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MABWE MINERALS INC.
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<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b>6.     <u>Related Party Transactions</u></b></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">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.</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">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.</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">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.</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">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.</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On June 1, 2015 the Company entered
into a non-interest bearing note with majority stockholder Fonon Technologies Inc. (“Fonon Technologies”) in the amount
of $10,000.  Since the Company currently has no bank account they have no way to effectively receive funds.  In
light of this circumstance, Fonon Technologies is paying bills on behalf of the Company.  The balance in this related
party payable as of June 30, 2015 was $3,937.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b>7.     <u>Loan Payable –
Related Party</u></b></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal 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: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal 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: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal 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/normal Times New Roman, Times, Serif; margin: 0"><b>10.       <u>Acquisition</u></b></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal 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/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">MAB – Z was essentially a newly formed entity. The
$25,000 was recorded as Goodwill.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="width: 89%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Net Assets Purchased</font></td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 8%; text-align: right; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Goodwill</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">25,000</font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Purchase Price</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">25,000</font></td>
<td style="line-height: 107%"> </td></tr>
</table>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal 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: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><u>Fonon Asset Purchase</u></b></p>
<p style="font: 10pt/normal 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 32,524,161 post reverse split
adjusted 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: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal 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/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Fonon Technologies, Inc. asset purchase for MBMI stock</b></font></td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 89%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Finish goods and work in process</font></td>
<td style="width: 1%; text-align: right; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 8%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,220,642</font></td>
<td style="width: 1%; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Fixed assets - demo and trade show equipment</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,439,273</font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Fixed assets - office furniture</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">92,789</font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Software - infrastructure, operational and web development</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">364,042</font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Software for machines for resale</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,176,284</font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Other intangibles - customer database</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">676,000</font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Other intangibles – trademarks</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">35,000</font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Other intangibles - design and documentation</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">5,397,000</font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Total non-cash asset purchase</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">10,401,030</font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Stock issued for purchase of assets from Fonon Technologies, Inc. (at par)</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">325,242</font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Value of warrants issued to Al Pietrangeo</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">374,957</font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Additional paid in capital</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">9,700,831</font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Total non-cash consideration</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">10,401,030</font></td>
<td style="line-height: 107%"> </td></tr>
</table>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">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: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b>2.    <u>Summary of Significant Accounting
Policies</u></b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><u>Exploration Stage Company/Development Stage Company</u></b></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal 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 deemed effective June 28, 2012 by FINRA
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/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal 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
had the power to direct the activities that most significantly impact MAB-C’s economic performance.</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal 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: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="background-color: white">Under
the terms of the March 30, 2015 SPA the transfer of performing assets by Fonon Technologies into the Company valued at $10,401,030
allowing 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/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="background-color: white"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><u>Principles of Consolidation</u></b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal 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: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal 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 2.5 common shares (post reverse
split adjusted) of Mabwe Minerals Inc. for every share of Series B Preferred Convertible Stock both subject to a one 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: 12pt/normal Times New Roman, Times, Serif; margin: 0">  </p>
<p style="font: 10pt/normal 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 owned 100% of MAB-Z and 25% of Kinsey, which as of October 1, 2014, was returned
to Kinsey, as fully described in Note 3. The Company owned a 49% stake in MAB-C the newly formed corporation; the remaining 51%
ownership in MAB-C was 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: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal 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: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal 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: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="background-color: white">Pursuant
to the March 30, 2015 SPA, (i) the Company sold its assets and liabilities to a company controlled by Al Pietrangelo, (ii) the
Company acquired assets to engage in the business of 3D Metal Laser Printing and (iii) 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 between that new company controlled by Al Pietrangelo and the Company. The transferred assets
of Fonon Technologies valued at $10,401,030 allows the Company to focus operational efforts in the laser material processing business.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><u>Business Combination</u></b></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal 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 32,524,161 shares of its
common stock (post reverse split adjusted), 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: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal 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: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal 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/normal Times New Roman, Times, Serif; margin: 0; text-align: center"></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal 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: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><u>Cash and Cash Equivalents</u></b></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal 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/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><u>Use of Estimates</u></b></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal 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: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><u>Property and Equipment</u></b></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal 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: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><u>Revenue Recognition</u></b></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal 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: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal 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: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><u>Unearned Revenue</u></b></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal 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/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><u>Inventory</u></b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal 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/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal 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: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal 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: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal 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: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><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.</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><u>Stockpile reserves</u></b></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal 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: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal 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 crush 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/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><u>Site Development Cost</u></b></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal 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/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><u>Extraction Cost</u></b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal 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: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><u>Compensated Absences</u></b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal 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/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><u>Impairment or Disposal of Long-Lived
Assets</u></b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal 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 June 30, 2015.</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">  </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><u>Income Taxes</u></b></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal 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/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal 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: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal 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: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><u>Uncertainty in Income Taxes</u></b></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal 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: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><u>Fair Value of Financial Instruments</u></b></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal 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/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal 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: 12pt/normal Times New Roman, Times, Serif; margin: 0">  </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">These inputs are prioritized below:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 5%; font: 10pt/107% Calibri, Helvetica, Sans-Serif"> </td>
<td style="width: 9%; font: 10pt/107% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif">Level 1:</font></td>
<td style="width: 86%; font: 10pt/107% Calibri, Helvetica, Sans-Serif"><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: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 5%; line-height: 107%"> </td>
<td style="width: 9%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Level 2:</font></td>
<td style="width: 86%; line-height: 107%"><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: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 5%; line-height: 107%"> </td>
<td style="width: 9%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Level 3:</font></td>
<td style="width: 86%; line-height: 107%"><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/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal 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: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><u>Stock-Based Compensation</u></b></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal 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/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal 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/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">There was no stock based compensation recognized for the
three and six months ended June 30, 2015 and 2014, respectively.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><u>Earnings or Loss per Common Share</u></b></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal 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
and six months ended June 30, 2015 and 2014 basic and diluted earnings per share were the same as the Company has a loss. </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><u>Goodwill</u></b></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal 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: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal 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: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><u>Reclassifications</u></b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal 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>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><u>Subsequent Events</u></b></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal 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: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><u>Recent Accounting Pronouncements</u></b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal 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: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal 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: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal 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: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal 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/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal 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: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal 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: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b>3.     <u>Deconsolidation of
MAB-C and MAB-Z and Equity Investment</u></b></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">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.</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">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.</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">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.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">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.</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">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 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: </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse">
<tr>
<td style="vertical-align: bottom; width: 89%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Assets</font></td>
<td style="vertical-align: top; width: 1%; line-height: 107%"> </td>
<td style="vertical-align: top; width: 1%; line-height: 107%"> </td>
<td style="vertical-align: top; width: 8%; line-height: 107%"> </td>
<td style="vertical-align: top; width: 1%; line-height: 107%"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Cash</font></td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="vertical-align: top; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">12,138</font></td>
<td style="vertical-align: top; line-height: 107%"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Prepaid expenses</font></td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">24,902</font></td>
<td style="vertical-align: top; line-height: 107%"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Fixed assets</font></td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">4,713</font></td>
<td style="vertical-align: top; line-height: 107%"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Mining rights</font></td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">433,000</font></td>
<td style="vertical-align: top; line-height: 107%"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Goodwill</font></td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">25,000</font></td>
<td style="vertical-align: top; line-height: 107%"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Asset retirement obligation</font></td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="vertical-align: top; border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">83,350</font></td>
<td style="vertical-align: top; line-height: 107%"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Total assets</font></td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; border-bottom: black 2.25pt double; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="vertical-align: top; border-bottom: black 2.25pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">583.103</font></td>
<td style="vertical-align: top; line-height: 107%"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Liabilities</font></td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Accounts payable and accrued liabilities</font></td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="vertical-align: top; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">222,301</font></td>
<td style="vertical-align: top; line-height: 107%"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Payable to Mabwe Minerals, Inc.</font></td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,956,036</font></td>
<td style="vertical-align: top; line-height: 107%"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Due to related parties</font></td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">426,456</font></td>
<td style="vertical-align: top; line-height: 107%"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Unearned revenue</font></td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">      108,740</font></td>
<td style="vertical-align: top; line-height: 107%"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Asset retirement obligation</font></td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">83,350</font></td>
<td style="vertical-align: top; line-height: 107%"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Loans payable</font></td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">129,500</font></td>
<td style="vertical-align: top; line-height: 107%"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Securitized loan/overdraft default (a)</font></td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="vertical-align: top; border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">413,489</font></td>
<td style="vertical-align: top; line-height: 107%"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Total liabilities</font></td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; border-bottom: black 2.25pt double; line-height: 107%"><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; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(3,339,872</font></td>
<td style="vertical-align: top; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">) </font></td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">As of December 28, 2014, the date of deconsolidation, MAB-C’s
net liabilities totaled $2,756,769.</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 7%; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(a)</font></td>
<td style="width: 93%; text-align: justify; line-height: 107%"><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/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">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.</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">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. </p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">The following table sets forth certain information about
the Company’s Investment in MAB-C:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse">
<tr>
<td style="vertical-align: bottom; line-height: 107%"> </td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>% of </b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Outstanding </b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Shares</b></p></td>
<td style="vertical-align: bottom; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td colspan="2" style="vertical-align: bottom; border-bottom: black 1pt solid">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Carrying </b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Amount of </b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Investment</b></p></td>
<td style="vertical-align: bottom; line-height: 107%"> </td></tr>
<tr>
<td style="vertical-align: bottom; width: 79%; line-height: 107%"> </td>
<td style="vertical-align: bottom; width: 9%; line-height: 107%"> </td>
<td style="vertical-align: bottom; width: 1%; line-height: 107%"> </td>
<td style="vertical-align: top; width: 1%; line-height: 107%"> </td>
<td style="vertical-align: top; width: 1%; line-height: 107%"> </td>
<td style="vertical-align: top; width: 8%; line-height: 107%"> </td>
<td style="vertical-align: top; width: 1%; line-height: 107%"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom; line-height: 107%"><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; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">49</font></td>
<td style="vertical-align: bottom; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">% </font></td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="vertical-align: top; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="vertical-align: top; text-align: right; line-height: 107%"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">Gain on deconsolidation, net of impairment of loan from MAB-C</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse">
<tr>
<td style="vertical-align: bottom; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td colspan="6" style="vertical-align: bottom; border-bottom: black 1pt solid">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Years Ended</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31,</b></p></td>
<td style="vertical-align: top; line-height: 107%"> </td></tr>
<tr>
<td style="vertical-align: bottom; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td colspan="2" style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>2014</b></font></td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td colspan="2" style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>2013</b></font></td>
<td style="vertical-align: top; line-height: 107%"> </td></tr>
<tr>
<td style="vertical-align: bottom; width: 78%; line-height: 107%"> </td>
<td style="vertical-align: top; width: 1%; line-height: 107%"> </td>
<td style="vertical-align: top; width: 1%; line-height: 107%"> </td>
<td style="vertical-align: top; width: 8%; line-height: 107%"> </td>
<td style="vertical-align: top; width: 1%; line-height: 107%"> </td>
<td style="vertical-align: top; width: 1%; line-height: 107%"> </td>
<td style="vertical-align: top; width: 1%; line-height: 107%"> </td>
<td style="vertical-align: top; width: 8%; line-height: 107%"> </td>
<td style="vertical-align: top; width: 1%; line-height: 107%"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">MAB-C</font></td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="vertical-align: top; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">387,244</font></td>
<td style="vertical-align: top; text-align: right; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="vertical-align: top; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="vertical-align: top; text-align: right; line-height: 107%"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">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, 2015. On March 30, 2015 the Company transferred its 49% interest in MAB-C to
Mabwe Minerals Inc., a South Dakota corporation.  </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b>4.     <u>Discontinued Operations
– MAB-C</u></b></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal 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/normal Times New Roman, Times, Serif; margin: 0; text-align: center"></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td colspan="32" style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>MABWE MINERALS INC.</b></font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="32" style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>(DBA FONON CORPORATION)</b></font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="32" style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>STATEMENTS OF DISCONTINUED OPERATIONS</b></font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="32" style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>(UNAUDITED)</b></font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="14" style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>For the Three Months Ended June 30,</b></font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="14" style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>For the Six Months Ended June 30,</b></font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2015</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2014</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Change ($)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Change (%)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2015</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2014</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Change ($)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Change (%)</font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 20%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">REVENUE, NET</font></td>
<td style="width: 1%; text-align: right; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 7%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 1%; text-align: right; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 7%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 1%; text-align: right; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 7%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 1%; text-align: right; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 7%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0</font></td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td>
<td style="width: 1%; text-align: right; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 7%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 1%; text-align: right; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 7%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 1%; text-align: right; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 7%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 1%; text-align: right; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 7%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0</font></td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">COST OF SALES</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">GROSS PROFIT</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">OPERATING EXPENSES</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-indent: 22pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Salary expense and salary related costs</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-indent: 22pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Professional, consulting and marketing fees</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">20,471</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(20,471</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-100</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">32,889</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(32,889</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-100</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-indent: 22pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Extraction Cost</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">78,552</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(78,552</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-100</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">209,290</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(209,290</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-100</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-indent: 22pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Site Development Cost</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">17,600</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(17,600</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-100</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">34,596</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(34,596</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-100</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-indent: 22pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Selling, General and administrative</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">15,666</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(15,666</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-100</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">33,415</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(33,415</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-100</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-indent: 22pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Depreciation</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">199</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(199</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-100</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">398</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(398</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-100</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-indent: 22pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Total operating expenses</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">132,488</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(132,488</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-100</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">310,588</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(310,588</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-100</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Loss from operations</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(132,488</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">132,488</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-100</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(310,588</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">310,588</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-100</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">OTHER INCOME (EXPENSE)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Interest Income (Expense)</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(13,868</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">13,868</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-100</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(29,686</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">29,686</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-100</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Loss on Investment - W.G.B. Kinsey - Equity Method</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(12,367</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">12,367</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-100</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Gain on deconsolidation, net of impairment of loan from MAB-C</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Total other income (expense)</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(13,868</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">13,868</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-100</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(42,053</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">42,053</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-100</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Income (loss) before income taxes</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(146,356</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">146,356</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-100</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(352,641</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">352,641</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-100</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Income tax benefit</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">NET INCOME (LOSS)</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(146,356</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">146,356</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-100</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(352,641</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">352,641</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-100</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td></tr>
</table>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>MABWE MINERALS INC.</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(DBA FONON CORPORATION)</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>BALANCE SHEETS FROM DISCONTINUED
OPERATIONS</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"><b> </b></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="6" style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>(UNAUDITED)</b></font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>June 30, 2015</b></font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>December 31, 2014</b></font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 78%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Assets of discontinued operations</font></td>
<td style="width: 1%; text-align: right; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 8%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 1%; text-align: right; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 8%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="width: 1%; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Liabilities of discontinued operations</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td></tr>
</table>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="width: 89%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Net Assets Purchased</font></td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 8%; text-align: right; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Goodwill</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">25,000</font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Purchase Price</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">25,000</font></td>
<td style="line-height: 107%"> </td></tr>
</table>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
0
0
0
12138
83350
83350
25000
25000
433000
413489
129500
83350
108740
1956036
387244
0.49
0.001
P2Y
25000
10401030
9700831
374957
325242
10401030
5397000
35000
1176284
364042
92789
1220642
83350
103347
28024755
103347
28024755
103347
28024755
103347
28024755
2500000
2500000
1142000
1142000
1142000
1142000
110862
36210
104870
11000
7300
187487
152375
10000
667764
500000
5000
880500
250000
300000
1:10
1:10
500000
500000
2035-01-01
2035-01-01
103347
103347
83350
28550000
MBMI
1439273
32524161
230000
575000
12500000
Colorado
2001-01-22
-362310
-136501
-319905
-48916
-352641
-146356
146356
352641
-42053
-13868
13868
42053
-12367
12367
-29686
-13868
13868
29686
-362310
-135171
-319905
-48294
-310588
-132488
132488
310588
362310
136501
319905
48916
310588
132488
-132488
-310588
281838
278783
398
199
-199
-398
33415
15666
-15666
-33415
34596
17600
-17600
-34596
209290
78552
-78552
-209290
32889
20471
-20471
-32889
-362310
-487812
-319905
-194650
-352641
-146356
146356
352641
-100
-100
0
0
-100
-100
-100
-100
-100
0
-100
-100
-100
-100
-100
-100
-100
-100
-100
-100
-100
-100
-100
-100
-100
-100
0
0
0
0
0
0
0
0
-88659681
-88297371
250000
1:10
1179520
10119192
2415
10078070
-494665
553683
178726
98137498
87609934
46570
14046
41122
497080
413489
3937
7440360
1220642
2415
806277
414365
840
55653
21197
11252
24821
1772
3343
12000
12000
69220
99680
39350
33573
-362310
-135171
-319905
-48294
1330
622
1330
622
-352641
-146356
-352641
-146356
-0.01
-0.03
-0.01
-0.01
-0.01
-0.01
-0.01
-0.00
46570000
14034303
30757148
14194304
-840
-493600
78057
-196489
1575
-22817
12367
6300
281838
199
-840
-34456
459144
459144
57617
6300
-1455
10401030
5397000
35000
676000
1176284
364042
92789
1439273
1220642
10401030
9700831
374957
325242
534015
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b>8.</b>       <b> <u>Loan
Payable – Other</u></b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal 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: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal 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: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal 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: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal 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: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal 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/normal Times New Roman, Times, Serif; margin: 0"><b>11.       <u>Mining
rights</u></b></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">After to deconsolidation as discussed
in Note 3, for MAB-C, as of June 30, 2015 and December 31, 2014, the Company had no value in mining rights.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>12.</b>       <b> <u>Asset
Retirement Obligations</u></b></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Prior to deconsolidation as discussed
in Note 3, as of December 31, 2014, MAB-Z had recognized the following asset and liability for reclamation relative to the mining
activities at the Dodge Mine:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b> </b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Long-Term Reclamation Liability and
Retirement Obligation Asset</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b> </b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Following is a reconciliation of the
aggregate reclamation liability (ARO) associated with MAB-Z's reclamation plan for our mining projects:</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>December 31,</b></font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>December 31,</b></font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>2014</b></font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>2013</b></font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 78%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Long-term reclamation liability — beginning of period</font></td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 8%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 1%; text-align: right; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 8%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="width: 1%; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Additional obligations incurred</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">83,350</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Accretion of reclamation liability</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Long-term reclamation liability — end of period</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">83,350</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Following is a reconciliation of the
aggregate retirement obligation asset associated with our reclamation plan for our mining projects:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>December 31,</b></font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>December 31,</b></font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>2014</b></font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>2013</b></font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 78%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Retirement obligation asset — beginning of period</font></td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 8%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 1%; text-align: right; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 8%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="width: 1%; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Additional obligations incurred</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">83,350</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Amortization of retirement obligation asset</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Retirement obligation asset — end of period</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">83,350</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal 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. As of June 30, 2015, there is no change to the value of the
ARO on the Company’s financial statements.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b>13.        <u>Stockholders’
Equity (Deficit)</u></b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><u>Preferred Convertible Series B Stock (RRHI)</u></b></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">As of June 30, 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 2.5 shares (post reverse split adjusted) of MBMI common stock for every share of
Preferred Convertible Series B 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. On July 29, 2015 the Company’s board
of directors authorized a 1:10 reverse split.  All shares herein are reflected post-split in accordance with SAB Topic
4C.</p>
<p style="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">During the six months ended June 30,
2015, there were no sales of RRHI Preferred Convertible Series B Stock.</p>
<p style="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">During the six months ended June 30,
2015, 230,000 of RRHI Preferred Convertible Series B Stock were converted to shares of common stock in MBMI.   The
issuance of the resultant 575,000 (post reverse split adjusted) 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 47,145,145.  An additional 145
post reverse split shares were create due to rounding where the Company chose not to issue fractional share. </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">As of June 30, 2015, RRHI had 1,142,000
shares of RRHI Preferred Convertible Series B Stock issued and outstanding which if converted would result in the issuance of 2,855,000
post reverse split adjusted common shares of MBMI.  There have been no conversions RRHI Preferred Convertible Series
B Stock as of June 30, 2015.</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><u>Common Stock</u></b></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal 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: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On July 29, 2015 the Company’s
board of directors authorized a 1:10 reverse split.  All shares herein are reflected post-split in accordance with SAB
Topic 4C.</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="background-color: white">During
the six months ended June 30, 2015 the Company issued 32,524,161 post reverse split adjusted shares of common stock to bring the
total issued and outstanding shares to 46,570,000.</font></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">During the year ended December 31, 2014
the Company issued 11,000 post reverse split adjusted 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 10,000 post reverse split adjusted
common shares for a cash price of $5,000 ($.50/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: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">During the year ended December 31, 2013,
the Company issued 667,764 post reverse split shares of stock through private placement for cash in the amount of $880,500. 310,500
post reverse split adjusted warrants were issued with these placements, exercisable for 1 year at a price of $1.50 per share. The
Company also issued 159,000 post reverse split adjusted 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: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">During the year ended December 31, 2012,
the Company issued: 500,000 post reverse split adjusted shares of common stock through private placement for cash in the amount
of $250,000; 500,000 post reverse split adjusted shares of common stock valued at $500,000 to purchase for MAB-C, a 25% ownership
in Kinsey per the Equity Exchange Agreement; 659,000 post reverse split adjusted shares of common stock valued at $152,375 for
services rendered and to be rendered; and 300,000 post reverse split 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/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal 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: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><u>Common Stock</u></b></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On June 29, 2012, the Company issued
7,907,882 post reverse split reverse adjusted 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 1,351,075 post reverse split adjusted shares
of common stock to CCE in consideration for the conversion of the convertible notes outstanding to common stock. During 2011, the
Company issued 1,099,283 post reverse spilt adjusted 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 500,000 post reverse split adjusted 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 50,000,000 allowing the issuance to CCE of 1,351,075 shares of the Company’s
stock.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">As of June 30, 2015, the Company has
46,570,000 post reverse split adjusted shares issued and outstanding.</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="margin: 0pt"></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b>14.       <u>Income
Taxes</u></b></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal 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/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">The Company’s total deferred tax assets and deferred
tax liabilities were as follows at June 30, 2015 and December 31, 2014:</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">June 30,</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">2015</p></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">December 31, 2014</font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Deferred tax assets:</font></td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 78%; line-height: 107%; padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif">Non-benefited  tax losses and credits</font></td>
<td style="width: 1%; text-align: right; line-height: 107%; padding-bottom: 1pt"> </td>
<td style="width: 1%; line-height: 107%; border-bottom: Black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 8%; text-align: right; line-height: 107%; border-bottom: Black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif">103,347</font></td>
<td style="width: 1%; line-height: 107%; padding-bottom: 1pt"> </td>
<td style="width: 1%; text-align: right; line-height: 107%; padding-bottom: 1pt"> </td>
<td style="width: 1%; line-height: 107%; border-bottom: Black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 8%; text-align: right; line-height: 107%; border-bottom: Black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif">28,024,755</font></td>
<td style="width: 1%; line-height: 107%; padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%; padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif">Total deferred tax assets</font></td>
<td style="text-align: right; line-height: 107%; padding-bottom: 1pt"> </td>
<td style="line-height: 107%; border-bottom: Black 1pt solid"> </td>
<td style="text-align: right; line-height: 107%; border-bottom: Black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif">103,347</font></td>
<td style="line-height: 107%; padding-bottom: 1pt"> </td>
<td style="text-align: right; line-height: 107%; padding-bottom: 1pt"> </td>
<td style="line-height: 107%; border-bottom: Black 1pt solid"> </td>
<td style="text-align: right; line-height: 107%; border-bottom: Black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif">28,024,755</font></td>
<td style="line-height: 107%; padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Deferred tax liabilities</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%; padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif">Net book value of assets</font></td>
<td style="text-align: right; line-height: 107%; padding-bottom: 1pt"> </td>
<td style="line-height: 107%; border-bottom: Black 1pt solid"> </td>
<td style="text-align: right; line-height: 107%; border-bottom: Black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%; padding-bottom: 1pt"> </td>
<td style="text-align: right; line-height: 107%; padding-bottom: 1pt"> </td>
<td style="line-height: 107%; border-bottom: Black 1pt solid"> </td>
<td style="text-align: right; line-height: 107%; border-bottom: Black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%; padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%; padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif">Total deferred tax liabilities</font></td>
<td style="text-align: right; line-height: 107%; padding-bottom: 1pt"> </td>
<td style="line-height: 107%; border-bottom: Black 1pt solid"> </td>
<td style="text-align: right; line-height: 107%; border-bottom: Black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%; padding-bottom: 1pt"> </td>
<td style="text-align: right; line-height: 107%; padding-bottom: 1pt"> </td>
<td style="line-height: 107%; border-bottom: Black 1pt solid"> </td>
<td style="text-align: right; line-height: 107%; border-bottom: Black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%; padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%; padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif">Total net deferred tax assets</font></td>
<td style="text-align: right; line-height: 107%; padding-bottom: 1pt"> </td>
<td style="line-height: 107%; border-bottom: Black 1pt solid"> </td>
<td style="text-align: right; line-height: 107%; border-bottom: Black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif">103,347</font></td>
<td style="line-height: 107%; padding-bottom: 1pt"> </td>
<td style="text-align: right; line-height: 107%; padding-bottom: 1pt"> </td>
<td style="line-height: 107%; border-bottom: Black 1pt solid"> </td>
<td style="text-align: right; line-height: 107%; border-bottom: Black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif">28,024,755</font></td>
<td style="line-height: 107%; padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%; padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif">Valuation allowance</font></td>
<td style="text-align: right; line-height: 107%; padding-bottom: 1pt"> </td>
<td style="line-height: 107%; border-bottom: Black 1pt solid"> </td>
<td style="text-align: right; line-height: 107%; border-bottom: Black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif">(103,347</font></td>
<td style="line-height: 107%; padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; line-height: 107%; padding-bottom: 1pt"> </td>
<td style="line-height: 107%; border-bottom: Black 1pt solid"> </td>
<td style="text-align: right; line-height: 107%; border-bottom: Black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif">(28,024,755</font></td>
<td style="line-height: 107%; padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%; padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif">Net deferred tax assets</font></td>
<td style="text-align: right; line-height: 107%; padding-bottom: 1pt"> </td>
<td style="line-height: 107%; border-bottom: Black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%; border-bottom: Black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%; padding-bottom: 1pt"> </td>
<td style="text-align: right; line-height: 107%; padding-bottom: 1pt"> </td>
<td style="line-height: 107%; border-bottom: Black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%; border-bottom: Black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%; padding-bottom: 1pt"> </td></tr>
</table>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">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 $103,347 expiring in 2035.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal 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 and
March 2015 experienced a greater than 50% ownership change, so the rules of IRC section 382 apply.</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">At June 30, 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/normal Times New Roman, Times, Serif; margin: 0"><b>15.    <u>Commitments</u></b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><u>Land Lease Agreement</u></b></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal 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: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><u>Letter of Credit</u></b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal 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/normal Times New Roman, Times, Serif; margin: 0"><b>16.       <u>Securitized
Loans</u></b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal 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/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal 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: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal 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/normal Times New Roman, Times, Serif; margin: 0; text-align: center"></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal 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/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal 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: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal 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: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">This current overdraft position puts MAB-Z in default of
that obligation which it continued to aggressively renegotiate.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b>17.           <u>Subsequent
Events</u></b></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On July 29, 2015 the Company, notified
its stockholders of record that stockholders holding approximately 65% of the voting power have approved, by written consent in
lieu of a special meeting on June 10, 2015 the following proposals:</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 12%">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Proposal 1</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p></td>
<td style="width: 1%; text-align: justify; line-height: 107%"> </td>
<td style="width: 87%">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">To amend the Articles of Incorporation
to effect a reverse stock split of the common stock, $.001 par value, of the Company by a ratio of one-for-ten</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p></td></tr>
<tr style="vertical-align: top">
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Proposal 2</font></td>
<td style="text-align: justify; line-height: 107%"> </td>
<td style="text-align: justify; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">To change the domicile of the Company from Wyoming to Delaware</font></td></tr>
<tr style="vertical-align: top">
<td style="text-align: center; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: top">
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Proposal 3</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: justify; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">To change the name of the Company to Fonon Corporation</font></td></tr>
</table>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="background-color: white">The
Company adopted of a new Certificate of Incorporation in place of its former Articles of Incorporation by written consent of our
Board of Directors and the holders of a majority of our issued and outstanding voting securities in lieu of a special meeting.
On May 7, 2015 our Board of Directors approved and, on June 10, 2015 the holders of a majority of our voting capital stock approved
a change of name of the Company to Fonon Corporation, a change of the Company's domicile from Wyoming to Delaware and adoption
of a new Certificate of Incorporation.</font></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">  </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Stockholders who beneficially own an
aggregate of 32,524,161 post reverse split adjusted<b> </b>shares of our Common Stock, or approximately 69% of the 46,570,000
issued and outstanding shares of our Common Stock are the “Consenting Stockholders” or 65% of our capital stock on
a fully diluted basis.  The Consenting Stockholders have the power to vote all of their shares of our Common Stock, which
number constitutes the majority of the issued and outstanding shares of our Common Stock.  The Consenting Stockholders
have consented to the proposed action set forth herein and had and have the power to pass the proposed corporate action without
the concurrence of any of our other stockholders.  On July 29, 2015 the Company’s board of directors authorized
a 1:10 reverse split.  All shares herein are reflected post-split in accordance with SAB Topic 4C.</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">  </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The par value of the Common Stock will
not be changed in connection with the reverse split. The reverse split will be realized simultaneously and in the same ratio for
all shares of the common stock. All holders of Common Stock will be affected uniformly by the Reverse Split, which will have no
effect on the proportionate holdings of any of our stockholders, except for possible changes due to the treatment of fractional
shares resulting from the Reverse Split. In lieu of issuing fractional shares, the Company will round up in the event a stockholder
would be entitled to receive less than one share of Common Stock  as a result of the Reverse Split. In addition,
the split will not affect any holder of Common Stock’s proportionate voting power (subject to the treatment of fractional
shares), and all shares of Common Stock will remain fully paid and non-assessable. The number of authorized and issued shares of
the Company’s various series of preferred stock will not be affected in any way by the Reverse Split. The reverse split resulted
in the issuance of 145 shares of common stock being issued.</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Financial Regulatory Authority (“FINRA”)
has notified us that for purposes of trading on the OTCQB that the Reverse Split and name change was effective August 20, 2015.</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The following chart reflects the changes
in our capital structure following the reverse split, the top row reflecting the pre-split capital structure and the bottom row
reflecting the post-split capital structure:</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td colspan="2" style="border-bottom: black 1pt solid">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Authorized Shares of</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Common Stock</p></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Issued and</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Outstanding Shares</p></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Reserved but Unissued</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Available for Issuance</font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 5%; line-height: 107%"> </td>
<td style="width: 15%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">500,000,000</font></td>
<td style="width: 2%; line-height: 107%"> </td>
<td style="width: 2%; line-height: 107%"> </td>
<td style="width: 4%; line-height: 107%"> </td>
<td style="width: 14%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">465,700,000</font></td>
<td style="width: 2%; line-height: 107%"> </td>
<td style="width: 2%; line-height: 107%"> </td>
<td style="width: 7%; line-height: 107%"> </td>
<td style="width: 15%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0</font></td>
<td style="width: 2%; line-height: 107%"> </td>
<td style="width: 2%; line-height: 107%"> </td>
<td style="width: 6%; line-height: 107%"> </td>
<td style="width: 20%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">34,300,000</font></td>
<td style="width: 2%; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">500,000,000</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">46,570,000</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">453,430,000</font></td>
<td style="line-height: 107%"> </td></tr>
</table>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b>Reasons for the Reverse Split</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The primary purpose for effecting the
Reverse Split is to increase the number of available shares under the Stock Purchase Agreement to allow the Company to issue
to Fonon Technologies an additional 65,000,000 shares of our common stock on a post-split basis split to achieve ownership by Fonon
Technologies of 97,524,161<b> </b>shares or 85% of the Company's 115,000,000 post-split issued and outstanding shares of capital
stock on a fully diluted basis, which includes a warrant issued to Al Pietrangelo, former President of the Company, to purchase
12,500,000 shares of the Company's common stock for a period of two years at an exercise price of $0.001 per share.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The reverse split the number of authorized
but unissued shares of our common stock relative to the number of issued shares of Common Stock will be increased. This increased
number of authorized but unissued shares of common stock could be issued by the board without further stockholder approval, which
could result in dilution to the holders of the common stock. The increased proportion of unissued authorized shares to issued shares
could also, under certain circumstances, have an anti-takeover effect. For example, the issuance of a large block of common stock
could dilute the ownership of a person seeking to effect a change in the composition of our board of directors or contemplating
a tender offer or other transaction. The reverse split is not being proposed in response to any effort of which the company is
aware to accumulate shares of common stock or obtain control of the Company.</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><u>Exploration Stage Company/Development Stage Company</u></b></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal 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 deemed effective June 28, 2012 by FINRA
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/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal 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
had the power to direct the activities that most significantly impact MAB-C’s economic performance.</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal 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: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="background-color: white">Under
the terms of the March 30, 2015 SPA the transfer of performing assets by Fonon Technologies into the Company valued at $10,401,030
allowing 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/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><u>Business Combination</u></b></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal 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 32,524,161 shares of its
common stock (post reverse split adjusted), 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: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal 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: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal 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/normal Times New Roman, Times, Serif; margin: 0; text-align: center"></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal 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/normal Times New Roman, Times, Serif; margin: 0"><b><u>Cash and Cash Equivalents</u></b></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal 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/normal Times New Roman, Times, Serif; margin: 0"><b><u>Use of Estimates</u></b></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal 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/normal Times New Roman, Times, Serif; margin: 0"><b><u>Property and Equipment</u></b></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal 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/normal Times New Roman, Times, Serif; margin: 0"><b><u>Revenue Recognition</u></b></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal 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: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal 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/normal Times New Roman, Times, Serif; margin: 0"><b><u>Unearned Revenue</u></b></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal 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/normal Times New Roman, Times, Serif; margin: 0"><b><u>Inventory</u></b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal 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/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal 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: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal 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: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal 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: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><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.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><u>Stockpile reserves</u></b></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal 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: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal 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 crush 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/normal Times New Roman, Times, Serif; margin: 0"><b><u>Site Development Cost</u></b></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal 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/normal Times New Roman, Times, Serif; margin: 0"><b><u>Extraction Cost</u></b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal 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/normal Times New Roman, Times, Serif; margin: 0"><b><u>Compensated Absences</u></b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal 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/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><u>Impairment or Disposal of Long-Lived
Assets</u></b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal 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 June 30, 2015.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><u>Income Taxes</u></b></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal 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/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal 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: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal 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/normal Times New Roman, Times, Serif; margin: 0"><b><u>Uncertainty in Income Taxes</u></b></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal 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/normal Times New Roman, Times, Serif; margin: 0"><b><u>Fair Value of Financial Instruments</u></b></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal 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/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal 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/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">These inputs are prioritized below:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 5%; font: 10pt/107% Calibri, Helvetica, Sans-Serif"> </td>
<td style="width: 9%; font: 10pt/107% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif">Level 1:</font></td>
<td style="width: 86%; font: 10pt/107% Calibri, Helvetica, Sans-Serif"><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: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 5%; line-height: 107%"> </td>
<td style="width: 9%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Level 2:</font></td>
<td style="width: 86%; line-height: 107%"><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: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 5%; line-height: 107%"> </td>
<td style="width: 9%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Level 3:</font></td>
<td style="width: 86%; line-height: 107%"><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/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal 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/normal Times New Roman, Times, Serif; margin: 0"><b><u>Stock-Based Compensation</u></b></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal 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/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal 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/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">There was no stock based compensation recognized for the
three and six months ended June 30, 2015 and 2014, respectively.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><u>Earnings or Loss per Common Share</u></b></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal 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 and
six months ended June 30, 2015 and 2014 basic and diluted earnings per share were the same as the Company has a loss.</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><u>Goodwill</u></b></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal 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: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal 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/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><u>Reclassifications</u></b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal 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>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><u>Subsequent Events</u></b></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal 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/normal Times New Roman, Times, Serif; margin: 0"><b><u>Recent Accounting Pronouncements</u></b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal 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: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal 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: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal 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: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal 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/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal 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: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal 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: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse">
<tr>
<td style="vertical-align: bottom; width: 89%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Assets</font></td>
<td style="vertical-align: top; width: 1%; line-height: 107%"> </td>
<td style="vertical-align: top; width: 1%; line-height: 107%"> </td>
<td style="vertical-align: top; width: 8%; line-height: 107%"> </td>
<td style="vertical-align: top; width: 1%; line-height: 107%"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Cash</font></td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="vertical-align: top; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">12,138</font></td>
<td style="vertical-align: top; line-height: 107%"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Prepaid expenses</font></td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">24,902</font></td>
<td style="vertical-align: top; line-height: 107%"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Fixed assets</font></td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">4,713</font></td>
<td style="vertical-align: top; line-height: 107%"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Mining rights</font></td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">433,000</font></td>
<td style="vertical-align: top; line-height: 107%"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Goodwill</font></td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">25,000</font></td>
<td style="vertical-align: top; line-height: 107%"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Asset retirement obligation</font></td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="vertical-align: top; border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">83,350</font></td>
<td style="vertical-align: top; line-height: 107%"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Total assets</font></td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; border-bottom: black 2.25pt double; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="vertical-align: top; border-bottom: black 2.25pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">583.103</font></td>
<td style="vertical-align: top; line-height: 107%"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Liabilities</font></td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Accounts payable and accrued liabilities</font></td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="vertical-align: top; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">222,301</font></td>
<td style="vertical-align: top; line-height: 107%"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Payable to Mabwe Minerals, Inc.</font></td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,956,036</font></td>
<td style="vertical-align: top; line-height: 107%"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Due to related parties</font></td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">426,456</font></td>
<td style="vertical-align: top; line-height: 107%"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Unearned revenue</font></td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">      108,740</font></td>
<td style="vertical-align: top; line-height: 107%"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Asset retirement obligation</font></td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">83,350</font></td>
<td style="vertical-align: top; line-height: 107%"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Loans payable</font></td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">129,500</font></td>
<td style="vertical-align: top; line-height: 107%"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Securitized loan/overdraft default (a)</font></td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="vertical-align: top; border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">413,489</font></td>
<td style="vertical-align: top; line-height: 107%"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Total liabilities</font></td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; border-bottom: black 2.25pt double; line-height: 107%"><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; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(3,339,872</font></td>
<td style="vertical-align: top; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">) </font></td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">The following table sets forth certain information about
the Company’s Investment in MAB-C:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse">
<tr>
<td style="vertical-align: bottom; line-height: 107%"> </td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>% of </b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Outstanding </b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Shares</b></p></td>
<td style="vertical-align: bottom; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td colspan="2" style="vertical-align: bottom; border-bottom: black 1pt solid">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Carrying </b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Amount of </b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Investment</b></p></td>
<td style="vertical-align: bottom; line-height: 107%"> </td></tr>
<tr>
<td style="vertical-align: bottom; width: 79%; line-height: 107%"> </td>
<td style="vertical-align: bottom; width: 9%; line-height: 107%"> </td>
<td style="vertical-align: bottom; width: 1%; line-height: 107%"> </td>
<td style="vertical-align: top; width: 1%; line-height: 107%"> </td>
<td style="vertical-align: top; width: 1%; line-height: 107%"> </td>
<td style="vertical-align: top; width: 8%; line-height: 107%"> </td>
<td style="vertical-align: top; width: 1%; line-height: 107%"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom; line-height: 107%"><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; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">49</font></td>
<td style="vertical-align: bottom; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">% </font></td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="vertical-align: top; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="vertical-align: top; text-align: right; line-height: 107%"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">Gain on deconsolidation, net of impairment of loan from MAB-C</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse">
<tr>
<td style="vertical-align: bottom; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td colspan="6" style="vertical-align: bottom; border-bottom: black 1pt solid">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Years Ended</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31,</b></p></td>
<td style="vertical-align: top; line-height: 107%"> </td></tr>
<tr>
<td style="vertical-align: bottom; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td colspan="2" style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>2014</b></font></td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td colspan="2" style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>2013</b></font></td>
<td style="vertical-align: top; line-height: 107%"> </td></tr>
<tr>
<td style="vertical-align: bottom; width: 78%; line-height: 107%"> </td>
<td style="vertical-align: top; width: 1%; line-height: 107%"> </td>
<td style="vertical-align: top; width: 1%; line-height: 107%"> </td>
<td style="vertical-align: top; width: 8%; line-height: 107%"> </td>
<td style="vertical-align: top; width: 1%; line-height: 107%"> </td>
<td style="vertical-align: top; width: 1%; line-height: 107%"> </td>
<td style="vertical-align: top; width: 1%; line-height: 107%"> </td>
<td style="vertical-align: top; width: 8%; line-height: 107%"> </td>
<td style="vertical-align: top; width: 1%; line-height: 107%"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">MAB-C</font></td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="vertical-align: top; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">387,244</font></td>
<td style="vertical-align: top; text-align: right; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="vertical-align: top; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="vertical-align: top; text-align: right; line-height: 107%"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td colspan="32" style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>MABWE MINERALS INC.</b></font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="32" style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>(DBA FONON CORPORATION)</b></font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="32" style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>STATEMENTS OF DISCONTINUED OPERATIONS</b></font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="32" style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>(UNAUDITED)</b></font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="14" style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>For the Three Months Ended June 30,</b></font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="14" style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>For the Six Months Ended June 30,</b></font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2015</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2014</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Change ($)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Change (%)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2015</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2014</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Change ($)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Change (%)</font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 20%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">REVENUE, NET</font></td>
<td style="width: 1%; text-align: right; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 7%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 1%; text-align: right; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 7%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 1%; text-align: right; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 7%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 1%; text-align: right; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 7%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0</font></td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td>
<td style="width: 1%; text-align: right; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 7%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 1%; text-align: right; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 7%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 1%; text-align: right; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 7%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 1%; text-align: right; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 7%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0</font></td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">COST OF SALES</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">GROSS PROFIT</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">OPERATING EXPENSES</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-indent: 22pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Salary expense and salary related costs</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-indent: 22pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Professional, consulting and marketing fees</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">20,471</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(20,471</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-100</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">32,889</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(32,889</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-100</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-indent: 22pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Extraction Cost</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">78,552</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(78,552</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-100</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">209,290</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(209,290</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-100</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-indent: 22pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Site Development Cost</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">17,600</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(17,600</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-100</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">34,596</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(34,596</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-100</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-indent: 22pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Selling, General and administrative</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">15,666</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(15,666</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-100</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">33,415</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(33,415</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-100</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-indent: 22pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Depreciation</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">199</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(199</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-100</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">398</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(398</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-100</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-indent: 22pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Total operating expenses</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">132,488</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(132,488</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-100</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">310,588</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(310,588</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-100</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Loss from operations</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(132,488</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">132,488</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-100</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(310,588</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">310,588</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-100</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">OTHER INCOME (EXPENSE)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Interest Income (Expense)</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(13,868</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">13,868</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-100</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(29,686</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">29,686</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-100</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Loss on Investment - W.G.B. Kinsey - Equity Method</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(12,367</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">12,367</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-100</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Gain on deconsolidation, net of impairment of loan from MAB-C</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Total other income (expense)</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(13,868</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">13,868</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-100</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(42,053</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">42,053</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-100</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Income (loss) before income taxes</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(146,356</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">146,356</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-100</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(352,641</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">352,641</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-100</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Income tax benefit</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">NET INCOME (LOSS)</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(146,356</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">146,356</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-100</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(352,641</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">352,641</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-100</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td></tr>
</table>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>MABWE MINERALS INC.</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(DBA FONON CORPORATION)</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>BALANCE SHEETS FROM DISCONTINUED
OPERATIONS</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"><b> </b></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="6" style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>(UNAUDITED)</b></font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>June 30, 2015</b></font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>December 31, 2014</b></font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 78%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Assets of discontinued operations</font></td>
<td style="width: 1%; text-align: right; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 8%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 1%; text-align: right; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 8%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="width: 1%; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Liabilities of discontinued operations</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td></tr>
</table>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b>1.    <u>Organization and Basis of
Presentation</u></b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">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.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">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. On July 29, 2015 the Company’s board of directors authorized a 1:10
reverse split.  All shares herein are reflected post-split in accordance with the Staff Accounting Bulletin (“SAB”)
Topic 4C.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company was incorporated under the
laws of the state of Colorado on January 22, 2001 under the name Pacific InterMedia, Inc. (“Pacific”).</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">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 403,400 post reverse split adjusted shares of its common stock issued and outstanding comprised of 103,400 registered shares
held by approximately 25 stockholders and 300,000 shares of restricted stock held by Pacific’s founder and sole officer and
director.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">As a material aspect of the acquisition,
Pacific re-acquired and cancelled the 300,000 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, 103,400 shares, as all of its
issued and outstanding capital stock prior to completion of the Raptor acquisition.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Pursuant to terms of the acquisition
agreement, all of the issued and outstanding common stock of Raptor, 1,916,126 post reverse split adjusted 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.  </p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The acquisition transaction was treated
as a reverse merger, with Raptor considered the accounting acquirer.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company was a provider of integrated
high-speed Ethernet switching systems which enabled new emerging high bandwidth critical applications.  The data network
market areas that the Company was targeting included video, storage, and Internet Protocol telephony and technology refresh.</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company’s service contract
with a Government prime contractor was almost depleted as of March 31, 2011 and consequently, revenues for the quarter was close
to zero.  Taking into account the status of the U.S. Government budget at that time 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.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">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.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">All of the convertible notes payable
of the Company had 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
5,000,000 shares of their common stock to CCE, they were issued 10,992,831 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 5,0000,000 shares, and the Company then issued an additional, 7,907,882 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 1,351,075
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. Then again, on July 29, 2015 the Company’s board of directors authorized a 1:10
reverse split.  All shares herein are reflected on a post-split basis in accordance with the SAB Topic 4C.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Effective with the change in control
and conversion of notes and liabilities to equity, the Company entered the exploration stage on June 29, 2012. </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">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 2.5 common shares of Mabwe Minerals Inc. for every
share of Series B Preferred Stock post reverse split adjusted, 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.  </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company formally, on September 30,
2012, appointed Tapiwa Gurupira, a 50% stakeholder of MAB-Z as a Director of Mabwe Minerals Inc.</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal 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. 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 became the operating arm of Mabwe Minerals
Inc., with the Company being the primary beneficiary of all the activities of MAB-C. At that 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.</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">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.</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On December 28, 2014, the Company removed
Tapiwa Gurupira, a 50% stakeholder of MAB-Z as a Director of Mabwe Minerals Inc.</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal 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: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal 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: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="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 32,524,161 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>On July 29, 2015 the Company’s board of directors
authorized a 1:10 reverse split.  All shares herein are reflected post-split in accordance with SAB Topic 4C.</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On 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="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="background-color: white">On
May 7, 2015 our Board of Directors approved and, on June 10, 2015, the holders of a majority of our voting capital stock approved
a change of name of the Company to Fonon Corporation, a change of the Company's domicile from Wyoming to Delaware and adoption
of a new Certificate of Incorporation, effective August 20, 2015.</font></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">  </p>
<p style="font: 10pt/normal 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 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/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="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.  Effective July 29, 2015 the Company executed 1:10 reverse stock split, and intends to issue 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 have been reflected as discontinued operations.</font></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><u>Presentation as a Going Concern</u></b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">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 $362,310 and $487,812
for the six months ended June 30, 2015 and 2014, respectively.  The Company also has an accumulated deficit of $88,659,681
and a working capital surplus of $1,179,520 at June 30, 2015 due to the acquisition of the inventory.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">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.</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">  </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">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 500,000 post reverse
split adjusted shares of their common stock to CCE and itself received 1,099,283 (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 500,00,000 shares. The Company issued 7,907,882 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 1,351,075 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.  On July 29, 2015 the Company’s board of directors authorized a
1:10 reverse split.  All shares herein are reflected post-split in accordance with SAB Topic 4c.</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Simultaneous with the first 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.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Prior to deconsolidation, the Company
had classified all of the expenses associated with extraction as period expenses.  MAB-Z never made a shipment of barite
and 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 have been significant and cost prohibitive. No one in the MAB-Z received a regular salary and was 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 was substantial
and MABZ  was  minimizing  its  cash  expenditures  prior  to  generating positive operational
cash flow it is the intent of management to minimize cash outflow to only critical expenditures.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Additionally, the grade of mineral that
MAB-Z currently had stockpiled was not the desired grade of Steinbock, Mab-Z's master distributer. Although management believed
that the mineral in the form to be a saleable grade of the commodity MAB-Z neither had the current capacity to further refine the
mineral to an acceptable grade nor the ability to find another buyer for it.</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">  </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">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 was
challenged in litigation against MAB-Z. Despite MAB-Z holding legal certificates of ownership of the Dodge Mines claims the law
of 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 since the outcome of these appeals were not known, and with the Dodge
Mine claims being in question, it delayed exploration and future revenue streams from the barite that these claims were said to
contain. When the Company entered into the mining industry in Zimbabwe with what management believed was clear title to these Dodge
Mine claims, the economic conditions in Zimbabwe were better than in late 2014, and the relationship between the Company and Tapiwa
Gurupira was on much better terms. Until December 28, 2014, Tapiwa Gurupira was a director of the Company.</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In 2012, despite not having voting control
of MAB-C, the entire five member board of directors of MAB-C was 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 impacted 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.</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On December 28, 2014, the Company deconsolidated
MAB-C, a VIE, on the basis 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: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="background-color: white">On
March 30, 2015, the Company, entered into the SPA whereby transferred assets of Fonon Technologies valued at $10,401,030 allowing
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: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><u>Principles of Consolidation</u></b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal 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: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal 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 2.5 common shares (post reverse
split adjusted) of Mabwe Minerals Inc. for every share of Series B Preferred Convertible Stock both subject to a one 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: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal 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 owned 100% of MAB-Z and 25% of Kinsey, which as of October 1, 2014, was returned
to Kinsey, as fully described in Note 3. The Company owned a 49% stake in MAB-C the newly formed corporation; the remaining 51%
ownership in MAB-C was 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: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal 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: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal 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: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="background-color: white">Pursuant
to the March 30, 2015 SPA, (i) the Company sold its assets and liabilities to a company controlled by Al Pietrangelo, (ii) the
Company acquired assets to engage in the business of 3D Metal Laser Printing and (iii) 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 between that new company controlled by Al Pietrangelo and the Company. The transferred assets
of Fonon Technologies valued at $10,401,030 allows the Company to focus operational efforts in the laser material processing business.</font></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td colspan="4" style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Warrant activity for the six months ended June 30, 2015</font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(post reverse split adjusted)</font></td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 89%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Warrants issued and outstanding as of December 31, 2014</font></td>
<td style="width: 1%; text-align: right; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 8%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">160,000</font></td>
<td style="width: 1%; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Warrants Issued</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">12,500,000</font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Warrant Expired</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(160,000</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Warrants issued and outstanding as of June 30, 2015</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 107%"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">12,500,000</font></td>
<td style="line-height: 107%"> </td></tr>
</table>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Fonon Technologies, Inc. asset purchase for MBMI stock</b></font></td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 89%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Finish goods and work in process</font></td>
<td style="width: 1%; text-align: right; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 8%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,220,642</font></td>
<td style="width: 1%; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Fixed assets - demo and trade show equipment</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,439,273</font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Fixed assets - office furniture</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">92,789</font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Software - infrastructure, operational and web development</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">364,042</font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Software for machines for resale</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,176,284</font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Other intangibles - customer database</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">676,000</font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Other intangibles – trademarks</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">35,000</font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Other intangibles - design and documentation</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">5,397,000</font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Total non-cash asset purchase</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">10,401,030</font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Stock issued for purchase of assets from Fonon Technologies, Inc. (at par)</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">325,242</font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Value of warrants issued to Al Pietrangeo</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">374,957</font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Additional paid in capital</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">9,700,831</font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Total non-cash consideration</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">10,401,030</font></td>
<td style="line-height: 107%"> </td></tr>
</table>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Following is a reconciliation of the
aggregate reclamation liability (ARO) associated with MAB-Z's reclamation plan for our mining projects:</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>December 31,</b></font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>December 31,</b></font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>2014</b></font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>2013</b></font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 78%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Long-term reclamation liability — beginning of period</font></td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 8%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 1%; text-align: right; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 8%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="width: 1%; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Additional obligations incurred</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">83,350</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Accretion of reclamation liability</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Long-term reclamation liability — end of period</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">83,350</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Following is a reconciliation of the
aggregate retirement obligation asset associated with our reclamation plan for our mining projects:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>December 31,</b></font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>December 31,</b></font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>2014</b></font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>2013</b></font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 78%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Retirement obligation asset — beginning of period</font></td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 8%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 1%; text-align: right; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 8%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="width: 1%; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Additional obligations incurred</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">83,350</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Amortization of retirement obligation asset</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Retirement obligation asset — end of period</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">83,350</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">The Company’s total deferred tax assets and deferred
tax liabilities were as follows at June 30, 2015 and December 31, 2014:</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">June 30,</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">2015</p></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">December 31, 2014</font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Deferred tax assets:</font></td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 78%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Non-benefited  tax losses and credits</font></td>
<td style="width: 1%; text-align: right; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 8%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">103,347</font></td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 1%; text-align: right; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 8%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">28,024,755</font></td>
<td style="width: 1%; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Total deferred tax assets</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">103,347</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">28,024,755</font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Deferred tax liabilities</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Net book value of assets</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Total deferred tax liabilities</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Total net deferred tax assets</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">103,347</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">28,024,755</font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Valuation allowance</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(103,347</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(28,024,755</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Net deferred tax assets</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="line-height: 107%"> </td></tr>
</table>
12500000
160000
12500000
-160000
<p style="margin: 0pt"></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b>9.       <u>Warrants</u></b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">Warrants to be granted to former CEO, Al Pietrangelo, under
terms of the asset purchase and change of control are summarized as follows:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><b> </b></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 5%; font: 10pt/107% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="width: 95%; font: 10pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">12,500,000 warrants issued to Al Pietrangelo in the acquisition agreement with Fonon Technologies as the warrants are issued upon the effective date of the reverse stock split, July 29, 2015. Those warrants have an exercise price of $0.001 and have an exercise period of two years.</font></td></tr>
</table>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td colspan="4" style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Warrant activity for the six months ended June 30, 2015</font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(post reverse split adjusted)</font></td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="2" style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 89%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Warrants issued and outstanding as of December 31, 2014</font></td>
<td style="width: 1%; text-align: right; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 8%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">160,000</font></td>
<td style="width: 1%; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Warrants Issued</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">12,500,000</font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Warrant Expired</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(160,000</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Warrants issued and outstanding as of June 30, 2015</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">12,500,000</font></td>
<td style="line-height: 107%"> </td></tr>
</table>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="margin: 0pt"></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b>5.     <u>Equity Investment -
Kinsey</u></b></p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">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 500,000 post reverse split adjusted 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 500,000 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 $1.00 per share post reverse split adjusted.</p>
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">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.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">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 500,000 post reverse split adjusted  shares of the Company. As a result of the transaction, Kinsey
is no longer an investment on the books of MAB-C.</p>
-362310
-293160