| E-WASTE SYSTEMS, INC.                                         |   |
|---------------------------------------------------------------|--------|
| Pro Forma Consolidated Balance Sheets                         |   |
|                                                          |   |   |   |   |   |   |
|                                                          |   |   |   |   |   |   |
| ASSETS                                                        |   |   |   |   |   |   |
|                                                          |   |   |   |   |   |   |
|                                                          |   | December 31, |   |   | December 31, |   |
|                                                          |   | 2011 |   |   | 2010 |   |
|                                                          |   | (Unaudited) |   |   | (Unaudited) |   |
|                                                          |   |   |   |   |   |   |
| CURRENT ASSETS                                                |   |   |   |   |   |   |
|                                                          |   |   |   |   |   |   |
| Cash                                                          |   | $ | 6,493 |   |   | $ | 621 |   |
| Inventory                                                     |   |   | 17,000 |   |   |   | - |   |
|                                                          |   |   |   |   |   |   |   |   |
| Total Current Assets                                          |   |   | 23,493 |   |   |   | 621 |   |
|                                                          |   |   |   |   |   |   |   |   |
| PROPERTY AND EQUIPMENT, net                                   |   |   | 9,865 |   |   |   | 10,091 |   |
|                                                          |   |   |   |   |   |   |   |   |
| OTHER ASSETS                                                  |   |   |   |   |   |   |   |   |
|                                                          |   |   |   |   |   |   |   |   |
| Deposits                                                      |   |   | 4,405 |   |   |   | 2,500 |   |
| Vendor relationships                                          |   |   | - |   |   |   | - |   |
| Goodwill                                                      |   |   | - |   |   |   | - |   |
|                                                          |   |   |   |   |   |   |   |   |
| Total Other Assets                                            |   |   | 4,405 |   |   |   | 2,500 |   |
|                                                          |   |   |   |   |   |   |   |   |
| TOTAL ASSETS                                                  |   | $ | 37,763 |   |   | $ | 13,212 |   |
|                                                          |   |   |   |   |   |   |   |   |
|                                                          |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' DEFICIT                         |   |   |   |   |   |   |   |   |
|                                                          |   |   |   |   |   |   |   |   |
| CURRENT LIABILITIES                                           |   |   |   |   |   |   |   |   |
|                                                          |   |   |   |   |   |   |   |   |
| Accounts payable and accrued expenses                         |   | $ | 190,248 |   |   | $ | 25,146 |   |
| Accrued expenses-related parties                              |   |   | 530,308 |   |   |   | - |   |
| Accrued interest                                              |   |   | 13,845 |   |   |   | 1,039 |   |
| Derivative liability                                          |   |   | 7,371 |   |   |   | - |   |
| Convertible notes payable                                     |   |   | 85,500 |   |   |   | - |   |
| Note payable related party                                    |   |   | 50,240 |   |   |   | 13,877 |   |
| Contingent consideration                                      |   |   | 292,000 |   |   |   | 292,000 |   |
|                                                          |   |   |   |   |   |   |   |   |
| Total Current Liabilities                                     |   |   | 1,169,512 |   |   |   | 332,062 |   |
|                                                          |   |   |   |   |   |   |   |   |
| LONG-TERM LIABILITIES                                         |   |   |   |   |   |   |   |   |
|                                                          |   |   |   |   |   |   |   |   |
| Deferred tax                                                  |   |   | - |   |   |   | - |   |
|                                                          |   |   |   |   |   |   |   |   |
| Total Long-Term Liabilities                                   |   |   | - |   |   |   | - |   |
|                                                          |   |   |   |   |   |   |   |   |
| STOCKHOLDERS' DEFICIT                                         |   |   |   |   |   |   |   |   |
|                                                          |   |   |   |   |   |   |   |   |
| Preferred stock, 10,000,000 shares authorized                 |   |   |   |   |   |   |   |   |
|   at par value of $0.001, 400 shares issued         |   |   |   |   |   |   |   |   |
|   and outstanding                                   |   |   | 0 |   |   |   | - |   |
| Common stock, 190,000,000 shares authorized                   |   |   |   |   |   |   |   |   |
|    at par value of $0.001, 100,764,624         |   |   |   |   |   |   |   |   |
|    shares issued and outstanding, respectively |   |   | 100,765 |   |   |   | 100,200 |   |
| Additional paid-in capital                                    |   |   | 222,456 |   |   |   | (22,681 | ) |
| Accumulated deficit                                           |   |   | (1,454,971 | ) |   |   | (396,369 | ) |
|                                                          |   |   |   |   |   |   |   |   |
| Total Stockholders' Deficit                                   |   |   | (1,131,749 | ) |   |   | (318,850 | ) |
| TOTAL LIABILITIES AND                                         |   |   |   |   |   |   |   |   |
|   STOCKHOLDERS' DEFICIT                             |   | $ | 37,763 |   |   | $ | 13,212 |   |

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| E-WASTE SYSTEMS, INC.                           |   |
|-------------------------------------------------|--------|
| Pro Forma Consolidated Statements of Operations |   |
| (Unaudited)                                     |   |
|                                            |   |   |   |   |   |   |
|                                            |   |   |   |   |   |   |
|                                            |   | For the 12 Months Ended |   |
|                                            |   | December 31 |   |   |   |   |
|                                            |   | 2011 |   |   | 2010 |   |
|                                            |   |   |   |   |   |   |
| REVENUES                                        |   | $ | 575,972 |   |   | $ | 1,900 |   |
| COST OF SALES                                   |   |   | 368,784 |   |   |   | 2,519 |   |
| GROSS MARGIN                                    |   |   | 207,188 |   |   |   | (619 | ) |
|                                            |   |   |   |   |   |   |   |   |
| OPERATING EXPENSES                              |   |   |   |   |   |   |   |   |
|                                            |   |   |   |   |   |   |   |   |
| Directors' and officers' accrued compensation   |   |   | 499,417 |   |   |   | - |   |
| Consultants' fees                               |   |   | 11,540 |   |   |   | - |   |
| Professional fees                               |   |   | 524,221 |   |   |   | - |   |
| General and administrative                      |   |   | 188,808 |   |   |   | 63,223 |   |
| Depreciation                                    |   |   | 2,526 |   |   |   | 484 |   |
| Impairment expense                              |   |   | 367,973 |   |   |   | 319,044 |   |
|                                            |   |   |   |   |   |   |   |   |
| Total Operating Expenses                        |   |   | 1,594,485 |   |   |   | 382,751 |   |
|                                            |   |   |   |   |   |   |   |   |
| LOSS FROM OPERATIONS                            |   |   | (1,387,297 | ) |   |   | (383,370 | ) |
|                                            |   |   |   |   |   |   |   |   |
| OTHER EXPENSES                                  |   |   |   |   |   |   |   |   |
| Interest expense                                |   |   | (39,709 | ) |   |   | (930 | ) |
| Gain on derivative liability                    |   |   | 19,533 |   |   |   | - |   |
|                                            |   |   |   |   |   |   |   |   |
| Total Other Income/(Expenses)                   |   |   | (20,176 | ) |   |   | (930 | ) |
|                                            |   |   |   |   |   |   |   |   |
| LOSS BEFORE INCOME TAXES                        |   |   | (1,407,473 | ) |   |   | (384,300 | ) |
| PROVISION FOR INCOME TAXES                      |   |   | - |   |   |   | - |   |
|                                            |   |   |   |   |   |   |   |   |
| NET LOSS                                        |   | $ | (1,407,473 | ) |   | $ | (384,300 | ) |
|                                            |   |   |   |   |   |   |   |   |
| BASIC AND DILUTED LOSS PER SHARE                |   | $ | (0.01 | ) |   | $ | (0.05 | ) |
|                                            |   |   |   |   |   |   |   |   |
| WEIGHTED AVERAGE NUMBER                         |   |   |   |   |   |   |   |   |
|   OF SHARES OUTSTANDING               |   |   | 100,283,303 |   |   |   | 7,457,534 |   |

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