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<p style="margin: 0pt; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
unaudited financial statements included herein have been prepared, without audit, pursuant to the rules and regulations of the
Securities and Exchange Commission (“SEC”). The financial statements and notes are presented as permitted on Form
10-Q and do not contain certain information included in the Company’s annual statements and notes. Certain information and
footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted
in the United States of America have been condensed or omitted pursuant to such rules and regulations, although the Company believes
that the disclosures are adequate to make the information presented not misleading. It is suggested that these financial statements
be read in conjunction with the December 31, 2014 Form 10-K filed with the SEC, including the audited financial statements and
the accompanying notes thereto. While management believes the procedures followed in preparing these financial statements are
reasonable, the accuracy of the amounts are in some respects dependent upon the facts that will exist, and procedures that will
be accomplished by the Company later in the year.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">These
unaudited financial statements reflect all adjustments, including normal recurring adjustments which, in the opinion of management,
are necessary to present fairly the operations and cash flows for the periods presented.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company was incorporated under the laws of the state of Colorado on January 22, 2001 under the name Pacific InterMedia, Inc. (“Pacific”).</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
October 17, 2003, Pacific completed a business combination transaction with Raptor Networks Technology, Inc. (“Raptor”),
a closely-held California corporation, through acquisition of all of the issued and outstanding common stock of Raptor in exchange
for authorized but previously unissued restricted common stock of Pacific.  Immediately prior to completion of the acquisition
transaction, Pacific had a total of 4,034,000 shares of its common stock issued and outstanding comprised of 1,034,000 registered
shares held by approximately 25 stockholders and 3,000,000 shares of restricted stock held by Pacific’s founder and sole
officer and director.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">As
a material aspect of the acquisition, Pacific re-acquired and cancelled the 3,000,000 restricted shares as consideration for transfer
of its remaining assets consisting of cash and office equipment to the officer and director, leaving only the registered common
stock, 1,034,000 shares, as all of its issued and outstanding capital stock prior to completion of the Raptor acquisition.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Pursuant
to terms of the acquisition agreement, all of the issued and outstanding common stock of Raptor, 19,161,256 shares, was acquired
by Pacific, share-for-share, in exchange for its authorized but previously unissued common stock.  Upon completion of
the acquisition, Raptor became a wholly owned subsidiary of Pacific and the Raptor shareholders became shareholders of Pacific.  Unless
otherwise indicated, all references in these financial statements to “the Company” include Pacific and its wholly
owned subsidiary, Raptor.  All intercompany transactions have been eliminated in consolidation.  On December
3, 2003, Pacific changed its name to Raptor Networks Technology, Inc.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
acquisition transaction had been treated as a reverse merger, with Raptor considered the accounting acquirer.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company was a provider of integrated high-speed Ethernet switching systems which enable new emerging high bandwidth critical applications.  The
data network market areas that the Company is targeting include video, storage, and Internet Protocol telephony and technology
refresh.  The Company is currently focusing on the United States market.  Principal operations had commenced,
although minimal revenues had been recognized to date.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company’s service contract with a Government prime contractor was almost depleted as of March 31, 2011 and consequently,
revenues for the quarter under review amounted to close to zero.  Taking into account the current status of the U.S.
Government budget and the fact that the Company no longer has any rights in or to its intellectual property, the Company was no
longer able to generate future revenue in that line of business.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
September 2008, the Company shifted its principal operating model from product sales to licensing enabling a reduction in headcount,
footprint and infrastructure that reduced operating expense run rates substantially.  This shift in business model was
not successful as the Company had not generated any revenues from licensing agreements until July 5, 2011, at which time the Company
entered into an agreement with California Capital Equity, LLC (“CCE”) granting CCE an exclusive license (even as to
the Company) leaving the Company without any continuing rights in or to its intellectual property.  In addition, on
August 1, 2011, all of the Company’s remaining assets were sold during a public foreclosure sale.  For further
details on these transactions, see the disclosures in the Forms 8-K filed by the Company on July 11, 2011 and August 4, 2011.  As
a result of the above transactions, the Company classified all of its operations as discontinued operations, except certain general
and administrative expenses related to the public shell company, such as EDGAR fees, audit fees and legal expenses related to
review of public filings and amounts related to the Company’s convertible debt.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">All
of our convertible notes payable have matured and the Company did not pay the principal balances and accrued interest at maturity
or thereafter.  The note holders exercised their right as a secured lender against the Company’s assets and held
a public foreclosure sale of substantially all of the Company’s assets and acquired all of these assets at a price of $100,000,
which price was credited against the outstanding notes on August 1, 2011.  As a result of the public sale on August
1, 2011, the Company retained no material assets with which to continue its operations.  The Company was seeking companies
or businesses with an interest in utilizing the Company as a public shell vehicle and in August 2011 signed a non-binding Letter
of Intent with an interested party for a possible merger.  This transaction was completed in December 2011, when Raptor
Resources Holdings Inc. (formerly Lantis Laser Inc.) acquired an 80.14% controlling equity stake in the Company. In addition to
Raptor Resources Holdings Inc. issuing 5 million shares of their common stock to CCE, they were issued 109,928,311 shares in the
Company to attain a 55% ownership as of December 31, 2011. The Company filed a Form 14C to amend its charter to increase the authorized
shares of common stock of the Company to 500,000,000 shares, and the Company then issued an additional, 79,078,817 shares of common
stock to Raptor Resources Holdings Inc. to bring the total percentage equity owned by Raptor Resources Holdings Inc. to 80.14%,
and simultaneously issued 13,510,752 shares of common stock to CCE in consideration for the conversion of the convertible notes
outstanding to common stock on a post-split basis. The convertible notes previously issued by Raptor Networks Technology, Inc.
were converted after the Company then engaged in a 1:10 reverse stock split. Former shareholders of Raptor Networks Technology,
Inc. (“RPTN”) were reissued 1 share of Mabwe Minerals Inc. for each 10 shares of RPTN. No fractional shares were issued
resulting in a negligible increase to the total outstanding shares on a post-split basis. All shares herein are reflected post-split
in accordance with the Staff Accounting Bulletin.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Effective
with the change in control and conversion of notes and liabilities to equity, the Company entered the exploration stage on June
29, 2012.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
July 18, 2012 Mabwe Minerals Inc. acquired a 49% interest in Mabwe Minerals Zimbabwe (PVT) LTD ("MAB-Z") with the issuance
of 25,000 shares of Raptor Resources Holdings Inc. Series B Preferred Convertible Stock ("Series B Preferred Stock").
Each share of Series B Preferred Stock is convertible into 50 common shares of Raptor Resources Holdings Inc. and 25 common shares
of Mabwe Minerals Inc., both subject to a one year holding period. The remaining 51% ownership in MAB-Z is held by a director
of the Company, Zimbabwean resident, Tapiwa Gurupira (50% ownership), with the remaining portion owned by Asswell Gurupira (1%
ownership). MAB-Z will be the operating arm of Mabwe Minerals Inc., with the Company being the primary beneficiary of all the
activities of MAB-Z. MAB-Z is a Variable Interest Entity (VIE) with respect to guidance under ASC 810-10-5 and is therefore consolidated.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company formally, on September 30, 2012, appointed Tapiwa Gurupira, a 50% stakeholder of MAB-Z as a Director of Mabwe Minerals
Inc.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
November 7, 2012 the principals of MAB-Z received approval from the Government of Zimbabwe to form a new parent holding corporation
for the purpose of holding MAB-Z and its percentage investment stake in WGB Kinsey & Company (“Kinsey”.) The new
company was Mabwe Corporation (PVT) LTD (“MAB-C”.) The new corporation owns 100% of MAB-Z and 25% of Kinsey. The Company
owns a 49% stake in MAB-C the newly formed corporation; the remaining 51% ownership in MAB-C held by a director of the Company,
Zimbabwean resident, Tapiwa Gurupira (50% ownership), with the remaining portion owned by Asswell Gurupira (1% ownership). MAB-C
will be the operating arm of Mabwe Minerals Inc., with the Company being the primary beneficiary of all the activities of MAB-C.
At this time, the Company determined that MAB-C would be a Variable Interest Entity (VIE) with respect to guidance under ASC 810-10-5
and therefore consolidated the results of that entity into the Company’s financial statements.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
January 6, 2014, MAB-Z completed the process to acquire the mineral and metal rights to 110 hectares (272 acres) contiguous with
Dodge Mines.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
December 28, 2014, the Company removed Tapiwa Gurupira, a 50% stakeholder of MAB-Z as a Director of Mabwe Minerals Inc.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">As
fully described in Note 3, on December 28, 2014, the Company deconsolidated MAB-C, a VIE due to the fact that the Company no longer
has the power to direct the activities that most significantly impact MAB-C’s economic performance.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">As
a result of the deconsolidation, the Company exited the exploration stage and became a development stage company.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif; background-color: white">On
March 30, 2015, the Company, entered into a Share Purchase and Asset Sale Agreement (the “SPA”) among Mabwe Minerals,
Fonon Technologies, Inc. ("Fonon Technologies"), Raptor Resources Holdings Inc. and Dmitriy Nikitin pursuant to which
the Company sold an aggregate of 325,241,608 shares of its common stock, to give Fonon Technologies 65% ownership of Mambwe’s'
capital stock on a fully diluted basis in exchange for certain assets of Fonon Technologies valued at $10,401,030 which Fonon
Technologies used in its laser material processing and consumables business.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif; background-color: white">The
Company intends to focus on the business of 3D FUSION™ or 3D Laser Metal Sintering ("3D Laser Metal Printing"),
an emerging additive metal nano powder manufacturing technology with a presence in numerous industries including medical, aerospace
and defense.  3D Laser Metal Printing has diverse applications, including the manufacturing of highly complex geometrics,
fast track prototyping, mold fabrication and repair, with new emerging technically driven applications in high-tech engineering
and electronics.  3D Laser Metal Printing is a layered, digitally driven additive manufacturing process that uses high
quality focused laser energy to fuse metal nano powders into 3D objects. Metal powder is supplied to each customer as a consumable
item after acquiring a Laser 3D Metal System.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif; background-color: white">At
closing, Mabwe transferred all of its assets and liabilities including the 49% ownership interest in MAB-C and all accounts payable
and related party payables to Raptor Resources Holdings Inc. to a company controlled by Al Pietrangelo so the Company will now
engage in the business of 3D Laser Metal Printing.  As a result of this transfer, Mabwe was left with no assets or liabilities
other than the assets acquired in the Fonon Technologies acquisition. Effective upon the closing date of the SPA, Al Pietrangelo,
former President and CEO and sole director, resigned, and prior to such resignation appointed Dmitriy Nikitin to be the sole member
of its Board.  Mabwe now intends to initiate a 1:10 reverse stock split, issue to Fonon Technologies an additional 65,000,000
shares of Mabwe Common Stock to achieve ownership by Fonon Technologies of 97,524,161 shares or 85% of Mabwe's 115,000,000 post-split
issued and outstanding shares of capital stock, which includes a warrant issued to Al Pietrangelo, former President of Mabwe,
to purchase 12,500,000 shares of the Company's common stock for a period of two years at an exercise price of .001 per share.
The 12,500,000 warrants were calculated as part of the purchase price, however will not be issued until the reverse stock split
becomes effective. As a result of the March 30, 2015 transaction with Fonon Technologies, all operations related to the exploration
stage business of Mabwe has been reflected as discontinued operations.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif; background-color: white">The
potential conversion of all outstanding warrants and convertible Preferred Series B shares of Raptor Resources Holdings, Inc.,
in the amount of 35,900,000 would put the Company in an oversubscribed position resulting in a potential over issuance where the
total number of shares issued and outstanding would be are 501,600,000, which is 1,600,000 shares greater than the authorized
limit of 500,000,000.  As a result of the common stock equivalents exceeding the authorized limit, the 1,600,000 warrants
have become a derivative liability as they do not meet the requirements for equity classification. The Company is willing to cover
the issuance of shares from stock previously issued to Fonon Technologies, Inc. under the March 30, 2015 SPA to fulfill this obligation
if there were not enough shares authorized to avoid any securities violations</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><u>Presentation
as a Going Concern</u></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United
States of America, which contemplate continuation of the Company as a going concern.  The Company has a loss from continuing
operations of $42,405 and $86,875 for the three months ended March 31, 2015 and 2014, respectively.  The Company also
has an accumulated deficit of $88,339,776 and a working capital deficit of $1,220,642  at March 31, 2015.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
September 2008, the Company shifted its principal operating model from product sales to licensing enabling a reduction in headcount,
footprint and infrastructure that reduced operating expense run rates substantially.  This shift in business model has
not been successful as the Company had not generated any revenues from licensing agreements until July 5, 2011, at which time
the Company entered into an agreement with California Capital Equity, LLC (“CCE”) granting CCE an exclusive license
(even as to the Company) leaving the Company without any continuing rights in or to its intellectual property.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
August 1, 2011 CCE exercised its right as a secured lender against the Company’s assets since the Company was unable to
pay its outstanding notes that were due and payable and held a public foreclosure sale of substantially all of the Company’s
assets. CCE acquired all of these assets at a price of $100,000, which price was credited against the outstanding notes.  As
a result of the public sale on August 1, 2011, the Company retained no material assets with which to continue its operations.  The
Company sought companies or businesses with an interest in utilizing the Company as a public shell vehicle and in August 2011
signed a non-binding Letter of Intent with Raptor Resources Holdings Inc. (formerly Lantis Laser Inc. (OTCQB: RRHI) which on June
28, 2012 consummated the acquisition of an 80.14% controlling equity interest in the Company. Raptor Resources Holdings Inc. issued
5,000,000 shares of their common stock to CCE and itself received 10,992,831 (post reverse split adjusted) shares in the Company
to attain a 55.52% ownership as of June 28, 2012. The Company filed a Schedule 14C that was effective June 28, 2012 to amend its
charter to increase the authorized shares of common stock of the Company to 500,000,000 shares. The Company issued 79,078,817
additional shares of common stock to Raptor Resources Holdings Inc. to bring the total percentage equity owned by Raptor Resources
Holdings Inc. to 80.14%, and issued 13,510,752 shares of common stock to CCE in consideration of the conversion of the convertible
notes outstanding to CCE. These convertible notes previously issued to CCE by Raptor Networks Technology, Inc. were converted
after the Company engaged in a 1:10 reverse stock split.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Simultaneous
with the reverse stock split the company was renamed Mabwe Minerals Inc. (“Mabwe” or “the Company”.) Former
shareholders of Raptor Networks Technology, Inc. (“RPTN”) were reissued one share of Mabwe Minerals Inc. for each
10 shares of RPTN. No fractional shares were issued resulting in a negligible increase to the total outstanding shares on a post-split
basis. All shares herein are reflected post-split in accordance with the Staff Accounting Bulletin.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Prior
to deconsolidation, the Company had classified all of the expenses associated with extraction as period expenses.  MAB-Z
has yet to realize its first shipment of barite and to date has incurred significant cost relative to a startup mining company.
Additionally, the incremental expense of either hiring an additional staff member or contracting with an outside party to have
our lots certified and qualified in lots and specific grades of materials would be significant and cost prohibitive. No one in
the MAB-Z draws a regular salary and they are not in the position to bring on a staff member or incur the expense of routinely
contracting with a qualified geologist or an otherwise expert in the field of classification and certification of barite as related
to certain grades of qualities. Overall capital investment to this point has been substantial and until MAB-Z is producing positive
operational cash flow it is the intent of management to minimize cash outflow to only critical expenditures.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Additionally,
the grade of mineral that MAB-Z currently has stockpiled is not the desired grade of Steinbock, our master distributer and though
we believe that the mineral in its current form to be a saleable grade of the commodity MAB-Z neither has the current capacity
to further refine the mineral to an acceptable grade nor the ability to find another buyer for the material.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Corporations
established under Zimbabwean law, must have a controlling ownership interest held by domestic parties. As a result of this statute,
51% of MAB-C was owned by Tapiwa and Asswell Gurupira (domestic residents of Zimbabwe), and the remaining 49% held by the Company.
MAB-C owned 100% of MAB-Z a domestic Zimbabwe corporation. MAB-Z was the owner of the majority of the Company’s assets and
obligor of a majority of the Company’s liabilities on a consolidated basis. In late 2013, the ownership of the mining rights
on the Dodge Mines came into question, with certain challengers of these rights commencing litigation against MAB-Z. Despite holding
legal certificates of ownership of the Dodge Mines claims that MAB-Z had, the legal system in Zimbabwe is not as clear cut as
to the ownership. Several of these lawsuits have been heard, with MAB-Z being victorious on each and every count. However, appeals
continue to be filed, and the outcome of these appeals are not known, and with the Dodge Mine claims being in question, it has
delayed exploration and future revenue streams from the barite that these claims are said to contain. When the Company entereded
into this industry in Zimbabwe with the clear title to these Dodge Mine claims, the economic conditions in Zimbabwe were not as
poor as they are today, and the relationship between the Company and the Gurupira’s was also on much better terms. In fact,
Tapiwa up until December 28, 2014, was a director of the Company.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
2012, despite not having voting control of MAB-C, the entire five member board of directors of MAB-C were acting as a cohesive
unit in the best interest of the Company, and  the Company had met both conditions of the VIE model, and therefore recognized
MAB-C as a VIE and consolidated MAB-C into the Company’s financial statements under ASC 810. During late 2014, culminating
on December 28, 2014, it became evident to the Company, that the relationship with the board members located in Africa and the
board members located in the USA for MAB-C had soured. The cohesiveness that embodied the prior two years was not there, and the
funding of the operations in Africa had stopped. Essentially, the power to direct the activities that most significantly impact
MAB-C’s economic performance had terminated. As of December 28, 2014, the Company had considered that the investment of
MAB-C was no longer a VIE, and thus would be considered an equity investment under ASC 970-323.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
December 28, 2014, the Company deconsolidated MAB-C, a VIE due to the fact that the Company no longer has the power to direct
the activities that most significantly impact MAB-C’s economic performance.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On March 30, 2015, the Company,
entered into the SPA whereby transferred assets of Fonon Technologies valued at $10,401,030 allows the Company to focus operational
efforts in the laser material processing and consumables business.  The Company’s business of 3D Laser Metal Printing,
an emerging additive metal nano powder manufacturing technology with a presence in numerous industries with diverse applications,
including the manufacturing of highly complex geometrics, fast track prototyping, mold fabrication and repair, with new emerging
technically driven applications in high-tech engineering and electronics.  3D Laser Metal Printing is a layered, digitally
driven additive manufacturing process that uses high quality focused laser energy to fuse metal nano powders into 3D objects.
Metal powder is supplied to each customer as a consumable item after acquiring a Laser 3D Metal System.</font></p>
<p style="margin: 0pt; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">With
the acquisition of MAB-Z, the chief revenue producing asset (the mining rights of the Dodge Mine Blocks 1-6 and the associated
note payable) was transferred from a fully-consolidated subsidiary of Raptor Resources Holdings Inc. TAG-Z to MAB-Z, at the time
of the transfer, a fully-consolidated variable interest entity of the Company, which is a majority-owned subsidiary of Raptor
Resources Holdings Inc. The value transferred to MAB-Z for the mining rights had a book value of $433,000 offset by a note payable
of $57,000 at the time of transfer. This value of $376,000 in related party loans was further offset by net payment of expenses
incurred by and paid on behalf of consolidating parent Raptor Resources Holdings Inc. Though the balance in the related party
payable is nearly identical to that of the Dodge Mine Blocks Net asset there have been several invoices flow through the account
in either direction. Subsequent to this initial transaction, there have been several transactions flowing through MAB-Z and MAB-C
to and from Raptor Resources Holdings Inc. and there subsidiary TAG Minerals and TAG-Z. On December 28, 2014, the date of deconsolidation,
$426,456 was due to these related entities by MAB-C/MAB-Z.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Additionally,
the Company has a payable due to Raptor Resources Holdings Inc. of $26,228 as of December 31, 2014 for various expenses paid on
behalf of the Company by Raptor Resources Holdings Inc.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
November 27, 2013 the Company paid $30,000 as a year-end bonus to Lion Capital Group LLC (“LION”), a Wyoming LLC.
Lion is equally owned by Tapiwa Gurupira, Al Pietrangelo, Dean Harrison and J. Louis Schlegel IV, all of whom were directors and/or
officers of MAB-C.</font></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Effective
July 19, 2013 majority owner Raptor Resources Holdings Inc. issued 75,000 Preferred Series B to LION. This was awarded for the
milestone achievement of obtaining the EIA license which provided for the commencement of mining operations at Dodge Mines.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Prior to deconsolidation as discussed in Note 3, for MAB-C, effective
July 26, 2012 MAB-Z entered into a one year financing short term loan agreement with OVERSEAS TRADE AND FINANCING LIMITED (“OTF”)
for an amount of $40,000 with accrued interest at an original rate of 12%. The balance with interest and fees of $48,026 ($8,026)
of accrued interest which is included in accounts payable and accrued expenses) was due at December 31, 2013. Under the original
terms of the contract the loan was to have been fully repaid within 360 days of the effective date. Failure to pay as prescribed
or duly extend loan period will result in the accrual of late charges at a rate of 6% per annum. Extension and drawdown fees are
1% and 2%, respectively. OTF is owned and controlled by a former director of MAB-C and was recently registered with the Reserve
Bank of Zimbabwe, External Loans Co-coordinating Committee. In accordance with the newly registered loan, the interest rate will
now be 8% per annum, and no default rate is in place.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On April 5, 2014, MAB-Z, received confirmation of its registration
and acceptance of terms for the loan from OTF in the amount of $40,000 and 8% per annum due in 360 days. As of December 31, 2014
the balance with interest and fees was $48,990 ($8,990 of accrued interest) and is included in MAB-C’s records.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On April 28, 2014 Woolmoon Investments advanced MAB-Z $10,000 for
current working capital at a rate 12% per annum.  During July, 2014 Woolmoon Investments advanced MAB-Z $1,000.  As
of December 31, 2014 the balance with interest and fees was $11,859 ($859 of accrued interest) and is included in MAB-C’s
records.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Prior to deconsolidation as discussed in Note 3, for MAB-C, on May
2, 2014 MAB-Z entered into an open ended loan agreement with Gary Booth.  The Company received an advance of $10,000
for working capital and short-term cash requirement which carries an interest rate of 12%.  As of December 31, 2014 the
balance due was $10,810 and is included in MAB-C’s records.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On July 31, 2014 MAB-Z entered into and open ended loan agreement
with Antony Kinsey and Kevin Hegarty.  The Company received an advance of $20,000 for working capital and short-term
cash requirement which carries an interest rate of 12%.  As of December 31, 2014 the balance due was $21,027 and was
included in MAB-C’s records.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In July 2014 advance payments were made by Graham Roberts on behalf
of MAB-Z in the amount of $6,000.  This loan is currently undocumented. Interest was being accrued at an annual rate
of 12%.  The balance due without accrued interest was $6,000 and was included in MAB-C’s records.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In October 2014, MAB-Z, was advanced $2,500 from a group known as
the Advisory Board.  This loan was due on demand and was accruing interest at an annual rate of 12%. The balance at December
31, 2014 was $2,549 and was included in MAB-C’s records.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On December 10, 2014, MAB-Z, received an advance of $40,000 from
Wimfair Investments (PVT) Ltd. t/a Derbyshire Stone. This loan was due on demand and was accruing interest at an annual rate of
12%. The balance at December 31, 2014 was $40,015 and wass included in MAB-Z’s records.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Prior to deconsolidation as discussed in Note 3, for MAB-C, effective
July 18, 2012, the Company acquired a 49% interest of Mabwe Minerals Zimbabwe (PVT) LTD (MAB-Z) for 25,000 shares of Series B Convertible
Preferred Stock of Raptor Resources Holdings Inc. The value of this transaction was $25,000.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">MAB – Z was essentially a newly formed entity. The $25,000
was recorded as Goodwill.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="width: 89%"><font style="font-size: 10pt">Net Assets Purchased</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 8%; text-align: right"> </td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Goodwill</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">25,000</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Purchase Price</font></td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">25,000</font></td>
<td> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As fully described in Note 3, on December 28, 2014, the Company
deconsolidated MAB-C, a VIE due to the fact that the Company no longer had the power to direct the activities that most significantly
impacted MAB-C’s economic performance.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><u>Fonon Asset purchase</u></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On March 30<font style="background-color: white">,
2015, the Company, entered into a Share Purchase and Asset Sale Agreement (the “SPA”) among Mabwe Minerals, Fonon Technologies,
Raptor Resources Holdings Inc. and Dmitriy Nikitin pursuant to which the Company sold an aggregate of 325,241,608 shares of its
common stock, to give Fonon Technologies 65% ownership of all of Mabwe’s capital stock on a fully diluted basis in exchange
for certain assets of Fonon Technologies valued at $10,401,030 which Fonon Technologies used in its laser material processing and
consumables business.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="background-color: white">The Company
intends to focus on the business of 3D Laser Metal Printing, an emerging additive metal nano powder manufacturing technology with
a presence in numerous industries including medical, aerospace and defense.  3D Laser Metal Printing has diverse applications,
including the manufacturing of highly complex geometrics, fast track prototyping, mold fabrication and repair, with new emerging
technically driven applications in high-tech engineering and electronics.  3D Laser Metal Printing is a layered, digitally
driven additive manufacturing process that uses high quality focused laser energy to fuse metal nano powders into 3D objects. Metal
powder is supplied to each customer as a consumable item after acquiring a Laser 3D Metal System.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td><font style="font-size: 10pt"><b>Fonon Technologies, Inc. asset purchase for MBMI stock</b></font></td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 89%"><font style="font-size: 10pt">Finish goods and work in process</font></td>
<td style="width: 1%; text-align: right"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 8%; text-align: right"><font style="font-size: 10pt">1,220,642</font></td>
<td nowrap="nowrap" style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Fixed assets - demo and trade show equipment</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">1,439,273</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Fixed assets - office furniture</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">92,789</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Software - infrastructure, operational and web development</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">364,042</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Software for machines for resale</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">1,176,284</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Other intangibles - customer database</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">676,000</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Other intangibles - trademarks</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">35,000</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Other intangibles - design and documentation</font></td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">5,397,000</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Total non-cash asset purchase</font></td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">10,401,030</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Stock issued for purchase of assets from Fonon Technologies, Inc. (at par)</font></td>
<td style="text-align: right"> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">325,242</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Value of warrants issued to Al Pietrangeo</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">374,957</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Additional paid in capital</font></td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">9,700,831</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Total non-cash consideration</font></td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">10,401,030</font></td>
<td nowrap="nowrap"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><br />
As part of the SPA, former CEO, Al Pietrangelo, was granted 12,500,000 warrants exercisable for two years at an exercise price
of $0.001 per share. These warrants will be granted upon the effective reverse stock split, however, they have been included in
the Fonon Technologies acquisition price.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">After to deconsolidation as discussed in Note 3, for MAB-C, as of
March 31, 2015 and December 31, 2014, the Company had no value in mining rights.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Following
is a reconciliation of the aggregate reclamation liability (ARO) associated with MAB-Z's reclamation plan for our mining projects:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>December 31,</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>December 31,</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>2014</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>2013</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 78%"><font style="font-size: 10pt">Long-term reclamation liability — beginning of period</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 8%; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%; text-align: right"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 8%; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Additional obligations incurred</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">83,350</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Accretion of reclamation liability</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Long-term reclamation liability — end of period</font></td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">83,350</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Following
is a reconciliation of the aggregate retirement obligation asset associated with our reclamation plan for our mining projects:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>December 31,</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>December 31,</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>2014</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>2013</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 78%"><font style="font-size: 10pt">Retirement obligation asset — beginning of period</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 8%; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%; text-align: right"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 8%; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Additional obligations incurred</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">83,350</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Amortization of retirement obligation asset</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Retirement obligation asset — end of period</font></td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">83,350</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><u>Preferred Convertible Series B Stock (RRHI)</u></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of March 31, 2015, Raptor Resources Holdings Inc. (“RRHI”)
had authorized 2,500,000 shares of Preferred Convertible Series B Stock. Each share of Preferred Convertible Series B Stock is
convertible into 50 shares of MBMI common stock in addition to 25 shares of its own common stock.  Prior to the SPA RRHI
held a majority of the Company’s outstanding and issued common shares on a fully diluted basis.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the three months ended March 31, 2015, there were no sales
of RRHI Preferred Convertible Series B Stock.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the three months ended March 31, 2015, no shares of RRHI
Preferred Convertible Series B Stock were converted to shares of common stock in MBMI.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of March 31, 2015, RRHI had 1,372,000 shares of RRHI Preferred
Convertible Series B Stock issued and outstanding which if converted would result in the issuance of 34,300,000 common shares of
MBMI.  There have been no conversions RRHI Preferred Convertible Series B Stock as of March 31, 2015.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><u>Common Stock</u></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company’s authorized capital consists of 500,000,000 shares
of common stock, par value $0.001 per share and 5,000,000 shares of preferred stock, no par value per share.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="background-color: white">During the three months ended
March 31, 2015 the Company issued 325,241,608 shares of common stock to bring the total issued and outstanding shares to 465,700,000.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="background-color: white">The potential
conversion of all outstanding warrants and convertible Preferred Series B shares of Raptor Resources Holdings, Inc., in the amount
of 35,900,000 would put the Company in an oversubscribed position resulting in a potential over issuance where the total number
of shares issued and outstanding would be are 501,600,000, which is 1,600,000 shares greater than the authorized limit of 500,000,000.  As
a result of the common stock equivalents exceeding the authorized limit, the 1,600,000 warrants have become a derivative liability
as they do not meet the requirements for equity classification. The Company is willing to cover the issuance of shares from stock
previously issued to Fonon Technologies, Inc. under the March 30, 2015 SPA to fulfill this obligation if there were not enough
shares authorized to avoid any securities violations.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the year ended December 31, 2014 the Company issued 110,000
shares of common stock for investor relations and accounting services rendered and to be rendered at a value of $7,300.  The
Company also sold through private placement 100,000 common shares for a cash price of $5,000 ($.05/share.) The controlling interest
of Raptor Resources Holdings Inc. was diluted to 64.13% based on new issuances of common stock that year.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the year ended December 31, 2013, the Company issued 6,677,642
shares of stock through private placement for cash in the amount of $880,500. 3,105,000 warrants were issued with these placements,
exercisable for 1 year at a price of $.15 per share. The Company also issued 1,590,000 shares of its common stock for accounting,
promotional and public relation services rendered and to be rendered at a value of $187,487. The controlling interest of Raptor
Resources Holdings Inc. was diluted to 64.22% based on new issuances of common stock that year.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the year ended December 31, 2012, the Company issued: 5,000,000
shares of common stock through private placement for cash in the amount of $250,000; 5,000,000 shares of common stock valued at
$500,000 to purchase for MAB-C, a 25% ownership in Kinsey per the Equity Exchange Agreement; 6,590,000 shares of common stock valued
at $152,375 for services rendered and to be rendered; and 3,000,000 shares of common stock to two former officers of Raptor Resources
Holdings Inc. to offset the related party debt outstanding with Raptor Resources Holdings Inc. The controlling interest percentage
of Raptor Resources Holdings Inc, was 68.25%.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During 2012, the Company executed a 1:10 reverse stock split where
every ten (10) shares of stock was converted to one (1) share. No fractional shares were issued resulting in a negligible increase
to the total outstanding shares on a post-split basis. All shares are reflected on a post-split basis unless indicated.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On June 29, 2012, the Company issued 79,078,817 shares of common
stock to Raptor Resources Holdings Inc. to bring the total percentage equity owned by Raptor Resources Holdings Inc. to 80.14%,
and simultaneously issued 13,510,752 shares of common stock to CCE in consideration for the conversion of the convertible notes
outstanding to common stock. During 2011, the Company issued 10,992,831 shares of common stock (on a post-split basis) to Raptor
Resources Holdings Inc.(f/k/a Lantis Laser Inc.) representing 55% of the Company. The transaction was treated as an equity transaction,
and Raptor Resources Holdings Inc. issued 5,000,000 shares of their common stock to CCE in exchange for the guaranty to convert
their debt to common stock of the Company post-split, upon the Company’s successful amendment to their charter which enabled
them to increase the authorized shares to 500,000,000 allowing the issuance to CCE of 13,510,752 shares of the Company’s
stock.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of March 31, 2015, the Company has 465,700,000 shares issued
and outstanding.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company computes and records taxes payable based upon determination
of taxable income which is different from pre-tax financial statement income.  Such differences arise from the reporting
of financial statement amounts in different periods for tax purposes.  The timing differences are a result of different
accounting methods being used for financial and tax reporting.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company’s total deferred tax assets and deferred tax liabilities
were as follows at March 31, 2015 and December 31, 2014:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt">March 31, 2015</font></td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt">December 31, 2014</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 10pt">Deferred tax assets:</font></td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 78%"><font style="font-size: 10pt">Non-benefited  tax losses and credits</font></td>
<td style="width: 1%; text-align: right"> </td>
<td style="width: 1%; border-bottom: black 1.5pt solid"><font style="font-size: 10pt">$</font></td>
<td style="width: 8%; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">28,038,325</font></td>
<td nowrap="nowrap" style="width: 1%"> </td>
<td style="width: 1%; text-align: right"> </td>
<td style="width: 1%; border-bottom: black 1.5pt solid"><font style="font-size: 10pt">$</font></td>
<td style="width: 8%; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">28,024,755</font></td>
<td nowrap="nowrap" style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Total deferred tax assets</font></td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">28,038,325</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">28,024,755</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Deferred tax liabilities</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Net book value of assets</font></td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Total deferred tax liabilities</font></td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Total net deferred tax assets</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">28,038,325</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">28,024,755</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Valuation allowance</font></td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">(28,038,325</font></td>
<td nowrap="nowrap"><font style="font-size: 10pt">)</font></td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">(28,024,755</font></td>
<td nowrap="nowrap"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Net deferred tax assets</font></td>
<td style="text-align: right"> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><br />
A valuation allowance has been established against the realization of the deferred tax assets since the Company has determined
that the operating loss carryforwards may not be realized. The Company has federal and state net operating loss carryforwards of
approximately $46,150,704 and $46,137,134, respectively expiring between 2026 and 2035, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Internal Revenue Code Section 382 imposes limitation on our ability
to utilize net operating losses if we experience an ownership change and for the NOL’s acquired in the acquisitions of subsidiaries.  An
ownership change may result from transactions increasing the ownership percentage of 5% or greater stockholders in the stock of
the corporation by more than 50 percentage points over a three-year period.  The value of the stock at the time of an
ownership change is multiplied by the applicable long-term tax exempt interest rate to calculate the annual limitation.  Any
unused annual limitation may be carried over to later years. The Company in June 2012 experienced a greater than 50% ownership
change, so the rules of IRC section 382 apply.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">At March 31, 2015 and December 31, 2014, the amount of gross unrecognized
tax benefits before valuation allowances and the amount that would favorably affect the effective income tax rate in future periods
after valuation allowances were zero.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><u>Land Lease Agreement</u></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Prior to deconsolidation as discussed in Note 3, on May 13, 2013,
MAB-Z entered into a 20 year agreement with Ettie Magadzire, owner of Palm Grove Farm whereby rights of unrestricted access to
claims of MAB-Z were granted (“Land Lease Agreement”). Magadzire possessing surface rights to the property on which
the claims were located under this agreement conveyed the right of use for MAB-Z to explore, test, sample, verify, assess the full
nature and extent of the deposit, and to develop the mineral resources of aforesaid claims. In consideration for those rights MAB-Z
agreed to pay to Magadzire $70,000 payable quarterly in arrears after the first annual installment is paid in the following manner:
(a) $17,500 payable in $5,000 cash (paid), $5,000 for a vehicle (paid by officer of MAB-Z and included in related party payable)
and $7,500 in fuel (paid); (b) $17,500 payable six months after commencement of mining operations at the Claims; (c) $17,500 payable
nine months after commencement of mining operations; and (d) $17,500 payable one-year after commencement of mining operations.
Then payments by MAB-Z were to be made in quarterly installments of $17,500 (or $70,000 per year). The agreement had a total value
of $1,400,000.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><u>Letter of Credit</u></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Prior to deconsolidation as discussed in Note 3, on February 8,
2013, MAB-Z was issued as beneficiary an irrevocable documentary letter of credit from Baker Hughes Oilfield Operations, Inc. in
the documentary credit amount of $3,000,000 per lot of crude barite (or a total of $9,000,000) to pay for shipments from Beira,
Mozambique to any U.S. Gulf port of three lots of barite meeting the specifications set forth in the letter of credit. The first
shipment was to be made between June 1, 2013 and August 31, 2013, the second shipment was to be made between September 1, 2013
and November 30, 2013 and the third shipment must be made between December 1, 2013 and March 1, 2014. MAB-Z was discussing with
Baker Hughes Oilfield Operations revised shipment dates in light of the delays experienced in obtaining the Environmental Impact
Assessment Certificate dated July 4, 2013 from the Environmental Management Agency of Zimbabwe to allow it to commence mining operations
for barite. No update on these discussions is available as of the date of this filing.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On April 15, 2015 20,000 shares of Raptor Resources Holdings Inc.
(RRHI) Preferred Convertible Series B Stock were converted. This stock is convertible into 50 shares of RRHI common stock and 25
shares of Mabwe Minerals Inc. common stock after a one year holding period is met.  The issuance of these 500,000 shares
of the Company’s common stock are pending issuance by the transfer agent and have yet to be issued and are not reflected
in any of the issued and outstanding figures in this report.  As a result of this conversion the issued and outstanding
shares of Company stock would be 466,200,000.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Effective April 16, 2015 the Company received approval from the
State of Wyoming for a trade name change to do business as "Fonon Corporation". </p>
<p style="margin: 0pt; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><u>Exploration
Stage Company/Development Stage Company</u></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">As
of June 29, 2012 the Company moved from an Operating Stage Company to an Exploration Stage Company as a result of the execution
of the change in ownership control to the majority controlling interest by Raptor Resources Holdings Inc. This transaction was
FINRA deemed effective June 28, 2012 and exploration stage activities commenced on June 29, 2012. In accordance with ASC 915 the
Company will be reporting and disclosing additional information in addition to reporting and disclosure requirements otherwise
prepared in accordance with U.S. generally accepted accounting principles (GAAP).</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company had adopted the provisions of ASC 810-10-5, “Consolidation of VIEs”. ASC 810-10-5 requires a VIE to be consolidated
by a company if that company is subject to a majority of the risk of loss for the VIE or is entitled to receive a majority of
the VIEs residual returns. As fully described in Note 3, on December 28, 2014, the Company deconsolidated MAB-C, a VIE due to
the fact that the Company no longer has the power to direct the activities that most significantly impact MAB-C’s economic
performance.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">As
a result of the deconsolidation, the Company exited the exploration stage and became a development stage company.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif; background-color: white">With
the March 30, 2015 the SPA whereby the transfer of performing assets by Fonon Technologies into the Company valued at $10,401,030
allows the Company to focus operational efforts in the laser material processing and consumables business.  The Company’s
business of 3D Laser Metal Printing, an emerging additive metal nano powder manufacturing technology with a presence in numerous
industries with diverse applications, including the manufacturing of highly complex geometrics, fast track prototyping, mold fabrication
and repair, with new emerging technically driven applications in high-tech engineering and electronics.  3D Laser Metal
Printing is a layered, digitally driven additive manufacturing process that uses high quality focused laser energy to fuse metal
nano powders into 3D objects. Metal powder is supplied to each customer as a consumable item after acquiring a Laser 3D Metal
System.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><u>Principles
of Consolidation</u></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Mabwe
Minerals Inc. on July 18, 2012, acquired a 49% interest in Mabwe Minerals Zimbabwe (PVT) LTD (MAB-Z) through the issuance of 25,000
shares of Raptor Resources Holdings Inc. Series B Preferred Convertible Stock.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Each
share of the Series B Preferred Convertible Stock is convertible into 50 common shares of Raptor Resources Holdings Inc. and 25
common shares of Mabwe Minerals Inc. both subject to a 1 year holding period. The remaining 51% ownership in MAB-Z is held by
a Director of the Company, a Zimbabwe resident, Tapiwa Gurupira (50%) with the remaining portion owned by Asswell Gurupira (1%).
MAB-Z will be the operating arm of Mabwe Minerals, Inc., with the Company being the primary beneficiary of all the activities
of its subsidiary, Mabwe Minerals Zimbabwe (PVT) LTD.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
November 7, 2012 the principals of MAB-Z received approval from the Government of Zimbabwe to form a new parent holding corporation
for the purpose of holding MAB-Z and its percentage investment stake in WGB Kinsey & Company (“Kinsey”.) The new
company was Mabwe Corporation (PVT) LTD (“MAB-C”.) The new corporation owns 100% of MAB-Z and 25% of Kinsey, which
as of October 1, 2014, has been returned to Kinsey, as fully described in Note 3. The Company owns a 49% stake in MAB-C the newly
formed corporation; the remaining 51% ownership in MAB-C held by a former director of the Company, Zimbabwean resident, Tapiwa
Gurupira (50% ownership), with the remaining portion owned by Asswell Gurupira (1% ownership). MAB-C up through December 28, 2014,
was the operating arm of Mabwe Minerals Inc., with the Company being the primary beneficiary of all the activities of MAB-C.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">MAB-C
was a Variable Interest Entity (VIE) with respect to guidance under ASC 810-10-5 and was therefore consolidated.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">As
fully described in Note 3, on December 28, 2014, the Company deconsolidated MAB-C, a VIE due to the fact that the Company no longer
has the power to direct the activities that most significantly impact MAB-C’s economic performance.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif; background-color: white">Pursuant
to the March 30, 2015 SPA whereby the simultaneous asset purchase, the transfer of prior Company assets and liabilities to a company
controlled by Al Pietrangelo and the Company’s direction to engage in the business of 3D Metal Laser Printing as well as
the effective upon the closing date of the SPA, Al Pietrangelo, former President and CEO and sole director, resigned, and prior
to such resignation appointed Dmitriy Nikitin to be the sole member of its Board there is no subsidiary parent arrangement.  The
transferred assets of Fonon Technologies valued at $10,401,030 allow the Company to focus operational efforts in the laser material
processing business.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><u>Business
Combination</u></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
March 30<font style="background-color: white">, 2015, the Company, entered into a Share Purchase and Asset Sale Agreement (the
“SPA”) among Mabwe Minerals, Fonon Technologies, Raptor Resources Holdings Inc. and Dmitriy Nikitin pursuant to which
the Company sold an aggregate of 325,241,608 shares of its common stock, to give Fonon Technologies 65% ownership of Mabwe’s
capital stock on a fully diluted basis in exchange for certain assets of Fonon Technologies valued at $10,401,030 which Fonon
Technologies used in its laser material processing and consumables business.</font></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif; background-color: white">The
Company has reviewed the SPA for consideration as a business combination and for the application of pushdown accounting, In is
review of this transaction the Company considered </font><font style="font: 10pt Times New Roman, Times, Serif">ASU No. 2014-17,
“Business Combination”  and ASC 805-50 “Business Combinations: Related Issues” sections 25 “Recognition”
and 30 “Initial Management”.  As prescribed in ASC 805-50-25-1 initial recognition of the purchase of assets
for equity interest consideration shall be measured at the date of acquisition. The entities of the transaction were not under
common control.      </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company has considered ASC 805-50-30 “Business Combinations: Related Issues - Initial Management” assets purchased
rather than a business.  Under this provision the assets purchased are recognized at the cost to the acquiring entity.  In
this case, the consideration of non-cash equity interest which was given in exchange for the assets is based upon the fair value
of the assets acquired because it is more reliability measured.  This reliability is based on the uncertainty of true
stock value subsequent to planned reverse spilt and the issuance of an additional 65,000,000 post-split shares of common stock
to Fonon Technologies, Inc.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
November 2014, the FASB issued ASU No. 2014-17, “Business Combination.” The provisions of ASU No. 2014-17 require
management to determining whether and at what threshold an acquiree (acquired entity) can reflect the acquirer’s accounting
and reporting basis (pushdown accounting) in its separate financial statements.  Under the SPA the acquirees’
acquisition was of a group of performing assets and not a disparate company.  As a result of the deconsolidation on
December 28, 2014, the basis of account prior to and subsequently are not materially different.  As result of the SPA,
the Company, <font style="background-color: white">Fonon Corporation will focus on the business of 3D Laser Metal Printing.  The
Company has not elected to apply </font>pushdown accounting in its separate financial statements upon occurrence of this event.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><u>Cash
and Cash Equivalents</u></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company considers all highly liquid investments with a maturity of three months or less when acquired to be cash equivalents.
The Company places its cash with a high credit quality financial institution. The Company’s accounts at this institution
are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><u>Use
of Estimates</u></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts 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.  Significant
estimates made by management include the recoverability of long-lived assets, the valuation of stock-based compensation and the
valuation allowance of the deferred tax asset.  Actual results could differ from those estimates.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><u>Property
and Equipment</u></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Property
and equipment are recorded at fair value at the time of the SPA and are presented less accumulated depreciation.   Depreciation
is computed using the straight-line method over the assets estimated useful lives. Repairs and maintenance of a routine nature
are charged as incurred.  Significant renewals and betterments are capitalized.  At the time of retirement
or other disposition of property and equipment, the cost and accumulated depreciation are removed from the accounts and any resulting
gain or loss is reflected in the statements of operations.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><u>Revenue
Recognition</u></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Prior
to the change in business, the Company recorded revenues when the following criteria were met: (i) persuasive evidence of an arrangement
exists; (ii) delivery has occurred; (iii) the price to the customer is fixed or determinable; and (iv) collection of the sales
price is reasonably assured.  Delivery occurs when goods are shipped and title and risk of loss have passed to the customer.  Revenue
is deferred in all instances where the earnings process is incomplete.  The Company recognized revenue from distribution
sales when all contingencies were satisfied and upon persuasive evidence of a sale to end users until such time that historical
sell through ratios had been developed.  Payments received before all of the relevant criteria for revenue recognition
were satisfied were recorded as deferred revenue in the accompanying balance sheets.  Revenues and costs of revenues
from consulting contracts were recognized during the period in which the service was performed.  All revenues were reported
net of any sales discounts or taxes.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Since
the Company entered the Exploration Stage and most recently, the Development Stage, no revenues have been recorded.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><u>Unearned
Revenue</u></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Prior
to deconsolidation as discussed in Note 3, when the Company was in the Exploration Stage, MAB-Z had yet to realize its first shipment
of barite. This shipment to an agreed upon FOB point is the primary hurdle in our recognizing revenue by completing the earning
process on the purchase order that was submitted by Steinbock in the third quarter of 2013. A second purchase order was issued
by Steinbock in December of 2013 for 10,000 tons of barite but has not been billed by MAB-Z. This delay was due to MAB-Z’s
desire to refine the current mineral extraction to a sufficiently high grade of barite to obtain a higher market price. Further
delaying the process and adding cost to the process was the search and testing of equipment necessary for this further refinement.
Under the terms of the initial purchase order, Steinbock agreed to pay half of the face value upon delivery of the invoice. As
of December 31, 2013, the first half of the initial purchase order was paid in the amount of $105,000, with the second half due
upon a vessel being loaded in Beira. This amount was expected to be recorded in MAB-Z as revenue once the initial 2,000 tons of
minerals were delivered to the buyer. The second purchase order required MAB-Z to successfully produce the ordered quantity of
an additional 10,000 tons after the jigging operations were to have been completed to receive the first half of the payment, and
the second half to be paid upon a vessel being loaded in Beira. In addition, MAB-Z had recorded $3,740 of unearned revenue in
December 2014 for stockpile inventory yet to be delivered to the customer.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><u>Inventory</u></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Prior
to deconsolidation as discussed in Note 3, of MAB-C, inventories, including stockpiles and mineralized material were carried at
the lower of cost or net realizable value. Cost was comprised of production costs for mineralized material produced and processed.
Production costs included the costs of materials, costs of processing, refinement, extraction, direct labor, mine site and processing
facility overhead costs and site development cost, depreciation, depletion and amortization.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>In-process
Inventories -</i><b> </b>In-process inventories represent mineralized materials that are currently in the process of being
converted to a certifiable lot of saleable product through the extraction and/or refinement process. The value of in-process material
is measured based on assays of the material fed into the process and the projected recoveries of material.  In-process
inventories are valued at the average cost of the material extracted along with all other necessary cost to feed into the process
attributable to the source material coming from the mines and/or stockpiles plus the in-process conversion costs, including applicable
depreciation relating to the process facilities incurred to that point in the process.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>Finished
Goods Inventories</i><b> - </b>Finished goods inventories include minerals that are certified in quantifiable lots that
require no further processing or capital expenditure other than loading and transport related activities from to transfer title
or complete the earnings cycle. These minerals are valued per lot at the average cost of their production.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>Work
in process inventory (Fonon Corporation) <b>-</b> </i>Work in process inventory consists of inventory purchased under the SPA
that was partially manufactured or not fully assembled as of the report date.  This equipment, machines, parts, frames,
lasers or assemblies are items not ready for use or resale.  Costs are accumulated as work in process until sales ready
items are compete when it is moved to finished goods inventory.  Amounts in this account represent items at various
stages of completion at the report date.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>Finished
goods inventory</i> (<i>Fonon Corporation</i>) <b>-</b> Finished goods inventory consists of inventory purchased under the SPA
that were fully manufactured, assembled or in salable condition,  Finished good inventory  is comprised of
items that are complete and ready for commercial application without further cost other that delivery and setup. Finished goods
inventory includes solar and other equipment, lasers, software, machines, parts or assemblies.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><u>Stockpile
reserves</u></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Prior
to deconsolidation as discussed in Note 3, for MAB-C, Stockpiles represented mineralized material that had been extracted from
the mine and is available for further processing. Stockpiles were measured by estimating the number of tons added and removed
from the stockpile. Stockpile tonnages were verified by periodic surveys. Costs were allocated to stockpiles based on relative
values of material stockpiled and processed using current mining costs incurred up to the point of stockpiling the material, including
applicable overhead, depreciation, and depletion relating to mining operations, and removed at each stockpile’s average
cost per ton. Through December 28, 2014, MAB-Z, had approximately 4,000 tons of barite in stockpile. We believed that based on
several factors that the associated extraction costs would best be reflected in the financial statements as representing no certain
future net realizable value. </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">MAB-Z
was extracting API grade barite from the Dodge Mine site and as requested and desired by our master distributor. MAB-Z was actively
in the process of trying to obtain necessary equipment to further refine the mineral to be able to attain and sell chemical grade
barite. The additional process was to crushe and sift the extracted barite and allow for the removal of silica. The added step
involved the process of jigging which separated particles in the raw barite based on specific gravity. This additional step in
the process involved a large outlay of capital to acquire additional machinery to further refine the extraction and sift out unwanted
minerals.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><u>Site
Development Cost</u></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Prior
to deconsolidation as discussed in Note 3, for MAB-C, site development costs consisted of labor, surveying, mapping, engineering,
other site development and licensing as well as any development costs necessary to prepare site Dodge Mine Blocks 1-6 for mining
operations.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><u>Extraction
Cost</u></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Prior
to deconsolidation as discussed in Note 3, for MAB-C, extraction costs consisted of the direct expenses of mineral removal from
the established site. These costs included drilling, blasting, the loading, hauling and management of stockpiles and waste by-product,
mineral refinement and excavation. These direct costs were directly associated with the production of saleable material and the
increase of stockpile reserves.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><u>Compensated
Absences</u></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company does not currently have a policy concerning due to the fact that no full time employees exist under a time based compensation
agreement.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><u>Impairment
or Disposal of Long-Lived Assets</u></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company reviews its long-lived assets and certain related intangibles for impairment periodically, and whenever events or changes
in circumstances indicate that the carrying amount of an asset may not be fully recoverable.  When necessary, impaired
assets are written down to estimated fair value based on the best information available.  Estimated fair value is generally
based on either appraised value or measured by discounting estimated future cash flows.  Considerable management judgment
is necessary to estimate discounted future cash flows.  Accordingly, actual results could vary significantly from such
estimates.  There were no assets that were considered to be impaired as of March 31, 2015.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><u>Income
Taxes</u></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company accounts for income taxes in accordance with the asset and liability method<i>.  </i> Under the asset and
liability method, 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 for the periods in which the differences are expected to reverse.  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.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company records a valuation allowance if based on the weight of available evidence, it is more likely than not that some or all
of the deferred tax asset will not be realized.  In determining the possible realization of deferred tax assets, the
Company considers future taxable income from the following sources: (i) the reversal of taxable temporary differences, (ii) taxable
income from future operations and (iii) tax planning strategies that, if necessary, would be implemented to accelerate taxable
income into periods in which net operating losses might otherwise expire.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company also recognizes the income tax effect of tax positions taken or expected to be taken in a tax return.  For those
benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities.  The
amount recognized is measured as the largest amount of benefit that has a greater than 50 percent likelihood of being realized
upon ultimate settlement.  If recognized, the tax portion of the adjustment would affect the effective tax rate.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><u>Uncertainty
in Income Taxes</u></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company follows ASC 740-10, <i>Accounting for Uncertainty in Income Taxes.</i> This interpretation requires recognition
and measurement of uncertain income tax positions using a “more-likely-than-not” approach. ASC 740-10 is effective
for fiscal years beginning after December 15, 2006. Management has adopted ASC 740-10 for 2008, and they evaluate their tax positions
on an annual basis. The Company’s policy is to recognize both interest and penalties related to unrecognized tax benefits
expected to result in payment of cash within one year are classified as accrued liabilities, while those expected beyond one year
are classified as other liabilities. The Company has not recorded any interest or penalties since its inception.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><u>Fair
Value of Financial Instruments</u></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company adopted ASC 820, “Fair Value Measurements and Disclosures” (“ASC 820”), for assets and liabilities
measured at fair value on a recurring basis. ASC 820 establishes a common definition for fair value to be applied to existing
generally accepted accounting principles that require the use of fair value measurements establishes a framework for measuring
fair value and expands disclosure about such fair value measurements. The adoption of ASC 820 did not have an impact on the
Company’s financial position or operating results, but did expand certain disclosures.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">ASC 820
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 at the measurement date. Additionally, ASC 820 requires the use of valuation techniques that
maximize the use of observable inputs and minimize the use of unobservable inputs.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">These
inputs are prioritized below:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 8%; font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 12%; font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Level
1:</font></td>
<td style="width: 80%; font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Observable
inputs such as quoted market prices in active markets for identical assets or liabilities</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 8%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 12%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Level 2:</font></td>
<td style="width: 80%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Observable market-based
inputs or unobservable inputs that are corroborated by market data</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 8%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 12%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Level 3:</font></td>
<td style="width: 80%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Unobservable inputs for
which there is little or no market data, which require the use of the reporting entity’s own assumptions.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company analyzes all financial instruments with features of both liabilities and equity under the FASB’s accounting standard
for such instruments. Under this standard, financial assets and liabilities are classified in their entirety based on the lowest
level of input that is significant to the fair value measurement.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><u>Stock-Based
Compensation</u></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company accounts for stock-based compensation at fair value using the Black-Scholes Option pricing model. All stock-based compensation
cost is measured at the grant date using the Black-Sholes Option Pricing Model, based on the fair value of the award.  The
value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods
in the Company’s statements of operations.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Stock-based
compensation expense recognized during the period is based on the value of the portion of share-based payment awards that is ultimately
expected to vest during the period.  Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent
periods if actual forfeitures differ from those estimates.  The forfeiture rate that the Company presently uses is 10%.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">There
was no stock based compensation recognized for the three months ended March 31, 2015 and 2014, respectively.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><u>Earnings
or Loss per Common Share</u></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Basic
earnings or loss per share is computed by dividing the net income or loss available to common stockholders for the period by the
weighted average number of shares of common stock outstanding during the period.  The calculation of diluted net loss
per share gives effect to common stock equivalents; however, potential common shares are excluded as their effect is anti-dilutive.  For
the three months ended March 31, 2015 and 2014 basic and diluted earnings per share were the same as the Company has a loss.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><u>Goodwill</u></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Effective
July 18, 2012, the Company acquired a 49% interest of Mabwe Minerals Zimbabwe (PVT) LTD (MAB-Z) for 25,000 shares of Series B
Convertible Preferred Stock of Raptor Resources Holdings Inc. The value of this transaction was $25,000 resulted in the Company
recording Goodwill as part of the purchase transaction. MAB-Z is the operating arm of the Company and at the time of the purchase
its net assets consisted chiefly of mining rights associated with the main line of business of the company. Management periodically
assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more
likely than not that the fair value of a reporting unit is less than its carrying amount.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">As
fully described in Note 3, on December 28, 2014, the Company deconsolidated MAB-C, a VIE due to the fact that the Company no longer
has the power to direct the activities that most significantly impact MAB-C’s economic performance.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><u>Reclassifications</u></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Certain
prior year amounts have been reclassified to conform to the current year presentation. The reclassifications had no effect on
the net loss or cash flows of the Company.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><u>Subsequent
Events</u></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
accordance with ASC 855 “Subsequent Events”, the Company is required to disclose the date through which subsequent
events have been evaluated and whether that date is the date the financial statements were issued or the date the financial statements
were available to be issued.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><u>Recent
Accounting Pronouncements</u></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
November 2014, the FASB issued ASU No. 2014-17, “Business Combination.” The provisions of ASU No. 2014-17 require
management to determining whether and at what threshold an acquiree (acquired entity) can reflect the acquirer’s accounting
and reporting basis (pushdown accounting) in its separate financial statements. This update provides an acquired entity with
an option to apply pushdown accounting in its separate financial statements upon occurrence of an event in which an acquirer obtains
control of the acquired entity in the reporting period in which the change-in-control event occurs. An acquired entity should
determine whether to elect to apply pushdown accounting for each individual change-in-control event in which an acquirer obtains
control of the acquired entity. If pushdown accounting is not applied in the reporting period in which the change-in-control event
occurs, an acquired entity will have the option to elect to apply pushdown accounting in a subsequent reporting period to the
acquired entity’s most recent change-in-control event. An election to apply 2 pushdown accounting in a reporting period
after the reporting period in which the change-in-control event occurred should be considered a change in accounting principle
in accordance with Topic 250, Accounting Changes and Error Corrections. If pushdown accounting is applied to an individual change-in-control
event, that election is irrevocable. If an acquired entity elects the option to apply pushdown accounting in its separate financial
statements, it should disclose information in the current reporting period that enables users of financial statements to evaluate
the effect of pushdown accounting. The Company is currently assessing the impact of this ASU on the Company’s financial
statements.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements—Going Concern.” The provisions
of ASU No. 2014-15 require management to assess an entity’s ability to continue as a going concern by incorporating and
expanding upon certain principles that are currently in U.S. auditing standards. Specifically, the amendments (1) provide a definition
of the term substantial doubt, (2) require an evaluation every reporting period including interim periods, (3) provide principles
for considering the mitigating effect of management’s plans, (4) require certain disclosures when substantial doubt is alleviated
as a result of consideration of management’s plans, (5) require an express statement and other disclosures when substantial
doubt is not alleviated, and (6) require an assessment for a period of one year after the date that the financial statements are
issued (or available to be issued). The amendments in this ASU are effective for the annual period ending after December 15, 2016,
and for annual periods and interim periods thereafter. The Company is currently assessing the impact of this ASU on the Company’s  financial
statements.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
June 2014, the FASB issued an Accounting Standards Update No. 2014-10, "Development Stage Entities (Topic 915) - Elimination
of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation
("ASU 2014-10")".  The objective of ASU 2014-10 is to improve financial reporting by reducing the cost
and complexity associated with the incremental reporting requirements for development stage entities.  ASU 2014-10 is
effective for annual reporting periods beginning after December 15, 2014, and interim periods therein.  The Company
has elected early implementation, as permitted by the standard, for the interim period ending June 30, 2014.  All exploration
stage language disclosures and amounts have been removed as a result of the adoption of ASU 2014-10.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
July 2012, the FASB issued ASU 2012-02, “Intangibles Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible
Assets for Impairment”, on testing for indefinite-lived intangible assets for impairment. The new guidance provides an entity
to simplify the testing for a drop in value of intangible assets such as trademarks, patents, and distribution rights. The amended
standard reduces the cost of accounting for indefinite-lived intangible assets, especially in cases where the likelihood of impairment
is low. The changes permit businesses and other organizations to first use subjective criteria to determine if an intangible asset
has lost value. The amendments to U.S. GAAP will be effective for fiscal years starting after September 15, 2012. The Company’s
adoption of this accounting guidance does not have a material impact on the consolidated financial statements and related disclosures.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
July 2013, the FASB issued ASU 2013-11, "Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward,
a Similar Tax Loss, or a Tax Credit Carryforward Exists." ASU 2013-11 provides guidance on the presentation of unrecognized
tax benefits related to any disallowed portion of net operating loss carryforwards, similar tax losses, or tax credit carryforwards,
if they exist. ASU 2013-11 is effective for fiscal years beginning after December 15, 2013. The adoption of ASU 2013-11 is not
expected to have a material impact on the Company’s consolidated financial statements.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">There
were other updates recently issued, most of which represented technical corrections to the accounting literature or application
to specific industries and are not expected to have a material impact on the Company’s financial position, results of operations
or cash flows.</font></p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The Company
had accounted for the 49% investment in MAB-C under ASC 810-10-5, as a variable interest entity (VIE).  There are two
primary models for determining whether consolidation is appropriate. These two models are a) the voting interest model; and b)
the variable interest model.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Under the
variable interest model, a controlling financial interest is assessed differently than under the voting interest model. This difference
in assessment is required because a controlling financial interest may be achieved other than by ownership of shares or voting
interests. A controlling financial interest in the VIE requires BOTH of the following: a) the power to direct the activities that
most significantly impact the VIE’s economic performance; and b) the obligation to absorb losses of the VIE that could potentially
be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Corporations
established under Zimbabwean law, must have a controlling ownership interest held by domestic parties. As a result of this statute,
51% of MAB-C was owned by Tapiwa and Asswell Gurupira (domestic residents of Zimbabwe), and the remaining 49% was held by the
Company. MAB-C owned 100% of MAB-Z, a domestic Zimbabwe corporation. MAB-Z was the owner of the majority of the Company’s
assets and obligor of a majority of the Company’s liabilities on a consolidated basis. In late 2013, the ownership of the
mining rights on the Dodge Mines was challenged through litigation against MAB-Z. Despite holding legal certificates of ownership
of the Dodge Mines claims that MAB-Z had, the legal system in Zimbabwe was not as clear cut as to the ownership. Several of these
lawsuits were heard, with MAB-Z being victorious on each and every count. However, appeals continued to be filed, and the outcome
of these appeals was not known, and with the Dodge Mine claims being in question, it delayed exploration and future revenue streams
from the barite that was the subject of those claims. When the Company entered into the mining  industry in Zimbabwe
with the clear title to these Dodge Mine claims, both the economic conditions in Zimbabwe as well as the relationship between
the Company and the Gurupiras, was better than at the end of the first quarter of 2015. Tapiwa Gurupira was, until December 28,
2014, a director of the Company.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In 2012,
despite not having voting control of MAB-C, the entire five member board of directors of MAB-C were acting as a cohesive unit
in the best interest of the Company, and  the Company had met both conditions of the VIE model, and therefore recognized
MAB-C as a VIE and consolidated MAB-C into the Company’s financial statements under ASC 810. During late 2014, culminating
on December 28, 2014, it became evident to the Company, that the relationship with the board members located in Africa and the
board members located in the USA for MAB-C had soured. The cohesiveness that embodied the prior two years was not there, and the
funding of the operations in Africa had stopped. Essentially, the power to direct the activities that most significantly impact
MAB-C’s economic performance had terminated. As of December 28, 2014, the Company had considered that the investment of
MAB-C was no longer a VIE, and thus would be considered an equity investment under ASC 970-323.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On December
28, 2014, the Company deconsolidated MAB-C, a VIE due to the fact that the Company no longer hac the power to direct the activities
that most significantly impacted MAB-C’s economic performance. The following table presents the assets and liabilities of
the former VIE controlled company on the date of deconsolidation:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr>
<td style="vertical-align: bottom; width: 89%"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">Assets</font></p></td>
<td style="vertical-align: top; width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; width: 8%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif">Cash</font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="vertical-align: top; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">12,138</font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif">Prepaid expenses</font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">24,902</font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif">Fixed assets</font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">4,713</font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif">Mining rights</font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">433,000</font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif">Goodwill</font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">25,000</font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif">Asset retirement obligation</font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">83,350</font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif">Total assets</font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="vertical-align: top; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">583.103</font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif">Liabilities</font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif">Accounts payable and accrued liabilities</font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="vertical-align: top; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">222,301</font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif">Payable to Mabwe Minerals, Inc.</font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,956,036</font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif">Due to related parties</font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">426,456</font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif">Unearned revenue</font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">      108,740</font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif">Asset retirement obligation</font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">83,350</font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif">Loans payable</font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">129,500</font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif">Securitized loan/overdraft default (a)</font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">413,489</font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif">Total liabilities</font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="vertical-align: top; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(3,339,872</font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif">) </font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">As of December
28, 2014, the date of deconsolidation, MAB-C’s net liabilities totaled $2,756,769.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 9%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">(a)</font></td>
<td style="width: 91%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In addition, MAB-Z the wholly-owned subsidiary
of MAB-C entered into a securitized loan with a financial institution in May 2013 in the amount of $420,000. Payments were
being made in accordance with the term of the agreement, however, the financial institution automatically withdrew funds from
MAB-Z’s bank accounts as payments were due, despite the fact that available funds were not in the account causing significant
overdrafts. The overdrawn account as of December 28, 2014 amounted to $378,489. MAB-Z recorded all of the default interest
and fees related to this loan, and carried the $35,000 balance of the loan as a liability. Since the security on the loan
agreement called for unlimited guarantees to the shareholders, which was MAB-C as it owned 100% of MAB-Z, by virtue of the
49% investment, the Company  recognized the $413,489 as a liability on its balance sheet as guarantor in accordance
with ASC 460-10. The Company believes that the other guarantees of this debt will be sufficient to cover any outstanding obligation
prior to the financial institution coming after the shareholders of MAB-Z, however has recorded the liability.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">As a result
of the deconsolidation, the Company will treat their 49% investment in accordance with ASC 970-323 as an equity method investment.
Investments in less than 50% interest in the voting securities of the investee company are accounted for using the equity method
of accounting. Investment in equity investee is increased by additional investments and earnings and decreased by dividends and
losses. The Company reviews such investment in equity investee for impairment whenever events and circumstances indicate a decline
in the recoverability of its carrying value.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Effective
December 28, 2014, the Company’s deconsolidated MAB-C as a result of no longer having the power to direct the activities
that most significantly impact MAB-C’s economic performance. The Company’s retained non-controlling investment in
MAB-C at fair value at the date of deconsolidation amounted to $2,756,769, net of the loss related to the write-off of $1,965,036
and the recognition of liabilities related to the guarantee of the debt of MAB-C in the amount of $413,489, which nets to a gain
of $387,244.  The Company’s share of the earnings or losses of the equity investee is reflected in the caption
“Gain on deconsolidation, net of impairment of loan from MAB-C” in the statements of operations. Upon the transfer
of the 49% ownership in MAB-C to another entity, the guaranty of debt transferred along with this. As a result, the $413,489 was
converted to equity.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The following
table sets forth certain information about the Company’s Investment in MAB-C:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr>
<td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>% of </b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Outstanding </b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Shares</b></font></p></td>
<td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="vertical-align: bottom; border-bottom: black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Carrying </b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Amount of </b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Investment</b></font></p></td>
<td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr>
<td style="vertical-align: bottom; width: 78%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: bottom; width: 9%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: bottom; width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; width: 9%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif">MAB-C at December 31, 2014</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">49</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">% </font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="vertical-align: top; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">- </font></td>
<td style="vertical-align: top; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Gain on
deconsolidation, net of impairment of loan from MAB-C</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr>
<td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="6" style="vertical-align: bottom; border-bottom: black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Years
Ended</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>December
31,</b></font></p></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr>
<td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>2014</b></font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>2013</b></font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr>
<td style="vertical-align: bottom; width: 78%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; width: 8%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; width: 8%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif">MAB-C</font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="vertical-align: top; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">387,244</font></td>
<td style="vertical-align: top; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="vertical-align: top; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="vertical-align: top; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The Company
recorded its share of MAB-C’s net gain using the equity method of accounting and such investment has been reduced to zero.
Under ASC 323-10-35 “Investments – Equity Method”, the equity method investor shall discontinue applying the
equity method when the investment has been reduced to zero and shall not provide for additional losses, unless the equity method
investor provides or commits to provide additional funds to the investee, has guaranteed obligations of the investee, or is otherwise
committed to provide further financial support to the investee. The Company is not obligated or committed to provide additional
funds or further financial support to MAB-C and as such the Company shall not record additional share of losses of MAB-C upon
reducing such investment to zero. There was no gain recognized during the three months ended March 31, 2014.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On March 30, 2015 the Company transferred
its 49% interest in MAB-C to Mabwe Minerals Inc., a South Dakota corporation.  As a result of this this transfer the
Company is now reflecting the formerly stated assets, liabilities, revenue, expenses, gains and losses as results from discontinued
operations.  At December 31, 2014, as a result of the December 28, 2014 deconsolidation the Company had no assets or
liabilities as a result of discontinued operations.  The Company had not, since inception, recognized any revenue from
these discontinued operations.  Expenses from discontinued operations were the result of cost associated with site development
activities as well as legal fees and court costs associated with the Company’s 49% investment in MAB-C.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><b>MABWE MINERALS
INC. </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>DBA FONON CORPORATION </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>STATEMENTS OF DISCONTINUED OPERATIONS </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(UNAUDITED)</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="14" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>For the Three Months Ended March 31,</b></font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt">2015</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt">2014</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt">Change ($)</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt">Change (%)</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 52%"><font style="font-size: 10pt">REVENUE, NET</font></td>
<td style="width: 1%; text-align: right"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap" style="width: 1%"> </td>
<td style="width: 1%; text-align: right"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap" style="width: 1%"> </td>
<td style="width: 1%; text-align: right"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap" style="width: 1%"> </td>
<td style="width: 1%; text-align: right"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right"><font style="font-size: 10pt">0</font></td>
<td nowrap="nowrap" style="width: 1%"><font style="font-size: 10pt">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">COST OF SALES</font></td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">0</font></td>
<td nowrap="nowrap"><font style="font-size: 10pt">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">GROSS PROFIT</font></td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">0</font></td>
<td nowrap="nowrap"><font style="font-size: 10pt">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">OPERATING EXPENSES</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-indent: 9pt"><font style="font-size: 10pt">Salary expense and salary related costs</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">0</font></td>
<td nowrap="nowrap"><font style="font-size: 10pt">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-indent: 9pt"><font style="font-size: 10pt">Professional, consulting and marketing fees</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">12,418</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">(12,418</font></td>
<td nowrap="nowrap"><font style="font-size: 10pt">)</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-100</font></td>
<td nowrap="nowrap"><font style="font-size: 10pt">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-indent: 9pt"><font style="font-size: 10pt">Extraction Cost</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">130,738</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">(130,738</font></td>
<td nowrap="nowrap"><font style="font-size: 10pt">)</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-100</font></td>
<td nowrap="nowrap"><font style="font-size: 10pt">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-indent: 9pt"><font style="font-size: 10pt">Site Development Cost</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">16,996</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">(16,996</font></td>
<td nowrap="nowrap"><font style="font-size: 10pt">)</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-100</font></td>
<td nowrap="nowrap"><font style="font-size: 10pt">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-indent: 9pt"><font style="font-size: 10pt">Selling, General and administrative</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">17,749</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">(17,749</font></td>
<td nowrap="nowrap"><font style="font-size: 10pt">)</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-100</font></td>
<td nowrap="nowrap"><font style="font-size: 10pt">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-indent: 9pt"><font style="font-size: 10pt">Depreciation</font></td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">199</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(199</font></td>
<td nowrap="nowrap"><font style="font-size: 10pt">)</font></td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-100</font></td>
<td nowrap="nowrap"><font style="font-size: 10pt">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-indent: 9pt"><font style="font-size: 10pt">Total operating expenses</font></td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">178,100</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(178,100</font></td>
<td nowrap="nowrap"><font style="font-size: 10pt">)</font></td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-100</font></td>
<td nowrap="nowrap"><font style="font-size: 10pt">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Loss from operations</font></td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(178,100</font></td>
<td nowrap="nowrap"><font style="font-size: 10pt">)</font></td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">178,100</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-100</font></td>
<td nowrap="nowrap"><font style="font-size: 10pt">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">OTHER INCOME (EXPENSE)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Interest Income (Expense)</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">(15,818</font></td>
<td nowrap="nowrap"><font style="font-size: 10pt">)</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">15,818</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-100</font></td>
<td nowrap="nowrap"><font style="font-size: 10pt">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Loss on Investment - W.G.B. Kinsey - Equity Method</font></td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(12,367</font></td>
<td nowrap="nowrap"><font style="font-size: 10pt">)</font></td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">12,367</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-100</font></td>
<td nowrap="nowrap"><font style="font-size: 10pt">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Gain on deconsolidation, net of impairment of loan from MAB-C</font></td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Total other income (expense)</font></td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(28,185</font></td>
<td nowrap="nowrap"><font style="font-size: 10pt">)</font></td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">28,185</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-100</font></td>
<td nowrap="nowrap"><font style="font-size: 10pt">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Income (loss) before income taxes</font></td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(206,285</font></td>
<td nowrap="nowrap"><font style="font-size: 10pt">)</font></td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">206,285</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-100</font></td>
<td nowrap="nowrap"><font style="font-size: 10pt">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Income tax benefit</font></td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">0</font></td>
<td nowrap="nowrap"><font style="font-size: 10pt">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">NET INCOME (LOSS)</font></td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(206,285</font></td>
<td nowrap="nowrap"><font style="font-size: 10pt">)</font></td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">206,285</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-100</font></td>
<td nowrap="nowrap"><font style="font-size: 10pt">%</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>MABWE MINERALS INC. </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(DBA FONON CORPORATION) </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>BALANCE SHEETS FROM DISCONTINUED OPERATIONS
</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"><b> </b></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; background-color: white">
<tr>
<td style="width: 80%"> </td>
<td style="width: 9%; text-align: center"><font style="font-size: 10pt"><b>(UNAUDITED)</b></font></td>
<td style="width: 1%"> </td>
<td style="width: 9%"> </td>
<td style="width: 1%"> </td></tr>
<tr>
<td> </td>
<td style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>March 31, 2015</b></font></td>
<td style="text-align: center"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>December 31, 2014</b></font></td>
<td style="text-align: center"> </td></tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="background-color: #CCEEFF">
<td><font style="font-size: 10pt">Assets of discontinued operations</font></td>
<td style="text-align: right"><font style="font-size: 10pt"> -</font></td>
<td style="text-align: right"> </td>
<td style="text-align: right"><font style="font-size: 10pt"> -</font></td>
<td style="text-align: right"> </td></tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="background-color: #CCEEFF">
<td><font style="font-size: 10pt">Liabilities of discontinued operations</font></td>
<td style="text-align: right"><font style="font-size: 10pt"> -</font></td>
<td style="text-align: right"> </td>
<td style="text-align: right"><font style="font-size: 10pt"> -</font></td>
<td style="text-align: right"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"><b> </b></p>
<p style="margin: 0pt; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
October 29, 2012, the Company, MAB-C, and Kinsey entered into an Equity Exchange Agreement (“Equity Exchange Agreement”).
In accordance with the Equity Exchange Agreement, the Company issued 5,000,000 shares of their common stock to Kinsey in exchange
for a 25% ownership for MAB-C in Kinsey. Originally, under the contract should the value of the 5,000,000 shares of common stock
fail to be valued at $5,000,000 on December 31, 2013, the Company would have issued additional shares of common stock to achieve
that value for Kinsey. The Equity Exchange Agreement was later revised on December 5, 2013 to exclude this provision of the issuance
of the additional shares. The common shares issued have been initially valued at $500,000, as the price of MBMI common stock was
trading at $0.10 per share.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
investment has been accounted for as an equity investment under ASC 323. In accordance with the ASC, the investment will be maintained
at fair value, and increased or decreased based upon the net income or loss of Kinsey as well as any contributions made and dividends
paid. The Company’s investment decreased $542,908 to $12,367 as a result of the incremental loss of Kinsey for the year
ended December 31, 2013 at 25% ownership by MAB-C, and then reduced by $12,367 during the year ended December 31, 2014.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Kinsey investment was treated as an equity investment under ASC 970-323. In accordance with ASC 970-323 as an equity method
investment, investments in less than 50% interest in the voting securities of the investee company in which the Company has significant
influence are accounted for using the equity method of accounting. Investment in equity investee is increased by additional investments
and earnings and decreased by dividends and losses. The Company reviews such Investment in equity investee for impairment whenever
events and circumstances indicate a decline in the recoverability of its carrying value. As there was no value in this investment,
and the Company had built up extensive accrued costs related to the exploration of the Dodge Mines and Kinsey’s business
was failing due to the economic condition in Africa, effective October 1, 2014, MAB-C and Kinsey agreed to exchange the 25% ownership
in Kinsey back to Kinsey in exchange for the accrued exploration costs (net of prepaid withholding fees) in the amount of $478,014.
In this transaction, Kinsey gets to keep the 5,000,000 shares of the Company. As a result of the transaction, Kinsey is no longer
an investment on the books of MAB-C.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Warrants granted to investors and to former CEO, Al Pietrangelo,
under terms of the asset purchase and change of control are summarized as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr>
<td style="vertical-align: bottom; width: 17%; border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Warrants</b></font></td>
<td style="width: 3%"> </td>
<td style="vertical-align: bottom; width: 8%; border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Exercise Price</b></font></td>
<td style="width: 3%"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Date Issued</b></font></td>
<td style="width: 2%"> </td>
<td style="vertical-align: bottom; width: 8%; border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Term</b></font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="text-align: center"><font style="font-size: 10pt">1,600,000</font></td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt">$0.15</font></td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt">Apr - Jun 2013</font></td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt">2 Years</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 100%; text-indent: 0.25in"><font style="font-size: 10pt">    Total:  1,600,000*</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><b> </b></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 48px; text-align: right"><font style="font: 10pt Symbol">·  </font></td>
<td style="text-align: justify"><font style="font-size: 10pt">This total does not include the 12,500,000 warrants issued to Al Pietrangelo in the acquisition agreement with Fonon Technologies as the warrants are only issued upon the effective date of the intended reverse stock split. Those warrants have an exercise price of $0.001 and have an exercise period of two years.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The warrants do not meet conditions for equity classification and
are required to be carried as a derivative liability, at fair value.  Management estimated the fair value of the warrants
on March 30, 2015, as this is the date the warrants were reclassified to liability classification, and subsequently at each reporting
period, using the Lattice option-pricing model, adjusted for dilution, because that technique embodies all assumptions (including
volatility, expected terms, dilution and risk free rates) that are necessary to determine the fair value of freestanding warrants.
This valuation resulted in a derivative liability on the balance sheet in the amount of $0 at March 30, 2015 (initial classification)
and March 31, 2015 (end of reporting period), respectively. Significant inputs in calculating this valuation using the Lattice
option-pricing model are as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 41%"> </td>
<td style="width: 29%; border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>March 31, 2015</b></font></td>
<td style="width: 1%"> </td>
<td style="width: 29%; border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>March 30, 2015</b></font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: top; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Expected volatility</font></td>
<td style="text-align: center"><font style="font-size: 10pt">677%</font></td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt">677%</font></td></tr>
<tr style="vertical-align: top; background-color: white">
<td><font style="font-size: 10pt">Expected term</font></td>
<td style="text-align: center"><font style="font-size: 10pt">.25 Years</font></td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt">0.25 Years</font></td></tr>
<tr style="vertical-align: top; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Risk-free interest rate</font></td>
<td style="text-align: center"><font style="font-size: 10pt">0.04%</font></td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt">0.04%</font></td></tr>
<tr style="vertical-align: top; background-color: white">
<td><font style="font-size: 10pt">Expected dividend yield</font></td>
<td style="text-align: center"><font style="font-size: 10pt">0%</font></td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt">0%</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Prior to deconsolidation as discussed in Note 3, effective May 16,
2013 MAB-Z entered into a one year securitized financing short term agreement with CBZ Bank Limited in the amount of $420,000.  As
security under this agreement Kinsey pledged two Bell HD2045 Hydraulic Excavators appraised at a combined value of $739,000, further
guaranteed by the shareholders of MAB-Z.  The loan originally was to be paid in monthly installments commencing in December
2013 in the amount of $35,000 plus interest expiring on June 30, 2014 upon which time all monies were due and payable in full.  The
interest rate on the loan was 15% per year. Upon funding of this loan a 3% establishment fee was charged and deducted from the
proceeds.  MAB-Z may in the future obtain funding through securitizations and other attempts to raise capital until cash
flow operations are self-sustaining in the support of continuing operations.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">This agreement was subsequently modified in January 2014 to adjust
the payment schedule whereby payments of $35,000 per month plus full to date interest is due and payable commencing February 2014
and will continue each month there after including interest with the last payment due January 31, 2015.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Subsequent to the restructuring, the account was over-drafted due
to withdrawal of timely interest and principal payments as well as miscellaneous bank fees. The overdraft position as provided
for in the agreement carries the banks minimum lending rate plus a 12% margin agreed to on the original loan upon acceptance.  Additionally,
as provided in our agreement this overdraft position not being previously agreed and authorized carried a penalty interest rate
of an additional 10%.  Additionally the bank reserved the right to increase or change the minimum rate during the term
of this line at its sole discretion. </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Currently the bank has assigned an additional premium of 3%.  This
rate was a floating rate and was assigned at the discretion of the bank. MAB-Z continued to try to renegotiate the terms of this
loan.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of December 31, 2014, MAB-Z reflected the entire amount in current
liabilities. MAB-Z expensed $110,862 for interest on this loan and the associated overdraft line of credit for the year ended December
31, 2014. The interest charged on the loan in the amount of $110,862 consisted of $74,652 of standard loan interest and $36,210
of overdraft interest.  MAB-Z paid $104,870 in interest during the year ended December 31, 2014, most of which was reclassified
as overdraft, leaving an interest payable balance of $5,991.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The overdrawn account as of December 28, 2014 amounted to $378,489.
MAB-Z recorded all of the default interest and fees related to this loan as described above, and carry the $35,000 balance of the
loan as a liability. Since the security on the loan agreement called for unlimited guarantees by the shareholders, which was MAB-C
as it owned 100% of MAB-Z, by virtue of the 49% investment the Company had recognized the $413,489 as a liability on their balance
sheet as guarantor in accordance with ASC 460-10. The Company believed that the other guarantors of this debt would be sufficient
to cover any outstanding obligation prior to the financial institution asserting any claims for the debt owed by the shareholders
of MAB-Z.  As a result of the transfer of the 49% interest in MAB-C to another company, the $413,489 guaranty was converted
to equity as the Company no longer guaranteed the repayment of any debt associated with the securitized loan.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">This current overdraft position puts MAB-Z in default of that obligation
which it continued to aggressively renegotiate.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Mabwe Minerals Inc. on July 18, 2012, acquired
a 49% interest in Mabwe Minerals Zimbabwe (PVT) LTD (MAB-Z) through the issuance of 25,000 shares of Raptor Resources Holdings
Inc. Series B Preferred Convertible Stock.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Each share of the Series B Preferred Convertible
Stock is convertible into 50 common shares of Raptor Resources Holdings Inc. and 25 common shares of Mabwe Minerals Inc. both
subject to a 1 year holding period. The remaining 51% ownership in MAB-Z is held by a Director of the Company, a Zimbabwe resident,
Tapiwa Gurupira (50%) with the remaining portion owned by Asswell Gurupira (1%). MAB-Z will be the operating arm of Mabwe Minerals,
Inc., with the Company being the primary beneficiary of all the activities of its subsidiary, Mabwe Minerals Zimbabwe (PVT) LTD.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On November 7, 2012 the principals of MAB-Z
received approval from the Government of Zimbabwe to form a new parent holding corporation for the purpose of holding MAB-Z and
its percentage investment stake in WGB Kinsey & Company (“Kinsey”.) The new company was Mabwe Corporation (PVT)
LTD (“MAB-C”.) The new corporation owns 100% of MAB-Z and 25% of Kinsey, which as of October 1, 2014, has been returned
to Kinsey, as fully described in Note 3. The Company owns a 49% stake in MAB-C the newly formed corporation; the remaining 51%
ownership in MAB-C held by a former director of the Company, Zimbabwean resident, Tapiwa Gurupira (50% ownership), with the remaining
portion owned by Asswell Gurupira (1% ownership). MAB-C up through December 28, 2014, was the operating arm of Mabwe Minerals Inc.,
with the Company being the primary beneficiary of all the activities of MAB-C.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">MAB-C was a Variable Interest Entity (VIE)
with respect to guidance under ASC 810-10-5 and was therefore consolidated.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As fully described in Note 3, on December 28,
2014, the Company deconsolidated MAB-C, a VIE due to the fact that the Company no longer has the power to direct the activities
that most significantly impact MAB-C’s economic performance.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="background-color: white">Pursuant
to the March 30, 2015 SPA whereby the simultaneous asset purchase, the transfer of prior Company assets and liabilities to a company
controlled by Al Pietrangelo and the Company’s direction to engage in the business of 3D Metal Laser Printing as well as
the effective upon the closing date of the SPA, Al Pietrangelo, former President and CEO and sole director, resigned, and prior
to such resignation appointed Dmitriy Nikitin to be the sole member of its Board there is no subsidiary parent arrangement.  The
transferred assets of Fonon Technologies valued at $10,401,030 allow the Company to focus operational efforts in the laser material
processing business.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company considers all highly liquid investments with a maturity
of three months or less when acquired to be cash equivalents. The Company places its cash with a high credit quality financial
institution. The Company’s accounts at this institution are insured by the Federal Deposit Insurance Corporation (“FDIC”)
up to $250,000.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The preparation of financial statements in conformity with U.S.
generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts
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.  Significant estimates made by management include the recoverability
of long-lived assets, the valuation of stock-based compensation and the valuation allowance of the deferred tax asset.  Actual
results could differ from those estimates.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Property and equipment are recorded at fair value at the time of
the SPA and are presented less accumulated depreciation.   Depreciation is computed using the straight-line method
over the assets estimated useful lives. Repairs and maintenance of a routine nature are charged as incurred.  Significant
renewals and betterments are capitalized.  At the time of retirement or other disposition of property and equipment,
the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in the statements
of operations.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Prior to the change in business, the Company recorded revenues when
the following criteria were met: (i) persuasive evidence of an arrangement exists; (ii) delivery has occurred; (iii) the price
to the customer is fixed or determinable; and (iv) collection of the sales price is reasonably assured.  Delivery occurs
when goods are shipped and title and risk of loss have passed to the customer.  Revenue is deferred in all instances
where the earnings process is incomplete.  The Company recognized revenue from distribution sales when all contingencies
were satisfied and upon persuasive evidence of a sale to end users until such time that historical sell through ratios had been
developed.  Payments received before all of the relevant criteria for revenue recognition were satisfied were recorded
as deferred revenue in the accompanying balance sheets.  Revenues and costs of revenues from consulting contracts were
recognized during the period in which the service was performed.  All revenues were reported net of any sales discounts
or taxes.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Since the Company entered the Exploration Stage and most recently,
the Development Stage, no revenues have been recorded.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Prior to deconsolidation as discussed in Note 3, of MAB-C, inventories,
including stockpiles and mineralized material were carried at the lower of cost or net realizable value. Cost was comprised of
production costs for mineralized material produced and processed. Production costs included the costs of materials, costs of processing,
refinement, extraction, direct labor, mine site and processing facility overhead costs and site development cost, depreciation,
depletion and amortization.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>In-process Inventories -</i><b> </b>In-process inventories
represent mineralized materials that are currently in the process of being converted to a certifiable lot of saleable product through
the extraction and/or refinement process. The value of in-process material is measured based on assays of the material fed into
the process and the projected recoveries of material.  In-process inventories are valued at the average cost of the material
extracted along with all other necessary cost to feed into the process attributable to the source material coming from the mines
and/or stockpiles plus the in-process conversion costs, including applicable depreciation relating to the process facilities incurred
to that point in the process.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Finished Goods Inventories</i><b> - </b>Finished goods
inventories include minerals that are certified in quantifiable lots that require no further processing or capital expenditure
other than loading and transport related activities from to transfer title or complete the earnings cycle. These minerals are valued
per lot at the average cost of their production.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Work in process inventory (Fonon Corporation) <b>-</b> </i>Work
in process inventory consists of inventory purchased under the SPA that was partially manufactured or not fully assembled as of
the report date.  This equipment, machines, parts, frames, lasers or assemblies are items not ready for use or resale.  Costs
are accumulated as work in process until sales ready items are compete when it is moved to finished goods inventory.  Amounts
in this account represent items at various stages of completion at the report date.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Finished goods inventory (<i>Fonon Corporation</i>) <b>-</b> Finished
goods inventory consists of inventory purchased under the SPA that were fully manufactured, assembled or in salable condition,  Finished
good inventory  is comprised of items that are complete and ready for commercial application without further cost other
that delivery and setup. Finished goods inventory includes solar and other equipment, lasers, software, machines, parts or assemblies.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Prior to deconsolidation as discussed in Note 3, for MAB-C, site
development costs consisted of labor, surveying, mapping, engineering, other site development and licensing as well as any development
costs necessary to prepare site Dodge Mine Blocks 1-6 for mining operations.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company does not currently have a policy concerning due to the
fact that no full time employees exist under a time based compensation agreement.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company reviews its long-lived assets and certain related intangibles
for impairment periodically, and whenever events or changes in circumstances indicate that the carrying amount of an asset may
not be fully recoverable.  When necessary, impaired assets are written down to estimated fair value based on the best
information available.  Estimated fair value is generally based on either appraised value or measured by discounting
estimated future cash flows.  Considerable management judgment is necessary to estimate discounted future cash flows.  Accordingly,
actual results could vary significantly from such estimates.  There were no assets that were considered to be impaired
as of March 31, 2015.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company accounts for income taxes in accordance with the asset
and liability method<i>.  </i> Under the asset and liability method, 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
for the periods in which the differences are expected to reverse.  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.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company records a valuation allowance if based on the weight
of available evidence, it is more likely than not that some or all of the deferred tax asset will not be realized.  In
determining the possible realization of deferred tax assets, the Company considers future taxable income from the following sources:
(i) the reversal of taxable temporary differences, (ii) taxable income from future operations and (iii) tax planning strategies
that, if necessary, would be implemented to accelerate taxable income into periods in which net operating losses might otherwise
expire.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company also recognizes the income tax effect of tax positions
taken or expected to be taken in a tax return.  For those benefits to be recognized, a tax position must be more-likely-than-not
to be sustained upon examination by taxing authorities.  The amount recognized is measured as the largest amount of benefit
that has a greater than 50 percent likelihood of being realized upon ultimate settlement.  If recognized, the tax portion
of the adjustment would affect the effective tax rate.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company follows ASC 740-10, <i>Accounting for Uncertainty
in Income Taxes.</i> This interpretation requires recognition and measurement of uncertain income tax positions using a “more-likely-than-not”
approach. ASC 740-10 is effective for fiscal years beginning after December 15, 2006. Management has adopted ASC 740-10 for 2008,
and they evaluate their tax positions on an annual basis. The Company’s policy is to recognize both interest and penalties
related to unrecognized tax benefits expected to result in payment of cash within one year are classified as accrued liabilities,
while those expected beyond one year are classified as other liabilities. The Company has not recorded any interest or penalties
since its inception.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company adopted ASC 820, “Fair Value Measurements and
Disclosures” (“ASC 820”), for assets and liabilities measured at fair value on a recurring basis. ASC 820 establishes
a common definition for fair value to be applied to existing generally accepted accounting principles that require the use of fair
value measurements establishes a framework for measuring fair value and expands disclosure about such fair value measurements.
The adoption of ASC 820 did not have an impact on the Company’s financial position or operating results, but did expand
certain disclosures.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">ASC 820 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 at the measurement date.
Additionally, ASC 820 requires the use of valuation techniques that maximize the use of observable inputs and minimize the
use of unobservable inputs.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">These inputs are prioritized below:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 8%; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="width: 12%; font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">Level 1:</font></td>
<td style="width: 80%; font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">Observable inputs such as quoted market prices in active markets for identical assets or liabilities</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 8%"> </td>
<td style="width: 12%"><font style="font-size: 10pt">Level 2:</font></td>
<td style="width: 80%"><font style="font-size: 10pt">Observable market-based inputs or unobservable inputs that are corroborated by market data</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 8%"> </td>
<td style="width: 12%"><font style="font-size: 10pt">Level 3:</font></td>
<td style="width: 80%; text-align: justify"><font style="font-size: 10pt">Unobservable inputs for which there is little or no market data, which require the use of the reporting entity’s own assumptions.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company analyzes all financial instruments with features of
both liabilities and equity under the FASB’s accounting standard for such instruments. Under this standard, financial assets
and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company accounts for stock-based compensation at fair value
using the Black-Scholes Option pricing model. All stock-based compensation cost is measured at the grant date using the Black-Sholes
Option Pricing Model, based on the fair value of the award.  The value of the portion of the award that is ultimately
expected to vest is recognized as expense over the requisite service periods in the Company’s statements of operations.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Stock-based compensation expense recognized during the period is
based on the value of the portion of share-based payment awards that is ultimately expected to vest during the period.  Forfeitures
are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates.  The
forfeiture rate that the Company presently uses is 10%.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">There was no stock based compensation recognized for the three months
ended March 31, 2015 and 2014, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Basic earnings or loss per share is computed by dividing the net
income or loss available to common stockholders for the period by the weighted average number of shares of common stock outstanding
during the period.  The calculation of diluted net loss per share gives effect to common stock equivalents; however,
potential common shares are excluded as their effect is anti-dilutive.  For the three months ended March 31, 2015 and
2014 basic and diluted earnings per share were the same as the Company has a loss.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Effective July 18, 2012, the Company acquired a 49% interest of
Mabwe Minerals Zimbabwe (PVT) LTD (MAB-Z) for 25,000 shares of Series B Convertible Preferred Stock of Raptor Resources Holdings
Inc. The value of this transaction was $25,000 resulted in the Company recording Goodwill as part of the purchase transaction.
MAB-Z is the operating arm of the Company and at the time of the purchase its net assets consisted chiefly of mining rights associated
with the main line of business of the company. Management periodically assess qualitative factors to determine whether the existence
of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is
less than its carrying amount.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As fully described in Note 3, on December 28,
2014, the Company deconsolidated MAB-C, a VIE due to the fact that the Company no longer has the power to direct the activities
that most significantly impact MAB-C’s economic performance.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In accordance with ASC 855 “Subsequent
Events”, the Company is required to disclose the date through which subsequent events have been evaluated and whether that
date is the date the financial statements were issued or the date the financial statements were available to be issued.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In November 2014, the FASB issued ASU No. 2014-17, “Business
Combination.” The provisions of ASU No. 2014-17 require management to determining whether and at what threshold an acquiree
(acquired entity) can reflect the acquirer’s accounting and reporting basis (pushdown accounting) in its separate financial
statements. This update provides an acquired entity with an option to apply pushdown accounting in its separate financial
statements upon occurrence of an event in which an acquirer obtains control of the acquired entity in the reporting period in
which the change-in-control event occurs. An acquired entity should determine whether to elect to apply pushdown accounting for
each individual change-in-control event in which an acquirer obtains control of the acquired entity. If pushdown accounting is
not applied in the reporting period in which the change-in-control event occurs, an acquired entity will have the option to elect
to apply pushdown accounting in a subsequent reporting period to the acquired entity’s most recent change-in-control event.
An election to apply 2 pushdown accounting in a reporting period after the reporting period in which the change-in-control event
occurred should be considered a change in accounting principle in accordance with Topic 250, Accounting Changes and Error Corrections.
If pushdown accounting is applied to an individual change-in-control event, that election is irrevocable. If an acquired entity
elects the option to apply pushdown accounting in its separate financial statements, it should disclose information in the current
reporting period that enables users of financial statements to evaluate the effect of pushdown accounting. The Company is currently
assessing the impact of this ASU on the Company’s financial statements.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In August 2014, the FASB issued ASU No. 2014-15, “Presentation
of Financial Statements—Going Concern.” The provisions of ASU No. 2014-15 require management to assess an entity’s
ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing
standards. Specifically, the amendments (1) provide a definition of the term substantial doubt, (2) require an evaluation every
reporting period including interim periods, (3) provide principles for considering the mitigating effect of management’s
plans, (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of management’s
plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment
for a period of one year after the date that the financial statements are issued (or available to be issued). The amendments in
this ASU are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter.
The Company is currently assessing the impact of this ASU on the Company’s  financial statements.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In June 2014, the FASB issued an Accounting Standards Update No.
2014-10, "Development Stage Entities (Topic 915) - Elimination of Certain Financial Reporting Requirements, Including an Amendment
to Variable Interest Entities Guidance in Topic 810, Consolidation ("ASU 2014-10")".  The objective of
ASU 2014-10 is to improve financial reporting by reducing the cost and complexity associated with the incremental reporting requirements
for development stage entities.  ASU 2014-10 is effective for annual reporting periods beginning after December 15, 2014,
and interim periods therein.  The Company has elected early implementation, as permitted by the standard, for the interim
period ending June 30, 2014.  All exploration stage language disclosures and amounts have been removed as a result of
the adoption of ASU 2014-10.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In July 2012, the FASB issued ASU 2012-02, “Intangibles Goodwill
and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment”, on testing for indefinite-lived intangible
assets for impairment. The new guidance provides an entity to simplify the testing for a drop in value of intangible assets such
as trademarks, patents, and distribution rights. The amended standard reduces the cost of accounting for indefinite-lived intangible
assets, especially in cases where the likelihood of impairment is low. The changes permit businesses and other organizations to
first use subjective criteria to determine if an intangible asset has lost value. The amendments to U.S. GAAP will be effective
for fiscal years starting after September 15, 2012. The Company’s adoption of this accounting guidance does not have a material
impact on the consolidated financial statements and related disclosures.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In July 2013, the FASB issued ASU 2013-11, "Presentation of
an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists."
ASU 2013-11 provides guidance on the presentation of unrecognized tax benefits related to any disallowed portion of net operating
loss carryforwards, similar tax losses, or tax credit carryforwards, if they exist. ASU 2013-11 is effective for fiscal years beginning
after December 15, 2013. The adoption of ASU 2013-11 is not expected to have a material impact on the Company’s consolidated
financial statements.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">There were other updates recently issued, most of which represented
technical corrections to the accounting literature or application to specific industries and are not expected to have a material
impact on the Company’s financial position, results of operations or cash flows.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of June 29, 2012 the Company moved from
an Operating Stage Company to an Exploration Stage Company as a result of the execution of the change in ownership control to the
majority controlling interest by Raptor Resources Holdings Inc. This transaction was FINRA deemed effective June 28, 2012 and exploration
stage activities commenced on June 29, 2012. In accordance with ASC 915 the Company will be reporting and disclosing additional
information in addition to reporting and disclosure requirements otherwise prepared in accordance with U.S. generally accepted
accounting principles (GAAP).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company had adopted the provisions of ASC
810-10-5, “Consolidation of VIEs”. ASC 810-10-5 requires a VIE to be consolidated by a company if that company is subject
to a majority of the risk of loss for the VIE or is entitled to receive a majority of the VIEs residual returns. As fully described
in Note 3, on December 28, 2014, the Company deconsolidated MAB-C, a VIE due to the fact that the Company no longer has the power
to direct the activities that most significantly impact MAB-C’s economic performance.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As a result of the deconsolidation, the Company
exited the exploration stage and became a development stage company.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="background-color: white">With
the March 30, 2015 the SPA whereby the transfer of performing assets by Fonon Technologies into the Company valued at $10,401,030
allows the Company to focus operational efforts in the laser material processing and consumables business.  The Company’s
business of 3D Laser Metal Printing, an emerging additive metal nano powder manufacturing technology with a presence in numerous
industries with diverse applications, including the manufacturing of highly complex geometrics, fast track prototyping, mold fabrication
and repair, with new emerging technically driven applications in high-tech engineering and electronics.  3D Laser Metal
Printing is a layered, digitally driven additive manufacturing process that uses high quality focused laser energy to fuse metal
nano powders into 3D objects. Metal powder is supplied to each customer as a consumable item after acquiring a Laser 3D Metal System.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On March 30<font style="background-color: white">, 2015, the Company,
entered into a Share Purchase and Asset Sale Agreement (the “SPA”) among Mabwe Minerals, Fonon Technologies, Raptor
Resources Holdings Inc. and Dmitriy Nikitin pursuant to which the Company sold an aggregate of 325,241,608 shares of its common
stock, to give Fonon Technologies 65% ownership of Mabwe’s capital stock on a fully diluted basis in exchange for certain
assets of Fonon Technologies valued at $10,401,030 which Fonon Technologies used in its laser material processing and consumables
business.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="background-color: white">The Company has reviewed the
SPA for consideration as a business combination and for the application of pushdown accounting, In is review of this transaction
the Company considered </font>ASU No. 2014-17, “Business Combination”  and ASC 805-50 “Business Combinations:
Related Issues” sections 25 “Recognition” and 30 “Initial Management”.  As prescribed in
ASC 805-50-25-1 initial recognition of the purchase of assets for equity interest consideration shall be measured at the date of
acquisition. The entities of the transaction were not under common control.      </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has considered ASC 805-50-30 “Business Combinations:
Related Issues - Initial Management” assets purchased rather than a business.  Under this provision the assets
purchased are recognized at the cost to the acquiring entity.  In this case, the consideration of non-cash equity interest
which was given in exchange for the assets is based upon the fair value of the assets acquired because it is more reliability
measured.  This reliability is based on the uncertainty of true stock value subsequent to planned reverse spilt and
the issuance of an additional 65,000,000 post-split shares of common stock to Fonon Technologies, Inc.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In November 2014, the FASB issued ASU No. 2014-17, “Business
Combination.” The provisions of ASU No. 2014-17 require management to determining whether and at what threshold an acquiree
(acquired entity) can reflect the acquirer’s accounting and reporting basis (pushdown accounting) in its separate financial
statements.  Under the SPA the acquirees’ acquisition was of a group of performing assets and not a disparate company.  As
a result of the deconsolidation on December 28, 2014, the basis of account prior to and subsequently are not materially different.  As
result of the SPA, the Company, <font style="background-color: white">Fonon Corporation will focus on the business of 3D Laser
Metal Printing.  The Company has not elected to apply </font>pushdown accounting in its separate financial statements
upon occurrence of this event.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Prior to deconsolidation as discussed in Note 3, when the Company
was in the Exploration Stage, MAB-Z had yet to realize its first shipment of barite. This shipment to an agreed upon FOB point
is the primary hurdle in our recognizing revenue by completing the earning process on the purchase order that was submitted by
Steinbock in the third quarter of 2013. A second purchase order was issued by Steinbock in December of 2013 for 10,000 tons of
barite but has not been billed by MAB-Z. This delay was due to MAB-Z’s desire to refine the current mineral extraction to
a sufficiently high grade of barite to obtain a higher market price. Further delaying the process and adding cost to the process
was the search and testing of equipment necessary for this further refinement. Under the terms of the initial purchase order, Steinbock
agreed to pay half of the face value upon delivery of the invoice. As of December 31, 2013, the first half of the initial purchase
order was paid in the amount of $105,000, with the second half due upon a vessel being loaded in Beira. This amount was expected
to be recorded in MAB-Z as revenue once the initial 2,000 tons of minerals were delivered to the buyer. The second purchase order
required MAB-Z to successfully produce the ordered quantity of an additional 10,000 tons after the jigging operations were to have
been completed to receive the first half of the payment, and the second half to be paid upon a vessel being loaded in Beira. In
addition, MAB-Z had recorded $3,740 of unearned revenue in December 2014 for stockpile inventory yet to be delivered to the customer.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Prior to deconsolidation as discussed in Note 3, for MAB-C, Stockpiles
represented mineralized material that had been extracted from the mine and is available for further processing. Stockpiles were
measured by estimating the number of tons added and removed from the stockpile. Stockpile tonnages were verified by periodic surveys.
Costs were allocated to stockpiles based on relative values of material stockpiled and processed using current mining costs incurred
up to the point of stockpiling the material, including applicable overhead, depreciation, and depletion relating to mining operations,
and removed at each stockpile’s average cost per ton. Through December 28, 2014, MAB-Z, had approximately 4,000 tons of barite
in stockpile. We believed that based on several factors that the associated extraction costs would best be reflected in the financial
statements as representing no certain future net realizable value. </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">MAB-Z was extracting API grade barite from the Dodge Mine site and
as requested and desired by our master distributor. MAB-Z was actively in the process of trying to obtain necessary equipment to
further refine the mineral to be able to attain and sell chemical grade barite. The additional process was to crushe and sift the
extracted barite and allow for the removal of silica. The added step involved the process of jigging which separated particles
in the raw barite based on specific gravity. This additional step in the process involved a large outlay of capital to acquire
additional machinery to further refine the extraction and sift out unwanted minerals.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Prior to deconsolidation as discussed in Note 3, for MAB-C, extraction
costs consisted of the direct expenses of mineral removal from the established site. These costs included drilling, blasting, the
loading, hauling and management of stockpiles and waste by-product, mineral refinement and excavation. These direct costs were
directly associated with the production of saleable material and the increase of stockpile reserves.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Certain prior year amounts have been reclassified
to conform to the current year presentation. The reclassifications had no effect on the net loss or cash flows of the Company.</p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr>
<td style="vertical-align: bottom; width: 89%">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">Assets</p></td>
<td style="vertical-align: top; width: 1%"> </td>
<td style="vertical-align: top; width: 1%"> </td>
<td style="vertical-align: top; width: 8%"> </td>
<td style="vertical-align: top; width: 1%"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom"><font style="font-size: 10pt">Cash</font></td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: top; text-align: right"><font style="font-size: 10pt">12,138</font></td>
<td style="vertical-align: top"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom"><font style="font-size: 10pt">Prepaid expenses</font></td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top; text-align: right"><font style="font-size: 10pt">24,902</font></td>
<td style="vertical-align: top"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom"><font style="font-size: 10pt">Fixed assets</font></td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top; text-align: right"><font style="font-size: 10pt">4,713</font></td>
<td style="vertical-align: top"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom"><font style="font-size: 10pt">Mining rights</font></td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top; text-align: right"><font style="font-size: 10pt">433,000</font></td>
<td style="vertical-align: top"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom"><font style="font-size: 10pt">Goodwill</font></td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top; text-align: right"><font style="font-size: 10pt">25,000</font></td>
<td style="vertical-align: top"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom"><font style="font-size: 10pt">Asset retirement obligation</font></td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top; border-bottom: black 2.25pt double"> </td>
<td style="vertical-align: top; border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">83,350</font></td>
<td style="vertical-align: top"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom"><font style="font-size: 10pt">Total assets</font></td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: top; text-align: right"><font style="font-size: 10pt">583.103</font></td>
<td style="vertical-align: top"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom"><font style="font-size: 10pt">Liabilities</font></td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom"><font style="font-size: 10pt">Accounts payable and accrued liabilities</font></td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: top; text-align: right"><font style="font-size: 10pt">222,301</font></td>
<td style="vertical-align: top"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom"><font style="font-size: 10pt">Payable to Mabwe Minerals, Inc.</font></td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top; text-align: right"><font style="font-size: 10pt">1,956,036</font></td>
<td style="vertical-align: top"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom"><font style="font-size: 10pt">Due to related parties</font></td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top; text-align: right"><font style="font-size: 10pt">426,456</font></td>
<td style="vertical-align: top"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom"><font style="font-size: 10pt">Unearned revenue</font></td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top; text-align: right"><font style="font-size: 10pt">      108,740</font></td>
<td style="vertical-align: top"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom"><font style="font-size: 10pt">Asset retirement obligation</font></td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top; text-align: right"><font style="font-size: 10pt">83,350</font></td>
<td style="vertical-align: top"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom"><font style="font-size: 10pt">Loans payable</font></td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top; text-align: right"><font style="font-size: 10pt">129,500</font></td>
<td style="vertical-align: top"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom"><font style="font-size: 10pt">Securitized loan/overdraft default (a)</font></td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top; border-bottom: black 2.25pt double"> </td>
<td style="vertical-align: top; border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">413,489</font></td>
<td style="vertical-align: top"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom"><font style="font-size: 10pt">Total liabilities</font></td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: top; text-align: right"><font style="font-size: 10pt">(3,339,872</font></td>
<td style="vertical-align: top"><font style="font-size: 10pt">) </font></td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; border-bottom: black 1.5pt solid">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>% of </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Outstanding </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Shares</b></p></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: top"> </td>
<td colspan="2" style="vertical-align: bottom; border-bottom: black 1.5pt solid">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Carrying </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Amount of </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Investment</b></p></td>
<td style="vertical-align: bottom"> </td></tr>
<tr>
<td style="vertical-align: bottom; width: 78%"> </td>
<td style="vertical-align: bottom; width: 9%"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: top; width: 1%"> </td>
<td style="vertical-align: top; width: 1%"> </td>
<td style="vertical-align: top; width: 9%"> </td>
<td style="vertical-align: top; width: 1%"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom"><font style="font-size: 10pt">MAB-C at December 31, 2014</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">49</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">% </font></td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: top; text-align: right"><font style="font-size: 10pt">- </font></td>
<td style="vertical-align: top; text-align: right"> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: top"> </td>
<td colspan="6" style="vertical-align: bottom; border-bottom: black 1.5pt solid">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Years Ended</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31,</b></p></td>
<td style="vertical-align: top"> </td></tr>
<tr>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: top"> </td>
<td colspan="2" style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>2014</b></font></td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td colspan="2" style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>2013</b></font></td>
<td style="vertical-align: top"> </td></tr>
<tr>
<td style="vertical-align: bottom; width: 78%"> </td>
<td style="vertical-align: top; width: 1%"> </td>
<td style="vertical-align: top; width: 1%"> </td>
<td style="vertical-align: top; width: 8%"> </td>
<td style="vertical-align: top; width: 1%"> </td>
<td style="vertical-align: top; width: 1%"> </td>
<td style="vertical-align: top; width: 1%"> </td>
<td style="vertical-align: top; width: 8%"> </td>
<td style="vertical-align: top; width: 1%"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom"><font style="font-size: 10pt">MAB-C</font></td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: top; text-align: right"><font style="font-size: 10pt">387,244</font></td>
<td style="vertical-align: top; text-align: right"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: top; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: top; text-align: right"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="14" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>For the Three Months Ended March 31,</b></font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt">2015</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt">2014</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt">Change ($)</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt">Change (%)</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 52%"><font style="font-size: 10pt">REVENUE, NET</font></td>
<td style="width: 1%; text-align: right"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap" style="width: 1%"> </td>
<td style="width: 1%; text-align: right"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap" style="width: 1%"> </td>
<td style="width: 1%; text-align: right"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap" style="width: 1%"> </td>
<td style="width: 1%; text-align: right"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right"><font style="font-size: 10pt">0</font></td>
<td nowrap="nowrap" style="width: 1%"><font style="font-size: 10pt">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">COST OF SALES</font></td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">0</font></td>
<td nowrap="nowrap"><font style="font-size: 10pt">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">GROSS PROFIT</font></td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">0</font></td>
<td nowrap="nowrap"><font style="font-size: 10pt">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">OPERATING EXPENSES</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-indent: 9pt"><font style="font-size: 10pt">Salary expense and salary related costsD</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">0</font></td>
<td nowrap="nowrap"><font style="font-size: 10pt">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-indent: 9pt"><font style="font-size: 10pt">Professional, consulting and marketing fees</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">12,418</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">(12,418</font></td>
<td nowrap="nowrap"><font style="font-size: 10pt">)</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-100</font></td>
<td nowrap="nowrap"><font style="font-size: 10pt">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-indent: 9pt"><font style="font-size: 10pt">Extraction Cost</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">130,738</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">(130,738</font></td>
<td nowrap="nowrap"><font style="font-size: 10pt">)</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-100</font></td>
<td nowrap="nowrap"><font style="font-size: 10pt">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-indent: 9pt"><font style="font-size: 10pt">Site Development Cost</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">16,996</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">(16,996</font></td>
<td nowrap="nowrap"><font style="font-size: 10pt">)</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-100</font></td>
<td nowrap="nowrap"><font style="font-size: 10pt">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-indent: 9pt"><font style="font-size: 10pt">Selling, General and administrative</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">17,749</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">(17,749</font></td>
<td nowrap="nowrap"><font style="font-size: 10pt">)</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-100</font></td>
<td nowrap="nowrap"><font style="font-size: 10pt">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-indent: 9pt"><font style="font-size: 10pt">Depreciation</font></td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">199</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(199</font></td>
<td nowrap="nowrap"><font style="font-size: 10pt">)</font></td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-100</font></td>
<td nowrap="nowrap"><font style="font-size: 10pt">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-indent: 9pt"><font style="font-size: 10pt">Total operating expenses</font></td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">178,100</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(178,100</font></td>
<td nowrap="nowrap"><font style="font-size: 10pt">)</font></td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-100</font></td>
<td nowrap="nowrap"><font style="font-size: 10pt">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Loss from operations</font></td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(178,100</font></td>
<td nowrap="nowrap"><font style="font-size: 10pt">)</font></td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">178,100</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-100</font></td>
<td nowrap="nowrap"><font style="font-size: 10pt">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">OTHER INCOME (EXPENSE)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Interest Income (Expense)</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">(15,818</font></td>
<td nowrap="nowrap"><font style="font-size: 10pt">)</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">15,818</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-100</font></td>
<td nowrap="nowrap"><font style="font-size: 10pt">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Loss on Investment - W.G.B. Kinsey - Equity Method</font></td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(12,367</font></td>
<td nowrap="nowrap"><font style="font-size: 10pt">)</font></td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">12,367</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-100</font></td>
<td nowrap="nowrap"><font style="font-size: 10pt">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Gain on deconsolidation, net of impairment of loan from MAB-C</font></td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"> </td>
<td nowrap="nowrap"> </td>
<td> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Total other income (expense)</font></td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(28,185</font></td>
<td nowrap="nowrap"><font style="font-size: 10pt">)</font></td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">28,185</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-100</font></td>
<td nowrap="nowrap"><font style="font-size: 10pt">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Income (loss) before income taxes</font></td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(206,285</font></td>
<td nowrap="nowrap"><font style="font-size: 10pt">)</font></td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">206,285</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-100</font></td>
<td nowrap="nowrap"><font style="font-size: 10pt">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Income tax benefit</font></td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">0</font></td>
<td nowrap="nowrap"><font style="font-size: 10pt">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">NET INCOME (LOSS)</font></td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(206,285</font></td>
<td nowrap="nowrap"><font style="font-size: 10pt">)</font></td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">206,285</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-100</font></td>
<td nowrap="nowrap"><font style="font-size: 10pt">%</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> <b> </b></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; background-color: white">
<tr>
<td style="width: 80%"> </td>
<td style="width: 9%; text-align: center"><font style="font-size: 10pt"><b>(UNAUDITED)</b></font></td>
<td style="width: 1%"> </td>
<td style="width: 9%"> </td>
<td style="width: 1%"> </td></tr>
<tr>
<td> </td>
<td style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>March 31, 2015</b></font></td>
<td style="text-align: center"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>December 31, 2014</b></font></td>
<td style="text-align: center"> </td></tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="background-color: #CCEEFF">
<td><font style="font-size: 10pt">Assets of discontinued operations</font></td>
<td style="text-align: right"><font style="font-size: 10pt"> -</font></td>
<td style="text-align: right"> </td>
<td style="text-align: right"><font style="font-size: 10pt"> -</font></td>
<td style="text-align: right"> </td></tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="background-color: #CCEEFF">
<td><font style="font-size: 10pt">Liabilities of discontinued operations</font></td>
<td style="text-align: right"><font style="font-size: 10pt"> -</font></td>
<td style="text-align: right"> </td>
<td style="text-align: right"><font style="font-size: 10pt"> -</font></td>
<td style="text-align: right"> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="width: 89%"><font style="font-size: 10pt">Net Assets Purchased</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 8%; text-align: right"> </td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Goodwill</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">25,000</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Purchase Price</font></td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">25,000</font></td>
<td> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Following
is a reconciliation of the aggregate reclamation liability (ARO) associated with MAB-Z's reclamation plan for our mining projects:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>December 31,</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>December 31,</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>2014</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>2013</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 78%"><font style="font-size: 10pt">Long-term reclamation liability — beginning of period</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 8%; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%; text-align: right"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 8%; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Additional obligations incurred</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">83,350</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Accretion of reclamation liability</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Long-term reclamation liability — end of period</font></td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">83,350</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Following
is a reconciliation of the aggregate retirement obligation asset associated with our reclamation plan for our mining projects:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>December 31,</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>December 31,</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>2014</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>2013</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 78%"><font style="font-size: 10pt">Retirement obligation asset — beginning of period</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 8%; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%; text-align: right"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 8%; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Additional obligations incurred</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">83,350</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Amortization of retirement obligation asset</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Retirement obligation asset — end of period</font></td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">83,350</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The Company’s
total deferred tax assets and deferred tax liabilities were as follows at March 31, 2015 and December 31, 2014:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">March
31, 2015</font></td>
<td nowrap="nowrap"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">December
31, 2014</font></td>
<td nowrap="nowrap"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Times New Roman, Times, Serif">Deferred tax assets:</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 78%"><font style="font: 10pt Times New Roman, Times, Serif">Non-benefited  tax losses and credits</font></td>
<td style="width: 1%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; border-bottom: black 1.5pt solid"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 8%; border-bottom: black 1.5pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">28,038,325</font></td>
<td nowrap="nowrap" style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; border-bottom: black 1.5pt solid"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 8%; border-bottom: black 1.5pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">28,024,755</font></td>
<td nowrap="nowrap" style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font: 10pt Times New Roman, Times, Serif">Total deferred tax assets</font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1.5pt solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">28,038,325</font></td>
<td nowrap="nowrap"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1.5pt solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">28,024,755</font></td>
<td nowrap="nowrap"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font: 10pt Times New Roman, Times, Serif">Deferred tax liabilities</font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td nowrap="nowrap"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td nowrap="nowrap"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font: 10pt Times New Roman, Times, Serif">Net book value of assets</font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1.5pt solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td nowrap="nowrap"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1.5pt solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td nowrap="nowrap"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font: 10pt Times New Roman, Times, Serif">Total deferred tax liabilities</font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1.5pt solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td nowrap="nowrap"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1.5pt solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td nowrap="nowrap"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font: 10pt Times New Roman, Times, Serif">Total net deferred tax assets</font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">28,038,325</font></td>
<td nowrap="nowrap"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">28,024,755</font></td>
<td nowrap="nowrap"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font: 10pt Times New Roman, Times, Serif">Valuation allowance</font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(28,038,325</font></td>
<td nowrap="nowrap"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(28,024,755</font></td>
<td nowrap="nowrap"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font: 10pt Times New Roman, Times, Serif">Net deferred tax assets</font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td nowrap="nowrap"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td nowrap="nowrap"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td><font style="font-size: 10pt"><b>Fonon Technologies, Inc. asset purchase for MBMI stock</b></font></td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 89%"><font style="font-size: 10pt">Finish goods and work in process</font></td>
<td style="width: 1%; text-align: right"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 8%; text-align: right"><font style="font-size: 10pt">1,220,642</font></td>
<td nowrap="nowrap" style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Fixed assets - demo and trade show equipment</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">1,439,273</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Fixed assets - office furniture</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">92,789</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Software - infrastructure, operational and web development</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">364,042</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Software for machines for resale</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">1,176,284</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Other intangibles - customer database</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">676,000</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Other intangibles - trademarks</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">35,000</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Other intangibles - design and documentation</font></td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">5,397,000</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Total non-cash asset purchase</font></td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">10,401,030</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Stock issued for purchase of assets from Fonon Technologies, Inc. (at par)</font></td>
<td style="text-align: right"> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">325,242</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Value of warrants issued to Al Pietrangeo</font></td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">374,957</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Additional paid in capital</font></td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">9,700,831</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Total non-cash consideration</font></td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">10,401,030</font></td>
<td nowrap="nowrap"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Warrants
granted to investors and to former CEO, Al Pietrangelo, under terms of the asset purchase and change of control are summarized
as follows:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr>
<td style="vertical-align: bottom; width: 17%; border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Warrants</b></font></td>
<td style="width: 3%"> </td>
<td style="vertical-align: bottom; width: 8%; border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Exercise Price</b></font></td>
<td style="width: 3%"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Date Issued</b></font></td>
<td style="width: 2%"> </td>
<td style="vertical-align: bottom; width: 8%; border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Term</b></font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="text-align: center"><font style="font-size: 10pt">1,600,000</font></td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt">$0.15</font></td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt">Apr - Jun 2013</font></td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt">2 Years</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Significant
inputs in calculating this valuation using the Lattice option-pricing model are as follows:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 41%"> </td>
<td style="width: 29%; border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>March 31, 2015</b></font></td>
<td style="width: 1%"> </td>
<td style="width: 29%; border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>March 30, 2015</b></font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: top; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Expected volatility</font></td>
<td style="text-align: center"><font style="font-size: 10pt">677%</font></td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt">677%</font></td></tr>
<tr style="vertical-align: top; background-color: white">
<td><font style="font-size: 10pt">Expected term</font></td>
<td style="text-align: center"><font style="font-size: 10pt">.25 Years</font></td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt">0.25 Years</font></td></tr>
<tr style="vertical-align: top; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Risk-free interest rate</font></td>
<td style="text-align: center"><font style="font-size: 10pt">0.04%</font></td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt">0.04%</font></td></tr>
<tr style="vertical-align: top; background-color: white">
<td><font style="font-size: 10pt">Expected dividend yield</font></td>
<td style="text-align: center"><font style="font-size: 10pt">0%</font></td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt">0%</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
1220642
0
0
0
12138
83350
83350
25000
25000
433000
413489
129500
83350
108740
1956036
387244
0.49
-206285
-28185
-12367
-15818
17749
16996
130738
12418
206285
206285
28185
12367
15818
178100
-178100
-199
-17749
-16996
-130738
-12418
-100
0
-100
-100
-100
-100
-100
-100
-100
-100
-100
-100
-100
0
0
0
0
1600000
0.15
P2Y
6.77
6.77
0.0004
0.0004
0.00
0.00
P3M
P3M
0
0
25000
-42405
-86875
10401030
9700831
374957
325242
10401030
5397000
35000
1176284
364042
92789
1439273
1220642
83350
28038325
28024755
28038325
28024755
28038325
28024755
28038325
28024755
2500000
1372000
1372000
325241608
110862
36210
104870
110000
7300
187487
152375
100000
6677642
5000000
5000
880500
250000
3000000
1:10
5000000
500000
2026-01-01
2035-01-01
Apr - Jun 2013
46150704
46137134
83350
5397000
374957
325242
34300000