NOTE 8 – OBLIGATION TO ISSUE COMMON STOCK

As of December 31, 2012, the Company was obligated to issue an aggregate of 1,740,698 shares of common stock valued at $337,478 to certain investors and Great Northern Reserve Partners, LLC, a former consultant (Andrew Dahl, CEO of the Company, was principal partner of Great Northern and Reserve Partners).

As of June 30, 2013, the Company has reclassified its obligation to issue an aggregate of 1,385,320 shares of common stock valued at $277,064 to Great Northern Reserve Partners, LLC.(“GNRP”) to accrued liabilities. This reclassification is the result of a Board Resolution passed on July 19, 2013 whereby the Company agreed to repay its debt to GNRP in cash rather than in common stock (see Note 12 – Subsequent Events). 

During the quarter ended June 30, 2013, the Company issued 600,000 shares of common stock valued at $72,000 to certain investors according to the terms of a Convertible Note (see Note 6 – Convertible Debt).

The balance due to certain investors is 2,278 shares of common stock valued at $273 as of June 30, 2013.