----

| Index                                                                   |                                                                                           |
|-------------------------------------------------------------------------|------------------------------------------------------------------------------------------------|
|                                                                    |                                                                                           |
| Independent Auditor’s Report of Registered Public Accounting Firm | 2-3                                                                                            |
|                                                                    |                                                                                           |
| Consolidated Statements of Financial Position                           | 4                                                                                              |
|                                                                    |                                                                                           |
| Consolidated Statements of Operations and Comprehensive Loss            | 5                                                                                              |
|  Consolidated Statements of Changes in Shareholders’ Equity  |  6                                                                                        |
|                                                                    |                                                                                           |
| Consolidated Statements of Cash Flows                                   | 7                                                                                              |
|                                                                    |                                                                                           |
| Notes to Consolidated Financial Statements                              |            8-25     |

----

----

----

| As at March 31,                                                  |   | Note   |   |   | 2014   |      |       | 2013* (Note 2) |   |
|------------------------------------------------------------------|--------|--------|--------|--------|--------|-----------|------------|---------------------|--------|
| Assets                                                           |   |   |   |   |   |      |       |                |   |
| Current                                                          |   |   |   |   |   |      |       |                |   |
|     Cash                                     |   |   | 5      |   |   | $         | 2,032,058  |                |   | $ | 190,960 |   |
|     Advances and other receivable            |   |   |   |   |   |      | 227,233    |                |   |   | 295,441 |   |
|                                                             |   |   |   |   |   | $         | 2,259,291  |                |   | $ | 486,401 |   |
| Long-term assets                                                 |   |   |   |   |   |      |       |                |   |   |   |   |
|    Goodwill and Intangible assets                 |   | 2(ii)  |   |   |   | 3,000,000 |       |                |   |   |   |
|    Office equipment and furniture                 |   |   |   |   |   |      | 4,122      |                |   |   | - |   |
| Total assets                                                     |   |   |   |   |   | $         | 5,263,413  |                |   | $ | 486,401 |   |
| Liabilities and Shareholders' equity                             |   |   |   |   |   |      |       |                |   |   |   |   |
| Current liabilities                                              |   |   |   |   |   |      |       |                |   |   |   |   |
|     Accounts payable and accrued liabilities |   |   | 7      | (d)    |   |      | 191,972    |                |   |   | 12,392 |   |
|                                                             |   |   |   |   |   | $         | 191,972    |                |   | $ | 12,392 |   |
| Shareholders' Equity                                             |   |   |   |   |   |      |       |                |   |   |   |   |
| Capital stock                                                    |   |   | 6      |   |   |      | 7,256,715  |                |   |   | 503,495 |   |
| Stock option reserve                                             |   |   | 7      | (a)    |   |      | 362,440    |                |   |   |   |   |
| Warrants                                                         |   |   | 8      | (i)    |   |      | 1,108,402  |                |   |   |   |   |
| Deficit                                                          |   |   |   |   |   |      | (6,334,433 | )                   |   |   | (29,486 | ) |
| Total Shareholders' equity                                       |   |   |   |   |   | $         | 2,393,124  |                |   | $ | 474,009 |   |
| Non-controlling interests                                        |   | 2(ii)  |   |   | $      | 2,678,317 |       |                |   |   |   |
| Total equity                                                     |   |   |   |   |   |      | 5,071,441  |                |   |   | 474,009 |   |
| Total  liabilities and Shareholders' equity            |   |   |   |   |   | $         | 5,263,413  |                |   | $ | 486,401 |   |
| Commitments and Contingent Liabilities (Note 10)                 |   |   |   |   |   |      |       |                |   |   |   |   |
| Related Party Transactions (Note 12)                             |   |   |   |   |   |      |       |                |   |   |   |   |

----

|                                                         | Note                     | Year ended March 31, 2014                                                                             | May 23, 2012 to March 31, 2013 * (Note 2) |
|--------------------------------------------------------------|--------------------------|-------------------------------------------------------------------------------------------------------|-------------------------------------------|
| Expenses                                                     |                     |                                                                                                  |                                      |
|     Acquisition related costs                 | 2(i) & 6             |         3,839,398                                             |                                      |
|     Consulting fees                           | 10(a) & (b) and 11   |         1,162,362                                             |                                      |
|     Research and development                  | 7(d) and 10((c) to( h) ) |         1,135,779                                             |  26,976                              |
|     Professional fees                    |                     |            335,692                             |                                      |
|     Office and general                   |                     |              39,501                  |                                      |
|     Payroll                              |                     |              39,348                  |                                      |
|     Shareholders' information            |                     |              29,835                  |                                      |
|     Rent                                 |                     |              17,009                  |                                      |
|     Travel, meals and promotions         | 12 (i)                   |              14,357                  |  2,470                               |
|     Transfer agents fees                 |                     |              11,329                  |                                      |
|     Bank charges and interest            |                     |                 3,351 |  40                                  |
|     Communication                        |                     |                 3,070 |                                      |
|     Amortization                         |                     |                 1,164 |                                      |
|     Exchange gain                        |                     |               (5,565)           |                                      |
|                                                         |                     |  $6,626,630                                                                                      |  $29,486                             |
| Net loss and comprehensive loss for year                     |                     |  $(6,626,630)                                                                                    |  $(29,486)                           |
| Net loss  and comprehensive loss attributable to : |                     |                                                                                                  |                                      |
|    Owners of the Company                      |                     |  (6,304,947)                                                                                     |  (29,486)                            |
|     Non-controlling interest             |                     |  (321,683)                                                                                       |  -                                   |
|                                                         |                     |  $(6,626,630)                                                                                    |  $(29,486)                           |
| Basic and diluted loss per share                             |                     |                                                                                                  |                                      |
|     Net Loss per share                   | 9                        |  $(0.04)                                                                                         |  $(0.00)                             |
|                                                         |                     |                                                                                                  |                                      |

----

|                                                                           | Number of Shares | Capital Stock                                                             | Stock Option Reserve                         | Warrants                                     | Accumulated Deficit                                                        | Non-controlling interest                           | Total Equity                                                   |
|--------------------------------------------------------------------------------|------------------|---------------------------------------------------------------------------|----------------------------------------------|----------------------------------------------|----------------------------------------------------------------------------|----------------------------------------------------|----------------------------------------------------------------|
| Balance, May 23, 2012                                                          | 81,759,076       | $  503,495                                                      |                                         |                                         |                                                                       |                                               |      503,495                          |
| Net loss for period                                                            |             |                                                                      |                                         |                                         |            (29,486) |                                               |          (29,486) |
| Balance, March 31, 2013                                                        | 81,759,076       |  $  503,495                                                |  $      - |  $     -       |  $    (29,486)                                    |  $       - |  $  474,009                                     |
| Balance, April 1, 2013                                                         | 81,759,076       |  $  503,495                                                |  $     -       |  $      - |  $ (29,486)                                                           |  $      -       |  $  474,009                                     |
| Issued on reverse acquisition (Note 2)                                         | 81,759,076       |         1,761,413                 |                                         |     1,108,402            |                                                                       |                                               |      2,869,815                        |
| Issued for financial advisory services relating to the acquisition transaction | 9,811,091        |         3,826,325                 |                                         |                                         |                                                                       |                                               |      3,826,325                        |
| Exercise of warrants                                                           | 1,450,000        |            175,000 |                                         |                                         |                                                                       |                                               |         175,000        |
| Exercise of options                                                            | 1,996,547        |            299,482 |                                         |                                         |                                                                       |                                               |         299,482        |
| Value of shares issued as compensation                                         | 4,000,000        |            691,000 |                                         |                                         |                                                                       |                                               |         691,000        |
| Value of options issued                                                        |             |                                                                      |     362,440              |                                         |                                                                       |                                               |         362,440        |
| Acquisition of Biohaven (Note 2)                                               |             |                                                                      |                                         |                                         |                                                                       |     3,000,000                  |      3,000,000                        |
| Net loss for year                                                              |             |                                                                      |                                         |                                         |       (6,304,947)                            |      (321,683)            |     (6,626,630)                            |
| Balance, March 31, 2014                                                        | 180,775,790      |  $ 7,256,715                                                         |  $ 362,440                              |  $ 1,108,402                            |  $ (6,334,433)                                                        |  $ 2,678,317                                  |  $ 5,071,441                                              |

----

|                                                                     |   | Year ended March 31, 2014                                                                                         | May 23, 2012 to March 31, 2013                                                                                                                                                        |
|--------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Cash flows from operating activities                                     |   |                                                                                                              |                                                                                                                                                                                  |
|    Net loss for period                                    |   |  $ (6,626,630)                                                                                               |               $  (29,486)                                                                             |
| Adjustments for non-cash items:                                          |   |                                                                                                              |                                                                                                                                                                                  |
|    Amortization of office equipment and furniture         |   |                   1,164 |                            -                   |
|    Value of shares and options expensed as consulting fee |   |             1,053,440                                 |                                                                                                                                                                                  |
|   Acquisition related costs                                    |   |             3,826,325                                 |                            -                   |
| Net change in working capital components                                 |   |                                                                                                              |                                                                                                                                                                                  |
|    Other receivables                                      |   |                 (73,270)          |                                                                                                                                                                                  |
|    Accounts payable and accrued liabilities               |   |               (116,447)                     |                   12,392                                                                    |
|                                                                     |   |  $ (1,935,418)                                                                                               |  $         (17,094)                                                                                                                 |
| Cash flows from financing activities                                     |   |                                                                                                              |                                                                                                                                                                                  |
|    Cash received on reverse acquisition (Note 2)          |   | 3,006,593                                                                                                         |                            -                   |
|    Options and warrants  excercised             |   |                474,482                 |                                                                                                                                                                                  |
|    Capital contribution                                   |   |                295,441                 |                 208,054                                                                               |
|                                                                     |   |  $         3,776,516                                            |  $         208,054                                                                                                                  |
| Increase in cash during year                                             |   |             1,841,098                                 |            190,960                                                                                                             |
| Cash at beginning of year                                                |   | 190,960                                                                                                           |                            -                   |
| Cash at end of year                                                      |   |  $         2,032,058                                            |  $         190,960                                                                                                                  |
| Supplemental disclosures                                                 |   |                                                                                                              |                                                                                                                                                                                  |
| Non-cash investing activities                                            |   |                                                                                                              |                                                                                                                                                                                  |
| Value of shares and warrants issued on acquisition                       |   |            (2,869,815)                                     |                            -                   |
|                                                                     |   |                                                                                                              |                                                                                                                                                                                  |
|                                                                     |   |            (2,869,815)                                     |                               - |

----

| 2. | ACQUISITIONS |
|----|--------------|

|   | (i) | Reverse Acquisition Transaction |
|--------|-----|---------------------------------|

|   | On June 4, 2013, the Company completed an acquisition with PPL pursuant to which a wholly owned subsidiary of the Company, Portage Acquisition Inc. and PPL amalgamated, resulting in the Company owning all of the issued and outstanding shares of the amalgamated entity. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Pursuant to a Share Exchange Agreement, Bontan issued 81,759,076 common shares and 71,456,420 warrants to PPL shareholders in exchange for PPL shareholders transferring all their shares in favour of Portage Acquisition Inc. Warrants can be exercised within two years at an exercise price of US$0.29 to acquire an equal number of common shares of the Company. In addition, Bontan also issued 9,811,091 shares to a company as compensation for financial advisory services rendered in connection with the transaction. The fair value of these shares of $ 3,826,325 was expensed. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Although the transaction resulted in PPL becoming a wholly owned subsidiary of the Company, the transaction constitutes a reverse acquisition in as much as the shareholders of PPL own a substantial majority of the outstanding common shares of the Company and three out of four members of the Board of Directors of the Company are PPL shareholders. As a result, PPL controls the Company. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a. | The assets and liabilities of PPL at their pre-acquisition carrying amounts as at  March 31, 2014 and expenses for the year ended on that date |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | The assets and liabilities of Bontan as at March 31, 2014 and expenses from June 4, 2013 to March 31, 2014. |
|--------|----|-------------------------------------------------------------------------------------------------------------|

|   | c. | Share capital representing the total number of shares issued by the Company. |
|--------|----|------------------------------------------------------------------------------|

|   | d. | Value of the share capital was computed by adding to the value of the share capital of PPL on the date of acquisition, June 4, 2013, the fair value of Bontan as allocated to shares issued on the date of acquisition, and adjusted to any exercise or issuance of shares, warrants and options during the year ended March 31, 2014. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | e. | Comparative figures are those of PPL, before the transaction. |
|--------|----|---------------------------------------------------------------|

| Cash                           |   | $      | 3,006,593 |   |
|--------------------------------|--------|--------|-----------|--------|
| Office equipment and furniture |   |   | 5,286     |   |
| Other assets                   |   |   | 153,963   |   |
| Liabilities                    |   |   | (296,027  | )      |
|                           |   |   |      |   |
| Fair value of net assets       |   |   | 2,869,815 |   |

| The fair value of the consideration was allocated: |   |   |      |
|----------------------------------------------------|--------|--------|-----------|
|                                               |   |   |      |
| To shares issued                                   |   | $      | 1,761,413 |   |
| To warrants issued                                 |   | $      | 1,108,402 |   |

----

|          Goodwill and intangible assets                        | $3,000,000 |
|-------------------------------------------------------------------------------------------------------------|------------|
|          Other net assets                                           | $3,500,000 |
|  Net assets acquired                                                                                   | $6,500,000 |
|                                                                                                        |       |
|          Cash consideration paid for company’s interest (54%) | $3,500,000 |
|          Non-controlling interest                                   | $3,000,000 |
|                                                                                                        | $6,500,000 |

| (a) | Statement of Compliance and Basis of presentation |
|-----|---------------------------------------------------|

|   | a. | Portage Services Ltd. (previously 1843343 Ontario Inc.), a wholly owned subsidiary incorporated in Ontario on January 31, 2011. 1843343 Ontario Inc. changed its name to Portage Services Ltd. effective July 11, 2013. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | Portage Pharmaceuticals Ltd. (previously Portage Acquisition Inc.), a wholly owned subsidiary incorporated on April 5, 2013 under the laws of the BVI, as a BVI business company. On July 23, 2013, Portage Pharma Limited merged with Portage Acquisition Inc. and the merged entity was known as Portage Acquisition Inc., which changed its name on August 27, 2013. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c. | Biohaven Pharmaceutical Holding Company Limited (“Biohaven”). ( Note 2(ii)) |
|--------|----|-----------------------------------------------------------------------------------------|

----

| 4. | SIGNIFICANT ACCOUNTING POLICIES |
|----|---------------------------------|

|         Foreign currency translation |   |
|-------------------------------------------------------------------------|--------|

|   | Share-based payments |
|--------|----------------------|

|   | The Company accounts for share-based payments granted to directors, officers, employees and consultants using the Black-Scholes option-pricing model to determine the fair value of the plan at the grant date. Share-based payments to employees, officers and directors are recorded and reflected as an expense over the vesting period with a corresponding amount reflected in stock option reserve. On exercise, the associated amounts previously recorded in the stock option reserve are transferred to the common share capital. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The quoted market price of the Company’s shares on the date of issuance under any share- based plan is considered as fair value of the shares issued. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Share-based payments to non-employees are recognized and measured at the date the services are received based on the fair value of the services received unless if the fair value of the services cannot be reliably measured in which case it is based on the fair value of equity instruments issued using the Black-Scholes option pricing model. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (i) | Research and development |
|--------|-----|--------------------------|

|   | (ii) | Subsequent expenditure |
|--------|------|------------------------|

|   | (iii) | Clinical trial expenses: |
|--------|-------|--------------------------|

----

|   | A contingent liability is a possible obligation that arises from past events and of which the existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not within the control of the Corporation; or a present obligation that arises from past events (and therefore exists), but is not recognized because it is not probable that a transfer or use of assets, provision of services or any other transfer of economic benefits will be required to settle the obligation; or the amount of the obligation cannot be estimated reliably. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Determination of fair value |
|--------|-----------------------------|

|   | A deferred tax asset is recognized to the extent that it is probable that future taxable profits will be available against which the temporary difference can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | No deferred tax asset has been recognized for losses incurred as the entities in which the losses arose are in the British Virgin Islands. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (b) | Issued |
|--------|-----|--------|

|                                                                                      | Common                                                    |                                                          |
|-------------------------------------------------------------------------------------------|-----------------------------------------------------------|---------------------------------------------------------------|
|                                                                                      | Shares                                                    | Amount                                                        |
| Balance at May 23, 2012                                                                   |      81,759,076                  |  $      503,495            |
| Balance at  March 31, 2013                                                      |      81,759,076                  |  $      503,495            |
| Issued on acquisition of PPL  (Note 2)                                          |      81,759,076                  |       1,761,413                 |
| Issued for financial advisory services in connection with the acquisition of PPL (Note 2) |         9,811,091 |       3,826,325                 |
| Exercise of warrants                                                                      |         1,450,000 |          175,000 |
| Exercise of options                                                                       |         1,996,547 |          299,482 |
| Shares issued as compensation ( c)                                                        |         4,000,000 |          691,000 |
| Balance at March 31, 2014                                                                 |    180,775,790                             |  $   7,256,715                            |

|   | (c) | On December 12, 2013, the Chairman and CEO were issued one and a half million shares each, as restricted shares and on December 16, 2013, the CFO was issued one million shares under the 2011 Consultants Compensation Plan in lieu of cash fee for services provided and to be provided. The shares were valued at $691,000 based on the market price of the Company’s common shares prevailing on the dates of their issuance. Since the shares were issued without any conditions of forfeiture or cancellation, entire value was expensed during the year ended March 31, 2014 as consulting fee (note 11). |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  (e) | As at March 31, 2014, the Company had the following active Consultant Stock Compensation Plan: |
|--------|-----------|------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|

|      | Date of registration* | Registered shares under Plan | Issued to March 31, 2012    | As at April 1, 2013 | ( see (c ) above)             | Cancelled (i)                                                                                                 | Balance at March 31, 2014 |
|-----------|-----------------------|------------------------------|-----------------------------|---------------------|-------------------------------|---------------------------------------------------------------------------------------------------------------|---------------------------|
| 2011 Plan | 11-Apr-11             | 6,000,000                    |    (938,333) | 5,061,667           |    (1,000,000) |                   - | 4,061,667                 |

|   | * | Registered with the Securities and Exchange Commission of the United States of America (SEC) as required under the Securities Act of 1933. |
|--------|---|--------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | As required under listing requirements by Canadian Securities Exchange, the Company signed, on October 25, 2013, an escrow agreement with TMX Equity Transfer Services to have 89,941,793 of its common shares and 69,524,447 of its warrants issued to four insiders under an escrow arrangement. The escrowed shares and warrants will be released in agreed tranches over the period of three years. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (a) | Stock option reserve: |
|-----|-----------------------|

|   | On December 17, 2013, the Company issued total of 4,450,000 options to 10 consultants including 2.9 million options to the four directors under 2013 Option Plan. These options are valid for five years and are convertible into equal number of common shares of the Company at an exercise price of $0.20 per common share. The Options were registered with the US Securities and Exchange Commission on December 19, 2013 and will vest as follows: |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The fair value of these options has been estimated using a Black-Scholes option pricingmodel with the following assumptions: |
|--------|------------------------------------------------------------------------------------------------------------------------------|

| Risk free interest rate | 1%        |
|-------------------------|-----------|
| Expected dividend       | Nil       |
| Expected volatility     | 105.27%   |
| Expected life           | 1826 days |
| Market price            | US$0.18   |

|   | The fair value of the options as per the Black-Scholes option pricing model amounted to $604,055, of which options valued at $362,440 vested as at March 31, 2014 were accounted for as option reserve and expensed as consulting fee (note 11). The value of options not vested as at March 31, 2014 will be accounted upon vesting of the related options as per the accounting policy. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | The following is a summary of all active Stock Option Plans as at March 31, 2014: |
|--------|-----|-----------------------------------------------------------------------------------|

| Stock Option Plan                           | 1999                                                                                              | 2003                                                                                                    | The Robinson                                                                                                                                | 2005                                                                                                                                  |                                                                                              | Total                                               |
|---------------------------------------------|---------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------|-----------------------------------------------------|
| Plan                                        | 1999 Stock Option Plan                                                                            | 2003 Stock Option Plan                                                                                  | Robinson Plan                                                                                                                               | 2005 Stock Option Plan                                                                                                                | 2013 Option Plan                                                                                  |                                                |
| Date of Registration                        | April 30, 2003                                                                                    | July 22, 2004                                                                                           | Dec. 5, 2005                                                                                                                                | Dec. 5, 2005                                                                                                                          | Dec 19, 2013                                                                                      | Total                                               |
|                                        | number of options                                                                                 |
| Registered *                                |    3,000,000                                                                       |      2,500,000                                                                 |           1,100,000                                                                       |          1,000,000                                                                       |     4,450,000                                                                 |      12,050,000            |
| Issued                                      |    3,000,000                                                                       |      2,500,000                                                                 |           1,100,000                                                                       |          1,000,000                                                                       |     4,450,000                                                                 |      12,050,000            |
| Outstanding, April 1, 2013                  |    1,730,000                                                                       |      1,945,000                                                                 |           1,100,000                                                                       |             610,000                                                       |                 - |        5,385,000 |
| Issued                                      |                                                                                              |                                                                                                    |                                                                                                                                        |                                                                                                                                  |     4,450,000                                                                 |        4,450,000 |
| Exercised                                   |     (482,100)                                                                 |    (1,514,447)                                                                           |                                                                                                                                        |                                                                                                                                  |                                                                                              |       (1,996,547)     |
| Expired                                     |  (1,247,900)                                                                                 |       (430,553)                                                           |          (1,100,000)                                                                           |              (50,000)                                                |                                                                                              |       (2,828,453)     |
| Outstanding, March 31, 2014                 |                 - |                  - |                        - |             560,000                                                       |     4,450,000                                                                 |        5,010,000 |
|                                        |                                                                                              |                                                                                                    |                                                                                                                                        |                                                                                                                                  |                                                                                              |                                                |
| Options fully vested - March 31, 2014       |                                                                                              |                                                                                                    |                                                                                                                                        |             560,000                                                       |     1,262,490                                                                 |        1,822,490 |
| Options not yet vested as at March 31, 2014 |                                                                                              |                                                                                                    |                                                                                                                                        |                       - |     3,187,510                                                                 |        3,187,510 |
|                                        |                                                                                              |                                                                                                    |                                                                                                                                        |             560,000                                                       |     4,450,000                                                                 |        5,010,000 |

|   | *   Registered with the Securities and Exchange Commission of the United States of America (SEC) as required under the Securities Act of 1933. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | The weighted average exercise price of the outstanding stock options was US$0.22 as at March 31, 2014 and weighted average remaining contractual life was approximately 4.33 years. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | The Company’s wholly owned subsidiary, PPL granted 33,542 options to its two consultants to acquire equal number of shares in PPL at an exercise price of $1.10 per PPL share. The options are to be vested over two years by March 31, 2016 and are valid for five years from the date of grant. None of the options have so far been exercised. The options were valued at their intrinsic value of $173,412, based on the value offered to PPL for its shares under the reverse take-over transaction explained in Note 2(i). This is treated as cash-settled share-based payment transaction as per IFRS 2. $ 57,226 of the total representing the value of options vested as at March 31, 2014 was therefore expensed as consulting fee and included as part of  research and developmentexpenses  and related liability included in accounts payable and accrued liabilities. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8. | WARRANTS |
|----|----------|

|   | (i) | The movements during the year ended March 31, 2014 were as follows: |
|--------|-----|---------------------------------------------------------------------|

|                                      |  # of warrants |  Weighted average exercise price | Fair value             |
|-------------------------------------------|---------------------|---------------------------------------|------------------------|
| Issued and outstanding, April 1, 2012     | 68,071,420          | $   0.30               | -                      |
| Cancelled                                 | (2,000,000)         | $  0.35                     | -                      |
| Issued and outstanding, March 31, 2013    | 66,071,420          | $    0.29         |                   |
| Issued on acquisition ( Note 2 and 8(ii)) | 71,456,420          | $  0.29                     | $  1,108,402 |
| Exercised                                 | (1,450,000)         | $  (0.12)                   |                   |
| Expired                                   | (21,796,420)        | $   (0.19)             |                   |
| Issued and outstanding, March 31, 2014    | 114,281,420         | $   0.31               | $ 1,108,402            |

|   | (ii) | The Company issued 71.4 million warrants to nine shareholders of PPL as per the terms of the Share Exchange Agreement as explained in Note 2(i). These warrants are convertible into equal number of common shares at an exercise price of $0.29 per warrant and expire within two years of their issuance. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The fair value of these warrants has been estimated using a Black-Scholes option pricingmodel with the following assumptions: |
|--------|-------------------------------------------------------------------------------------------------------------------------------|

| Risk free interest rate | 1%       |
|-------------------------|----------|
| Expected dividend       | Nil      |
| Expected volatility     | 137.71%  |
| Expected life           | 730 days |
| Market price            | US$0.39  |

|   | Using the relative fair value method, an amount of $1,108,402 for warrants issued hasbeen accounted for as the value of warrants. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | Details of weighted average remaining life of the warrants granted and outstanding are as follows: |
|--------|-------|----------------------------------------------------------------------------------------------------|

| March 31,             | 2014                                   | 2013                                                |
|-----------------------|----------------------------------------|-----------------------------------------------------|
|                  | Warrants outstanding & exercisable | Warrants outstanding & exercisable              |
| Exercise price in US$ | Number                                 | Weighted average remaining contractual life (years) | Number | Weighted average remaining contractual life (years) |
| 0.10                  | -                                      | -                                                   | 10,400,000 | 1.00 |
| 0.25                  | -                                      | -                                                   | 12,846,420 | 1.00 |
| 0.29                  | 71,456,420                             | 1.18                                                | - | - |
| 0.35                  | 42,825,000                             | 0.92                                                | 42,825,000 | 1.90 |
|                  | 114,281,420                            | 1.08                                                | 66,071,420 | 1.59 |

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|   | (a) | The Company entered into a consulting contract with Mr. Kam Shah, the Chief Financial Officer on April 1, 2005 for a five-year term. This term was extended by another five years to March 31, 2015 by the audit committee on April 1, 2010. Mr Shah’s monthly fee is $15,000 plus taxes. Further, the contract provides for a lump sum compensation of US$250,000 for early termination of the contract without cause. The contract also provides for entitlement to stock compensation and stock options under appropriate plans as may be decided by the board of directors from time to time. For the year ending December 31, 2014, Mr. Shah accepted one million common shares in lieu of his compensation for that year (Note 6(c)). |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | PPL has signed a contract with an independent contract research and manufacturing organization to manufacture certain proprietary peptides for a total costs currently estimated at between $ 169,000 and $272,000 of which $ 107,711 has already been incurred and paid for as at March 31, 2014. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Under the terms of the License Agreement dated January 25, 2013, PPL is required to reimburse to the Licensor, Trojan Technologies Limited, 50% of all maintenance costs of the US Patent # 7,968,512 and to pay royalties of 3% on Net Receipts from sales of the Licensed Product and 5% on Net Receipts from third parties in respect of development or other exploitation of Licensed Intellectual Property and/or Licensed Products up to a maximum of $ 30 million. Total amount that may be payable in future under the terms of the Agreement cannot be reasonably estimated at this time. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | PPL has signed consulting contracts with its Chief Executive Officer and Chief Scientific Officer expiring in or around March 2015 and carrying a total monthly commitment of $21,250.Early termination without cause would require a lump sum compensation of $ 75,000 to be paid to the two consultants. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | Under a Securities Purchase Agreement signed on January 6, 2014 with Biohaven, the Company agreed to pay $ 3.5 million for 54% equity in Biohaven of which $ 1,750,000 was paid on January 6, 2014. Of the balance, $ 750,000 will be payable on August 1, 2014, $ 500,000 will be payable on December 3, 2014 and the balance $ 500,000 will be payable on February 4, 2014. Failure to pay will result in the Company forfeiting its equity in Biohaven proportionate to the unpaid amount. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | Biohaven has signed a Master Service Agreement on January 31, 2014, as subsequently amended in April 2014, with Biohaven Pharmaceuticals Inc, a private Delaware incorporated research and development company (“BPI”). BPI is owned by non-controlling shareholders of Biohaven and is engaged by Biohaven to conduct, on behalf of Biohaven, research and development services relating to identification and development of clinical stage neuroscience compounds targeting the glutamatergic system. The agreement expires on December 31, 2018 and will automatically renew on a year to year basis. Either party can terminate the agreement upon ninety days prior notice. Agreed fee for the period up to June 30, 2015 is $ 3 million payable in quarterly instalment commencing from March 1,2014. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | On March 3, 2014, Biohaven signed a contract with an independent contract research and manufacturing organization to investigate technical feasibility of developing a new formulation for Bio haven using nanosuspension and emulsion formulation approaches. The contract is approximately for fifty five weeks involving several agreed milestones for a total price of approximately $ 345,000. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | Under the terms of the License Agreement dated September 16, 2013 signed with Yale University, Biohaven is required to pay to the Licensor a milestone royalty of $ 2 million within six months of receiving approval of an NDA ( New Drug Application) and pay earned royalty at 3% on worldwide annual net sales of the licensed products, subject to minimum royalty payment of $ 300,000 in the year one, $ 600,000 in year two, $ 750,000 in year three and $ 1 million from year four onwards subject to reduction ranging from 33% to 95% depending on sales of generic exceeding an agreed market share on a country by country basis and further reduction by 50% is licensee is required to pay third party royalties. Total amount that may be payable in future under the terms of the Agreement cannot be reasonablyestimated at this time. Licensor also has right to purchase in cash up to 10% of any securities offered in future financing. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11. | CONSULTING FEE |
|-----|----------------|

|                             | Notes  | Year ended March 31, 2014                                                        | May 23, 2012to March 31, 2013                                        |
|----------------------------------|--------|----------------------------------------------------------------------------------|----------------------------------------------------------------------|
| Cash fee                         |   | $            108,921 | -                                                                    |
| Shares issued to key management  | 6 ( c) | 691,000                                                                          | -                                                                    |
| Options issued to key management | 7 (a)  | 231,838                                                                          | -                                                                    |
| Options issued to others         | 7 (a)  | 130,603                                                                          | -                                                                    |
|                             |   | $        1,162,362                       | $           - |

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|   | (i) | Business expenses of $12,786 were reimbursed to directors of the Company. |
|--------|-----|---------------------------------------------------------------------------|

|   | (ii) | Consulting fees include cash fee paid to key management for services of $102,458. |
|--------|------|-----------------------------------------------------------------------------------|

|                                     | March 31, 2014 | March 31, 2013 |
|------------------------------------------|----------------|----------------|
|                                     | Carrying value | Fair value     | Carrying value | Fair value |
| Financial assets                         |           |           |   |   |
| Cash                                     | 2,032,058      | 2,032,058      | 190,960 | 190,960 |
| Advances and other receivable            | 227,233        | 227,233        | 295,441 | 295,441 |
| Financial liabilities                    |           |           |   |   |
| Accounts payable and accrued liabilities | 191,972        | 191,972        | 12,392 | 12,392 |

|   | a) | Fair value of financial instruments |
|--------|----|-------------------------------------|

|   | • | Level 1 – Values are based on unadjusted quoted prices available in active markets for identical assets or liabilities as of the reporting date. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Level 2 – Values are based on inputs, including quoted forward prices for commodities, time value and volatility factors, which can be substantially observed or corroborated in the marketplace. Prices in Level 2 are either directly or indirectly observable as of the reporting date. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Level 3 – Values are based on prices or valuation techniques that are not based on observable market data. |
|--------|---------|------------------------------------------------------------------------------------------------------------------|

|   | b) | Credit risk |
|--------|----|-------------|

|   | a. | Cash– Cash is held with a major international financial institution in Canada and a major law firm in the USA and therefore the risk of loss is minimal. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | Other receivable – The Company is not exposed to major credit risk attributable to customers. A significant portion of this amount is prepaid to BPI under a master service agreement. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c) | Liquidity risk |
|--------|----|----------------|

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