <U>INTENTIONALLY OMITTED</U>;</p>
<p style="text-indent: 5%">(u) <U>INTENTIONALLY OMITTED</U>;</p>
<p style="text-indent: 5%">(v) <U>INTENTIONALLY OMITTED</U>;</p>
<P align="justify" style="text-indent: 5%">
(w) Seller has provided Buyer with a complete and accurate list of the status of any &ldquo;payout&rdquo; balance, as of the date hereof, for the Wells subject to a reversion or other adjustment at some level of cost
recovery or payout; </P>
<P align="justify" style="text-indent: 5%">
(x) none of the Properties are subject to tax partnership reporting requirements under applicable provisions of the Internal Revenue Code of 1986, as amended (the &ldquo;<B><U>Code</U></B>&rdquo;) or any foreign, state or local
Law. With respect to Taxes and Tax Returns: (i) all material Tax Returns required to be filed by Seller with respect to the Properties have been filed, (ii) all Taxes shown as due on such Tax Returns have been paid, (iii) all other Taxes,
assessments, excises and other levies not reported on Seller&rsquo;s Tax Returns but that pertain to the Properties, which, if not paid, could constitute Liens or charges against the Properties, except for Taxes being contested in good faith and by
appropriate proceedings have been paid or will be paid in the ordinary course as same become due and payable, (iv) there are no material Liens on any of the Properties that arose in connection with any failure to pay any Tax, (v) there is no
material claim or inquiry pending by any governmental authority in connection with any Tax or any Tax Return described in clauses (i), (ii) or (iii), (vi) no written claim has been made by any governmental authority in a jurisdiction where Seller
does not file a Tax Return that it is or may be subject to material taxation in that jurisdiction with respect to the Properties, and (vii) none of the Properties is held in or subject to an arrangement or agreement that results in any of the
Properties being treated as held in or subject to a partnership (or otherwise treated as an interest in any entity) for federal, state, or local income tax purposes; and </P>
<P align="justify" style="text-indent: 5%">
(y) <U>INTENTIONALLY OMITTED</U> </P>
<P align="justify" style="margin-left: 5%">
For purposes of this Agreement, &ldquo;<U>Tax Returns</U>&rdquo; means any report, return, election, document, estimated tax filing, declaration, claim for refund, information returns, or other filing provided to any governmental authority with
respect to Taxes including any schedules or attachments thereto and any amendment thereof. </P>
<P align="justify" style="margin-left: 5%">
For purposes of this Agreement, "<U>Taxes</U>" means all taxes, duties, levies, imposts, or other similar charges imposed by a governmental authority with respect to Seller&rsquo;s ownership of the Properties and or the Leases, including, without
limitation, all income, franchise, profits, margins, capital gains, transfer, gross receipts, sales, use, transfer, ad valorem,
real or personal property, excise,
severance, or other similar charges of any kind, and all estimated taxes, deficiency assessments, additions to tax, penalties and interest with respect to taxes, whether disputed or otherwise.</P>

<P align="center">
3 </P>

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<A name="page_4"></A>

<P align="justify" style="margin-left: 5%">
For purposes of this Agreement, &ldquo;<U>Net Mineral Acres</U>&rdquo; shall mean, with respect to a particular Lease, the product of (i) the percentage interest in such Lease that is burdened with the obligation to bear and pay costs and expenses
of maintenance, development and operations in connection with such Lease, without regard to royalties, overriding royalties, net profits interests or other similar burdens (&ldquo;<U>Working Interest</U>&rdquo;) <I>multiplied by</I> (ii) the number
of acres covered by such Lease <I>multiplied by</I> (iii) the Lessor&rsquo;s percentage interest in the oil and gas mineral fee estate in the land covered by such Lease. </P>
<P align="justify" style="margin-left: 5%">
The representations and warranties in <U>Sections 3(a)</U> through <U>(d)</U> shall survive the Closing indefinitely. The representations and warranties in Sections 3(e) through <U>(w)</U> shall survive Closing for a period of two years.</P>
<P align="justify">
4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Buyer represents and warrants to Seller as of the Effective Date and as of the Closing Date that: </P>
<P align="justify" style="text-indent: 5%">
(a) Buyer (i) has been duly organized and is validly existing and in good standing under the laws of the jurisdiction of its organization and is
duly qualified or licensed to do business and is in good standing as a foreign entity in each jurisdiction in which the character or location of its assets or properties (whether owned, leased or licensed) or the nature of its business make such
qualification necessary, (ii) is authorized to enter into this Agreement and consummate the transactions contemplated hereby, and (iii) has all requisite power and authority to own its property (including the Properties); </P>
<P align="justify" style="text-indent: 5%">
(b) neither the execution and delivery of this Agreement nor the consummation or performance of the transactions contemplated hereby will (i) result in any default under any agreement or instrument to which Buyer is a
party or by which any of the Properties is bound, (ii) violate any provision of Buyer&rsquo;s organizational or governing documents, (iii) violate any order, writ, injunction, permit, decree, statute, rule or regulation applicable to Buyer or to any
of the Properties, or (iv) require any filing, consent or approval under any statute, rule or regulation (except for approvals required to be obtained from governmental entities who are lessors under the Leases or who administer such Leases on
behalf of such lessors that are customarily obtained post-closing); </P>
<P align="justify" style="text-indent: 5%">
(c) Buyer is not a &ldquo;foreign person&rdquo; within the meaning of Code Section 1445; </P>
<P align="justify" style="text-indent: 5%">
(d) this Agreement constitutes (and the other instruments delivered at the
Closing (defined below), when executed and delivered, will constitute) the
legal, valid and binding obligation of Buyer, enforceable in accordance with its
terms, except as limited by bankruptcy or other laws applicable generally to
creditor's rights and as limited by general equitable principles; </P>
<P align="justify" style="text-indent: 5%">
(e) there are no pending suits, actions, or other proceedings in which Buyer is
a party, and, none have been threatened, relating to any of the Properties,
including, without limitation, any actions challenging or pertaining to Buyer's
title to any of the Properties or affecting the execution and delivery of this
Agreement or the consummation of the transactions contemplated hereby; </P>
<P align="justify">
5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
INTENTIONALLY OMITTED</P>
<P align="justify">
6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Effective as of the Closing, Buyer assumes and agrees to fully perform Seller&rsquo;s express or implied covenants under the Leases, and agrees to indemnify, defend and hold Seller harmless from any claims, lawsuits, liabilities or obligations
arising out of the failure of Buyer to do so; provided, however, Buyer shall not assume any obligations or liabilities to the extent they are (i)
attributable to any litigation, actions, suits or other proceedings affecting
the Properties that arise prior to the Closing, (ii) costs
allocated to Seller under this Agreement, (iii) attributable to the disposal or transportation by Seller off of the land covered by the Leases of any hazardous, toxic or other substances alleged to be harmful, (iv) a claim for personal injury or
death relating to the Properties and occurring prior to the Closing Date, or (v) attributable to the ownership, use, or disposition of the Properties attributable to periods prior to the Effective Date (collectively, the &ldquo;<U>Seller Retained
Liabilities</U>&rdquo;).</P>

<P align="center">
4 </P>

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<A name="page_5"></A>

<P align="justify" style="margin-left: 5%; margin-right: 5%">
SELLER AGREES TO INDEMNIFY, DEFEND, AND HOLD BUYER, ITS AFFILIATES AND THEIR RESPECTIVE PARTNERS, MEMBERS, DIRECTORS EMPLOYEES, AND REPRESENTATIVES HARMLESS FROM AND AGAINST ALL, CLAIMS, ACTIONS, CAUSES OF ACTION, LOSSES, LIABILITIES AND OTHER
DAMAGES SUFFERED BY AND EXPENSES (INCLUDING REASONABLE ATTORNEY&rsquo;S FEES) INCURRED IN CONNECTION WITH ANY SELLER RETAINED LIABILITY. </P>
<P align="justify" style="text-indent: 5%">
(a) From and after the Effective Date until the Closing, Seller will (i) not transfer, sell, mortgage, pledge, encumber or dispose of (or permit any affiliate to do any of the foregoing) any portion of the Properties;
and (iI) provide Buyer with copies of any and all correspondence received from a governmental authority with respect to the Properties within 5 days after receipt thereof. </P>
<P align="justify">
7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) Buyer&rsquo;s obligation to purchase the Properties and to take the other actions required to be taken by Buyer at the Closing shall be subject to the satisfaction of the following conditions (any of which may be waived in writing by Buyer):
(i) all of Seller&rsquo;s representations and warranties contained herein shall be true and correct, (ii) Seller shall have performed and satisfied all of its covenants set forth herein, (iii) no suit, action, or other proceeding instituted by a
third party shall be pending before any governmental authority or arbitrator seeking to restrain, prohibit, enjoin, or declare illegal, or seeking substantial damages in connection with, the transactions contemplated by this Agreement, (iv) no order
shall have been entered by any court or governmental agency that restrains or prohibits the transactions contemplated by this Agreement, (v)  all consents and approvals (if any) required from governmental authorities for the consummation of the
transactions contemplated by this Agreement shall have been granted (except for consents and approvals of governmental authorities customarily obtained subsequent to transfer of title), (vi) Seller shall have furnished Buyer with a resolution by
Seller&rsquo;s board of directors, or if Seller is a subsidiary with no separate board of directors, with a resolution by the board of directors of its ultimate parent entity, authorizing all transactions contemplated by this Agreement, specifically
including, without limitation, the sale of the Properties to Buyer, and evidencing the authority of Seller to execute, deliver, and perform its obligations hereunder, (vii) Seller shall have furnished to Buyer an affidavit of non-foreign status that
satisfies the requirements of Code Section 1445(b)(2), and (viii) Seller shall have provided Buyer certificates of good standing evidencing Seller&rsquo;s qualification to do business in each applicable jurisdiction discussed in <U>Section
3(a)</U>.</P>
<P align="justify" style="text-indent: 5%">
(b) Subject to the terms and conditions of this Agreement, the sale by Seller and the purchase by Buyer of the Properties pursuant to this Agreement (the &ldquo;<U>Closing</U>&rdquo;) shall occur on or before
<U>February</U> <U>17, 2014</U> , or such other date as Buyer and Seller may agree upon in writing (the &ldquo;<U>Closing Date</U>&rdquo;), at the offices of Buyer in Ada, Oklahoma. At the Closing, (i) Buyer shall pay the Purchase Price, (iii)
Seller shall convey the Properties to Buyer by an Assignment and Bill of Sale, which shall include a general warranty of title through February 17, 2014, and a special warranty of title thereafter in which Seller agrees to defend against any person
claiming by, through or under Seller, but not otherwise, and which conforms with the form assignment attached hereto as <B><U>Exhibit E</U></B>. Buyer and Seller shall also execute appropriate federal and state assignment forms as may be required to
effectuate the conveyance of the Properties. Seller shall deliver a notice of assignment to each operator under each operating agreement (with respect to which Seller is not the operator) applicable to the Leases or Wells within 3 days after the
Closing Date.</P>
<P align="center">
5 </P>

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<A name="page_6"></A>

<P align="justify" style="text-indent: 5%">
(c) This Agreement may be terminated by written notice at any time prior to the Closing: (i) by mutual written consent of Buyer and Seller; (ii) by Buyer pursuant to <U>Section 8</U> or <U>Section 9</U>; (iii) by Buyer
if Seller defaults hereunder and fails to cure such default within 10 days after Buyer gives Seller written notice of such default; (iv) by Seller if Buyer defaults hereunder and fails to cure such default within 10 days after Seller gives Buyer
written notice of such default, or (v) by Buyer if Buyer is not in default, provided, however, that in lieu of terminating, Buyer, in its discretion, may seek specific performance of the terms of this Agreement (and it is recognized that Buyer would
be irreparably harmed by a breach of this Agreement by Seller or the failure of Seller to satisfy such conditions, and, therefore, Buyer shall have the right to, and may, seek injunctive relief, to prevent breaches of the provisions of this
Agreement, and shall be entitled to enforce specifically the provisions of this Agreement, in any court of the United States or any state thereof having jurisdiction, in addition to any other remedy to which the parties may be entitled under this
Agreement or at law or in equity), provided that Seller shall have no obligation to cure any Title Defect or otherwise undertake any title curative efforts. If this Agreement is terminated pursuant to this <U>Section 5(c)</U>, all further
obligations of the Parties under this Agreement shall terminate; provided, however, that (x) neither Party shall be relieved of any obligation or liability arising out of any inaccuracy in or breach by such Party of a representation, warranty or
covenant in this Agreement occurring prior to such termination, and (y) the Parties shall, in any event, remain bound by and continue to be subject to this <U>Section 5(c)</U>, and the indemnity provisions of <U>Section 3</U> and <U>Section 7</U>.
Seller&rsquo;s sole remedy for Buyer&rsquo;s default shall be to terminate this Agreement. </P>
<P align="justify">
8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; INTENTIONALLY OMITTED.</P>
<P align="justify">
9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Neither Party shall have any liability, contingent or otherwise, for brokers&rsquo; or finders&rsquo; fees relating to the sale of the Properties arising from the other Party, and each Party agrees to indemnify, defend and hold the other Party
harmless from and against any such liability arising as a result of the indemnifying Party&rsquo;s actions. Each Party shall be solely responsible for the attorneys&rsquo; fees and any other costs or expenses incurred by it in connection with the
negotiation and execution of this Agreement. </P>
<P align="justify">
10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) From the date of this Agreement until the or termination of this Agreement, Buyer shall be afforded the opportunity to examine all records and information (including all title, leases, contracts, and land files) in Seller&rsquo;s possession
with respect to the Properties and to conduct such other investigations as Buyer deems necessary, in its sole discretion, including an examination of any and all public records. If Buyer determines that any Title Defect (as defined below) exists,
then Buyer shall be entitled to assert any such Title Defect by written notice to Seller on or before<U> February 17, 2014</U>. If Buyer asserts any Title Defect at least three days prior to Closing and Seller does not cure such defect to
Buyer&rsquo;s reasonable satisfaction prior to the Closing, then Buyer shall have the following options: </P>
<P align="justify" style="text-indent: 10%">
(i) If Buyer and Seller agree upon the amount by which the value of an affected Lease is reduced by such Title Defect (such amount, the
&ldquo;<U>Title Defect Amount</U>&rdquo;), then Buyer may elect to waive the Title Defect and consummate the Closing, and the Purchase Price shall be reduced by the agreed Title Defect Amount and the affected Lease shall be acquired by Buyer at
Closing, subject to the Title Defect; or </P>
<P align="justify" style="text-indent: 10%">
(ii) If Buyer and Seller do not agree upon the amount by which the value of an affected Lease is reduced by a Title Defect, then such Lease shall be excluded from this sale and the Purchase Price shall be
reduced by the value allocated to such Lease and any associated Wells, well locations, and a portion of the 3D Seismic value, if any, equal to the product of the total 3D Seismic value multiplied by a fraction, the numerator of which is the number
of Net Mineral Acres covered by the affected Lease, and the denominator of which is the total number of Net Mineral Acres covered by all Leases as shown on <B><U>Exhibit A</U></B>, all such values being as shown in the schedule of allocated values
attached hereto as <B><U>Exhibit G</U></B>; or </P>
<P align="center">
6 </P>

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<A name="page_7"></A>

<P align="justify" style="text-indent: 10%">
(iii) If the Leases subject to Title Defects cover an aggregate of more than 352 Net Mineral Acres (&ldquo;<U>Title Defect Termination Threshold</U>"),
Buyer may terminate this Agreement by written notice to Seller, and Buyer shall
have no further obligations or liabilities to Seller hereunder; or </P>

<P align="justify" style="text-indent: 10%">
(iv) Buyer may elect to consummate the Closing without an adjustment to the
Purchase Price, whereupon Buyer shall be deemed to have waived any such Title
Defect and the assignment to Buyer shall include the defective Lease. </P>
<P align="justify" style="text-indent: 10%">
(v) INTENTIONALLY OMITTED.</P>
<P align="justify" style="text-indent: 5%">
(b) INTENTIONALLY OMITTED. </P>
<P align="justify" style="text-indent: 5%">
(c) INTENTIONALLY OMITTED.  As used in this Agreement, the term &ldquo;<U>Title</U> <U>Defect</U>&rdquo; means any Lien, charge, encumbrance, obligation (including contract obligation), and a discrepancy in Net Revenue
Interest that causes Seller not to have Defensible Title (defined below) in and to any Lease as of the Effective Date and as of Closing.  As used in this Agreement, &ldquo;<U>Defensible Title</U>&rdquo; means, with respect to a particular Lease,
such title of Seller which: </P>
<P align="justify" style="text-indent: 10%">
(i) Entitles Seller to receive, throughout the life of such leases, a share of the hydrocarbons produced, saved from or attributable to such Lease, after giving effect to all valid royalties, overriding royalties,
production payments, net profits interests, carried interests, reversionary interests, or other similar interests constituting burdens upon, measured by, or payable out of  the hydrocarbons produced and saved from or attributable to such Lease (a
&ldquo;Net Revenue Interest&rdquo;) of not less than seventy-seven percent (77%) on an 8/8th&rsquo;s basis; and </P>
<P align="justify" style="text-indent: 10%">
(ii) Is free and clear of any (x) security interest, lien, mortgage, pledge, hypothecation, restriction on transfer, including any
conditional sale or other title retention contract or lease in the nature thereof; (y) any filing or agreement to file a financing statement as debtor under the applicable Uniform Commercial Code or any similar statute; and (z) any subordination
arrangement in favor of another person (including artificial persons) (collectively &ldquo;<U>Liens</U>&rdquo;), except for Liens to be released at Seller&rsquo;s expense at or prior to Closing. </P>
<P align="justify">
11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) This Agreement shall be governed by the laws of the State of Oklahoma, without regard to its conflict of law principles. All disputes arising from or relating to this Agreement shall be adjudicated in the courts sitting in Pontotoc County,
Oklahoma and each Party hereby consents to such court&rsquo;s jurisdiction and to such venue.</P>
<P align="justify" style="text-indent: 5%">
(b) EACH OF THE PARTIES HEREBY WAIVES ITS RIGHT TO TRIAL BY JURY IN ANY DISPUTE ARISING HEREUNDER AND CONSENTS TO TRIAL WITHOUT A JURY, AS EVIDENCED BY ITS EXECUTION AND DELIVERY OF THIS AGREEMENT. </P>
<P align="justify">
12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; It is understood and agreed by Seller that this Agreement&rsquo;s existence and substance and Buyer&rsquo;s identity are and shall remain confidential and shall not be disclosed to any third parties, other than those persons who have a
confidential relationship with Buyer (including Buyer&rsquo;s brokers, bankers, attorneys, CPA and other advisors) or Seller or as otherwise required by law, order, rule, regulation or administrative proceeding, or as otherwise contemplated under
this Agreement or as may be necessary in order for Seller to perform its obligations hereunder without delay or additional expense.  Except as permitted in this <U>Section 11</U>,
Seller shall not make or cause to be made any public announcement of, or public disclosure pertaining to, the terms of this Agreement,
the identity of Buyer or the transactions contemplated hereby without the prior
written consent of Buyer. </P>

<P align=center>7 </P>

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<!--$$/page=--><A name=page_8></A>
<P align=justify>13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; After Closing, Seller and Buyer shall execute, acknowledge
and deliver all such further conveyances, assignments, transfer orders, division
orders, notices, assumptions, releases and acquittances pertaining to any of the
Properties or Leases, and such other instruments, and shall take such further
actions as may be necessary or appropriate to assure fully to Buyer or Seller
(including their successors and assigns) as the case may be, that the
transactions described in this Agreement shall be completed. </P>
<P align=justify>14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This Agreement constitutes the entire understanding between
the Parties with respect to the subject matter hereof, superseding all
negotiations, prior discussions and prior agreements and understandings relating
to such subject matter, whether oral or written.</P>
<P align=justify>15.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This Agreement may be executed by Seller and Buyer in any
number of counterparts, each of which shall be deemed an original instrument,
but all of which together shall constitute one and the same instrument, and the
delivery of such counterparts may be via facsimile or electronic mail, which
shall be as effective as hand delivery of original instruments. </P>
<P align=justify>16.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NOTWITHSTANDING ANY TERM OR PROVISION OF THIS AGREEMENT TO
THE CONTRARY, IN NO EVENT SHALL ANY PARTY BE LIABLE FOR ANY CONSEQUENTIAL,
SPECIAL, INDIRECT, EXEMPLARY, PUNITIVE OR SIMILAR DAMAGES OR LOST PROFITS
ARISING OUT OF OR RELATING TO THIS AGREEMENT. </P>
<P align=justify>17.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; From the date of this Agreement until the earlier to occur
of termination of this Agreement, Closing, or February 17, 2014, Seller will not
directly or indirectly solicit or entertain any other offer to acquire the
Leases (or any interest therein) or enter into any negotiation or agreement that
provides for the sale or acquisition of the Leases (or any interest therein) to
any buyer or third party other than Buyer. </P>
<P align=justify>18.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; All notices and communications required or permitted
hereunder shall be in writing and shall be delivered personally or sent by
overnight courier or by certified United States Mail (with return receipt
requested), postage prepaid or by facsimile, addressed as set forth below, and
shall be deemed to have been given when delivered to the addressee in person, or
by courier or certified mail, or transmitted by facsimile, or upon actual
receipt by the addressee after such notice has either been delivered to an
overnight courier or deposited in the United States Mail: </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 width="5%" >&nbsp;</TD>
    <TD align=left width="10%" >To Seller: </TD>
    <TD align=left width="89%">American Petro-Hunter, Inc. </TD></TR>
  <TR vAlign=top>
    <TD align=left width="5%" >&nbsp;</TD>
    <TD align=left width="10%" >&nbsp; </TD>
    <TD align=left width="89%">250 N. Rock Rd. Suite 365 </TD></TR>
  <TR vAlign=top>
    <TD align=left width="5%" >&nbsp;</TD>
    <TD align=left width="10%" >&nbsp; </TD>
    <TD align=left width="89%">Wichita, Kansas 67206 </TD></TR>
  <TR vAlign=top>
    <TD align=left width="5%" >&nbsp;</TD>
    <TD align=left width="10%" >&nbsp; </TD>
    <TD align=left width="89%">Phone: (316) 201-1853 </TD></TR>
  <TR vAlign=top>
    <TD align=left width="5%" >&nbsp;</TD>
    <TD align=left width="10%" >&nbsp; </TD>
    <TD align=left width="89%">Fax: (316) 201-1862 </TD></TR>
  <TR vAlign=top>
    <TD align=left width="5%" >&nbsp;</TD>
    <TD align=left width="10%" >&nbsp; </TD>
    <TD align=left width="89%">Email: rmcintosh@americanpetrohunter.com </TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="10%" >&nbsp; </TD>
    <TD align=left width="89%">&nbsp; </TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="10%" >&nbsp; </TD>
    <TD align=left width="89%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left width="5%" >&nbsp;</TD>
    <TD align=left width="10%" >To Buyer: </TD>
    <TD align=left width="89%">Roberson Oil Company, Inc. </TD></TR>
  <TR vAlign=bottom>
    <TD align=center width="5%" >&nbsp;</TD>
    <TD align=center width="10%" >&nbsp;</TD>
    <TD align=left width="89%" >201 E. Cottage
    Street&nbsp;&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=center width="5%" >&nbsp;</TD>
    <TD align=center width="10%" ></TD>
    <TD align=left width="89%" >Ada, Oklahoma
  74820&nbsp;&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left width="5%" >&nbsp;</TD>
    <TD align=left width="10%" >&nbsp; </TD>
    <TD align=left width="89%">Attention: David Roberson </TD></TR>
  <TR vAlign=bottom>
    <TD align=center width="5%" >&nbsp;</TD>
    <TD align=center width="10%" >&nbsp;</TD>
    <TD align=left width="89%" >Phone: (580)332-6170 </TD></TR>
  <TR vAlign=bottom>
    <TD align=center width="5%" >&nbsp;</TD>
    <TD align=center width="10%" >&nbsp; </TD>
    <TD align=left width="89%" >Fax: (580) 332-6177&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left width="5%" >&nbsp;</TD>
    <TD align=left width="10%" >&nbsp; </TD>
    <TD align=left width="89%">Email: roil11@yahoo.com </TD></TR></TABLE>
<P align=center>8 </P>
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<!--$$/page=--><A name=page_9></A>
<P align=justify style="text-indent: 5%">Either Party may, upon written notice to the other Party,
change the address and person to whom such communications are to be directed.
</P>
<P align=justify style="text-indent: 5%">IN WITNESS WHEREOF, the Parties have executed this Agreement on
the date set forth above, to be effective as of the Effective Date. </P>
<P align=justify style="margin-left: 40%"><B><U>SELLER</U> </B></P>
<P align=justify style="margin-left: 40%"><B>AMERICAN PETRO-HUNTER, INC. </B></P>
<P
align=justify style="margin-left: 50%">By:_____________________________<BR><BR>Name:___________________________<BR><BR>Title:____________________________<BR></P>
<P align=justify style="margin-left: 40%"><B><U>BUYER</U> </B></P>
<P align=justify style="margin-left: 40%"><B>ROBERSON OIL COMPANY, INC. </B></P>
<P
align=justify style="margin-left: 50%">By:_____________________________<BR><BR>Name:___________________________<BR><BR>Title:___________________________<BR></P>
<P align=center>9 </P>
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<DOCUMENT>
<TYPE>EX-21.1
<SEQUENCE>3
<FILENAME>exhibit21-1.htm
<DESCRIPTION>EXHIBIT 21.1
<TEXT>

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<P align=right>Exhibit 21 </P>
<P align=center><B>LIST OF SUBSIDIARIES </B></P>
<P align=justify>None. </P>
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<DOCUMENT>
<TYPE>EX-31.1
<SEQUENCE>4
<FILENAME>exhibit31-1.htm
<DESCRIPTION>EXHIBIT 31.1
<TEXT>

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<P align=right>Exhibit 31 </P>
<P align=center><B>PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL OFFICER&#146;S
CERTIFICATIONS </B><BR><B>PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF
2002 </B><BR></P>
<P align=justify>I, Robert B. McIntosh, certify that: </P>
<P align=justify>1. I have reviewed this report on Form 10-K of American
Petro-Hunter Inc.; </P>
<P align=justify>2. 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>3. 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>4. 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 style="MARGIN-LEFT: 5%"
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)
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 style="MARGIN-LEFT: 5%"
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
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 style="MARGIN-LEFT: 5%"
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)
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 style="MARGIN-LEFT: 5%"
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)
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>5. 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 style="MARGIN-LEFT: 5%"
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) 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 style="MARGIN-LEFT: 5%"
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
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>Dated: April 30, 2014 </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=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>5
<FILENAME>exhibit32-1.htm
<DESCRIPTION>EXHIBIT 32.1
<TEXT>

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<P align=right>Exhibit 32 </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 annual report of American
Petro-Hunter Inc. (the &#147;Company&#148;) on Form 10-K for the period ended December 31,
2013, as filed with the Securities and Exchange Commission on the date hereof
(the &#147;Report&#148;), the undersigned officer of the Company certifies, pursuant to 18
U.S.C. &#167; 1350, as adopted pursuant to &#167; 906 of the Sarbanes-Oxley Act of 2002,
that, to such officer&#146;s knowledge: </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>The Report fully complies with the requirements of
      Section 13(a) or 15(d) of the Securities Exchange Act of 1934;
  and</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(2) </TD>
    <TD>
      <P align=justify>The information contained in the Report fairly presents,
      in all material respects, the financial condition and results of
      operations of the Company.</P></TD></TR></TABLE>
<P align=justify>&nbsp;</P>
<P align=justify>Date: April 30, 2014 </P>
<P align=justify>&nbsp;</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left >&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 </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="50%">and Principal Accounting Officer)
</TD></TR></TABLE><BR>
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