----

----

| Colorado                                                       | *                                       |
|----------------------------------------------------------------|-----------------------------------------|
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |

----

| Large accelerated filer   o     | Accelerated filer o              |
|-------------------------------------------|----------------------------------|
| Non-accelerated filer    o | Smaller reporting company þ |

|   | Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  ̈ YESþ  NO |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| As of Date    | Issued and Outstanding |
|---------------|------------------------|
| 31 March 2013 | 130,074,8571           |
| 30 June 2013  | 153,824,857            |

----

  

----

|         |                                                                                                                                                                                                                                                     |   |        Page |   |
|--------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------|--------|
| PART I-      | FINANCIAL INFORMATION                                                                                                                                                                                                                                    |   | 4                                              |   |
|         |                                                                                                                                                                                                                                                     |   |                                           |   |
| ITEM 1-      | FINANCIAL STATEMENTS                                                                                                                                                                                                                                     |   | 5                                              |   |
|         |                                                                                                                                                                                                                                                     |   |                                           |   |
|         | Condensed Consolidated Balance sheets as of March 31, 2013 and December 31, 2012  (unaudited)                                                                                                                                                  |   | 5                                              |   |
|         |                                                                                                                                                                                                                                                     |   |                                           |   |
|         | Condensed Consolidated Statement  of Operations for the three months ended March 31, 2013, and March 31, 2012 and for the period January 3, 2006 (date of commencement as a development stage company) through March 31, 2013 (unaudited) |   | 6                                              |   |
|         |                                                                                                                                                                                                                                                     |   |                                           |   |
|         | Condensed Consolidated Statement  of Cash Flows for the three months ended March 31, 2013, and December 31, 2012 and for the period January 3, 2006 (date of commencement as a development stage company) through March 31, 2013 (unaudited)   |   | 7                                              |   |
|         |                                                                                                                                                                                                                                                     |   |                                           |   |
|         | Notes to condensed consolidated financial statements (unaudited)                                                                                                                                                                                         |   | 8                                              |   |
|         |                                                                                                                                                                                                                                                     |   |                                           |   |
| ITEM 2-      | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS                                                                                                                                                              |   | 18                                             |   |
|         |                                                                                                                                                                                                                                                     |   |                                           |   |
| ITEM 3-      | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                                                                                                                                                                                               |   | 22                                             |   |
|         |                                                                                                                                                                                                                                                     |   |                                           |   |
| ITEM 4-      | CONTROLS AND PROCEDURES                                                                                                                                                                                                                                  |   | 23                                             |   |
|         |                                                                                                                                                                                                                                                     |   |                                           |   |
| PART II-     | OTHER INFORMATION                                                                                                                                                                                                                                        |   | 25                                             |   |
|         |                                                                                                                                                                                                                                                     |   |                                           |   |
| ITEM 1-      | LEGAL PROCEEDINGS                                                                                                                                                                                                                                        |   | 25                                             |   |
|         |                                                                                                                                                                                                                                                     |   |                                           |   |
| ITEM 1A-     | RISK FACTORS                                                                                                                                                                                                                                             |   | 25                                             |   |
|         |                                                                                                                                                                                                                                                     |   |                                           |   |
| ITEM 2-      | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS                                                                                                                                                                                              |   | 25                                             |   |
|         |                                                                                                                                                                                                                                                     |   |                                           |   |
| ITEM 3-      | DEFAULT UPON SENIOR SECURITIES                                                                                                                                                                                                                           |   | 25                                             |   |
|         |                                                                                                                                                                                                                                                     |   |                                           |   |
| ITEM 4-      | MINE SAFETY DISCLOSURES                                                                                                                                                                                                                                  |   | 25                                             |   |
|         |                                                                                                                                                                                                                                                     |   |                                           |   |
| ITEM 5-      | OTHER INFORMATION                                                                                                                                                                                                                                        |   | 26                                             |   |
|         |                                                                                                                                                                                                                                                     |   |                                           |   |
| ITEM 6-      | EXHIBITS                                                                                                                                                                                                                                                 |   | 26                                             |   |
|         |                                                                                                                                                                                                                                                     |   |                                           |   |
| SIGNATURES   |                                                                                                                                                                                                                                                     | 27     |                                           |
|         |                                                                                                                                                                                                                                                     |   |                                           |   |
| Exhibit 31.1 | Certification Pursuant to Section 302 of the Sarbanes Oxley Act                                                                                                                                                                                          |   |                                           |   |
|         |                                                                                                                                                                                                                                                     |   |                                           |   |
| Exhibit 32.2 | Certification Pursuant to Section 906 of the Sarbanes Oxley Act                                                                                                                                                                                          |   |                                           |   |

----

----

| ALL GRADE MINING, INC.                                                                                                                                                                                                    |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (A Development Stage Company Commencing January 3, 2006)                                                                                                                                                                  |
| CONDENSED CONSOLIDATED BALANCE SHEETS                                                                                                                                                                                     |
| (Unaudited)                                                                                                                                                                                                               |
|                                                                                                                                                                                                                      |   |   |   |   |   |
|                                                                                                                                                                                                                      |   | March 31, |   |   | December 31, |   |
|                                                                                                                                                                                                                      |   | 2013 |   |   | 2012 |   |
| ASSETS                                                                                                                                                                                                                    |   |   |   |   |   |   |
| Current Asset                                                                                                                                                                                                             |   |   |   |   |   |   |
| Cash                                                                                                                                                                                                                      |   | $ | 20,595 |   |   | $ | 359 |   |
|                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |
| PROPERTY AND EQUIPMENT - Net                                                                                                                                                                                              |   |   | 306 |   |   |   | 306 |   |
|                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |
| OTHER ASSETS                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |
| Depository payment towards acquisition of iron ore mine                                                                                                                                                                   |   |   | 350,000 |   |   |   | 350,000 |   |
| Prepaid Expenses                                                                                                                                                                                                          |   |   | 117,500 |   |   |   | 470,000 |   |
|                                                                                                                                                                                                                      |   |   | 467,500 |   |   |   | 820,000 |   |
|                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |
| Total Assets                                                                                                                                                                                                              |   | $ | 488,401 |   |   | $ | 820,665 |   |
|                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' (DEFICIT)                                                                                                                                                                                   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |
| Current Liabilites                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |
| Accounts Payable                                                                                                                                                                                                          |   | $ | 846,810 |   |   | $ | 762,111 |   |
| Taxes payable                                                                                                                                                                                                             |   |   | 8,716 |   |   |   | 8,716 |   |
| Accrued interest payable                                                                                                                                                                                                  |   |   | 101,471 |   |   |   | 82,685 |   |
| Due to  stockholders                                                                                                                                                                                            |   |   | 6,000 |   |   |   | 6,000 |   |
| Loans payable                                                                                                                                                                                                             |   |   | 291,000 |   |   |   | 311,000 |   |
| Convertible debentures, net of debt discount of $81,900 and $0 as of  March 31, 2013 and December 31, 2012                                                                                                      |   |   | 56,100 |   |   |   | 38,000 |   |
| Derivative liability                                                                                                                                                                                                      |   |   | 299,659 |   |   |   | 209,100 |   |
| Total Current Liabilites                                                                                                                                                                                                  |   |   | 1,609,756 |   |   |   | 1,417,612 |   |
|                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |
| Convertible debentures, net of debt discount of $439,700 and $467,200 as of  March 31, 2013 and December 31, 2012, net of current portion                                                                       |   |   | 390,300 |   |   |   | 362,800 |   |
|                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |
| Total liabilities                                                                                                                                                                                                         |   |   | 2,000,056 |   |   |   | 1,780,412 |   |
|                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |
| Stockholders' Deficit (Note 8)                                                                                                                                                                                            |   |   |   |   |   |   |   |   |
| Convertible Preferred Stock Class A, no par value, 100,000 shares authorized at March 31, 2013 and  December 31, 2012. Issued and outstanding 20,000 shares at March 31, 2013 and  December 31, 2012. |   |   | 46,000 |   |   |   | 46,000 |   |
| Convertible Preferred Stock Class B, no par value, 400,000 shares authorized at March 31, 2013 and December 31, 2012. None issued and outstanding at March 31, 2013 and December 31, 2012.                 |   |
| Preferred Stock Class C, no par value, 50,000 shares authorized at March 31, 2013 and  December 31, 2012. Issued and outstanding 20,000 shares at March 31, 2013 and  December 31, 2012.              |   |   | 9,000 |   |   |   | 9,000 |   |
| Common stock, par value $.001 per share; authorized 500,000,000 shares, issued and outstanding 128,824,857 and 128,824,857 shares at March 31, 2013 and  December 31, 2012                                      |   |   | 128,825 |   |   |   | 128,825 |   |
| Additional Paid in Capital                                                                                                                                                                                                |   |   | 11,242,054 |   |   |   | 11,242,054 |   |
| Deficit Accumulated During the Development Stage                                                                                                                                                                          |   |   | (12,937,534 | ) |   |   | (12,385,626 | ) |
| Total Stockholders' Deficit                                                                                                                                                                                               |   |   | (1,511,655 | ) |   |   | (959,747 | ) |
| Total Liabilities and Stockholders' Deficit                                                                                                                                                                               |   | $ | 488,401 |   |   | $ | 820,665 |   |

----

| ALL GRADE MINING, INC.                                   |
|----------------------------------------------------------|
| (A Development Stage Company Commencing January 3, 2006) |
| CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS           |
| (Unaudited)                                              |
|                                                     |   |   |   |   |   |   |   |   |
|                                                     |   | Period Ended |   |   | January 3, 2006 (date of commencement as a development stage company) though March 31, 2013 |   |
|                                                     |   | March 31, |   |   | March 31, |   |   |   |   |
|                                                     |   | 2013 |   |   | 2012 |   |   |   |   |
|                                                     |   |   |   |   |   |   |   |   |   |
| Net Sales                                                |   | $ | - |   |   | $ | - |   |   | $ | 7,500 |   |
| Cost of Sales                                            |   |   | - |   |   |   | - |   |   |   | 3,135 |   |
| Gross Profit (Loss)                                      |   |   | - |   |   |   | - |   |   |   | 4,365 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating Expenses                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Officers’ compensation                             |   |   | 4,917 |   |   |   | 25,000 |   |   |   | 158,917 |   |
| Mine related expenses                                    |   |   | - |   |   |   | 5,000 |   |   |   | 327,500 |   |
| Consulting fees                                          |   |   | 427,500 |   |   |   | 17,500 |   |   |   | 2,746,921 |   |
| General and administrative                               |   |   | 61,026 |   |   |   | 57,796 |   |   |   | 644,428 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Operating Expenses                                 |   |   | 493,443 |   |   |   | 105,296 |   |   |   | 3,877,766 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating loss                                           |   |   | (493,443 | ) |   |   | (105,296 | ) |   |   | (3,873,401 | ) |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest income                                          |   |   | - |   |   |   | - |   |   |   | 12 |   |
| Other income                                             |   |   | 9 |   |   |   | - |   |   |   | 17,509 |   |
| Change in fair value of derivative liability             |   |   | 85,575 |   |   |   | 1,027,100 |   |   |   | 1,120,208 |   |
| Interest expense                                         |   |   | (144,049 | ) |   |   | (24,373 | ) |   |   | (1,061,449 | ) |
| Loss on debt conversion                                  |   |   | - |   |   |   | - |   |   |   | (5,089,313 | ) |
| Loss on negotiated debt settlement                       |   |   | - |   |   |   | - |   |   |   | (26,100 | ) |
| Loss on deposit to acquire property                      |   |   | - |   |   |   | - |   |   |   | (4,025,000 | ) |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Total other income and (expenses)                        |   |   | (58,465 | ) |   |   | 1,002,727 |   |   |   | (9,064,133 | ) |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                 |   | $ | (551,908 | ) |   | $ | 897,431 |   |   | $ | (12,937,534 | ) |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss Per Common Share:                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                    |   | $ | (0.00 | ) |   | $ | 0.01 |   |   |   |   |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted                                                  |   | $ | (0.00 | ) |   | $ | (0.00 | ) |   |   |   |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average number of common shares outstanding:    |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                    |   |   | 128,824,857 |   |   |   | 85,058,759 |   |   |   |   |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted                                                  |   |   | 128,824,857 |   |   |   | 107,296,535 |   |   |   |   |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |

----

| ALL GRADE MINING, INC.                                                      |   |
|-----------------------------------------------------------------------------|--------|
| (A Development Stage Company Commencing January 3, 2006)                    |   |
| CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS                              |   |
| (Unaudited)                                                                 |   |
|                                                                        |   | Period Ended |   |   | January 3, 2006 (date of commencement as a development stage company) though March 31, 2013 |   |
|                                                                        |   | March 31, |   |   | March 31, |   |   |   |   |
|                                                                        |   | 2013 |   |   | 2012 |   |   |   |   |
|                                                                        |   |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                       |   |   |   |   |   |   |   |   |   |
| Net Income (Loss)                                                           |   | $ | (551,908 | ) |   | $ | 897,431 |   |   | $ | (12,937,534 | ) |
| Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities: |   |   |   |   |   |   |   |   |   |
| Depreciation expense                                                        |   |   | - |   |   |   | 22 |   |   |   | 9,260 |   |
| Impairment of equipment                                                     |   |   | - |   |   |   | - |   |   |   | 3,907 |   |
| Issuance of stock for services                                              |   |   | - |   |   |   | - |   |   |   | 1,948,500 |   |
| Amortization of debt discount                                               |   |   | 45,600 |   |   |   | 13,500 |   |   |   | 170,500 |   |
| Change in fair value of derivative liability                                |   |   | (85,575 | ) |   |   | (1,027,100 | ) |   |   | (1,120,208 | ) |
| Non-cash Interest Expense                                                   |   |   | 76,134 |   |   |   | - |   |   |   | 770,667 |   |
| Loss on debt conversion                                                     |   |   | - |   |   |   | - |   |   |   | 5,089,313 |   |
| Loss on deposit to acquire property                                         |   |   | - |   |   |   | - |   |   |   | 4,025,000 |   |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Changes in Assets and Liabilities                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| (Increase) Decrease in prepaid expenses                                     |   |   | 352,500 |   |   |   | - |   |   |   | (117,500 | ) |
| Increase in Accounts Payable                                                |   |   | 84,699 |   |   |   | 59,600 |   |   |   | 905,785 |   |
| Increase in Accrued interest payable                                        |   |   | 18,786 |   |   |   | 2,000 |   |   |   | 124,371 |   |
| Increase in Payroll taxes payable                                           |   |   | - |   |   |   | 10,872 |   |   |   | 8,716 |   |
| NET CASH USED IN OPERATING ACTIVITES                                        |   |   | (59,764 | ) |   |   | (43,675 | ) |   |   | (1,119,223 | ) |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|  Purchase of property and equipment                                    |   |   | - |   |   |   | - |   |   |   | (13,473 | ) |
|  Depository payment towards acquisition of iron ore mine               |   |   | - |   |   |   | - |   |   |   | (350,000 | ) |
| NET CASH USED IN INVESTING ACTIVITIES                                       |   |   | - |   |   |   | - |   |   |   | (363,473 | ) |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash Proceeds (repayment) from advances                                     |   |   | - |   |   |   | 4,937 |   |   |   | 6,000 |   |
| Cash Proceeds (repayment) from loans                                        |   |   | (20,000 | ) |   |   | 5,198 |   |   |   | 303,900 |   |
| Cash Proceeds, net of repayments, from issuance of convertible debentures   |   |   | 100,000 |   |   |   | 32,500 |   |   |   | 1,103,000 |   |
| Issuance of common stock for cash                                           |   |   | - |   |   |   | - |   |   |   | 90,391 |   |
| NET CASH PROVIDED BY FINANCING ACTIVITIES                                   |   |   | 80,000 |   |   |   | 42,635 |   |   |   | 1,503,291 |   |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| (DECREASE) INCREASE IN CASH                                                 |   |   | 20,236 |   |   |   | (1,040 | ) |   |   | 20,595 |   |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH - BEGINNING OF PERIOD                                                  |   |   | 359 |   |   |   | 1,040 |   |   |   | - |   |
| CASH - END OF PERIOD                                                        |   | $ | 20,595 |   |   | $ | - |   |   | $ | 20,595 |   |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Supplemental Disclosure:                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash Paid for Interest                                                      |   | $ | - |   |   | $ | - |   |   | $ | - |   |
| Cash Paid for Income Taxes                                                  |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-cash investing and financing activities:                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Debt discount related to convertible debentures                             |   | $ | 35,453 |   |   | $ | 32,100 |   |   | $ | 722,053 |   |
| Issuance of shares for the settlement of debt                               |   | $ | - |   |   | $ | - |   |   | $ | 255,757 |   |

----

----

----

----

----

|                                               |   | Quoted Prices in Active Markets for Identical Liabilities |   |   | Significant Other Observable Inputs |   |   | Significant Observable Inputs |   |   | Balance at     |   |
|----------------------------------------------------|--------|-----------------------------------------------------------|--------|--------|-------------------------------------|--------|--------|-------------------------------|--------|--------|----------------|--------|
|                                               |   | (Level 1)                                                 |   |   | (Level 2)                           |   |   | (Level 3)                     |   |   | March 31, 2013 |   |
| Embedded conversion feature – March 31, 2013 |   | $                                                         | -      |   |                                | $      | -      |                          |   | $      | 299,659        |   |   | $ | 299,659 |   |

|                                                  |   | Quoted Prices in Active Markets for Identical Liabilities |   |   | Significant Other Observable Inputs |   |   | Significant Observable Inputs |   |   | Balance at        |   |
|-------------------------------------------------------|--------|-----------------------------------------------------------|--------|--------|-------------------------------------|--------|--------|-------------------------------|--------|--------|-------------------|--------|
|                                                  |   | (Level 1)                                                 |   |   | (Level 2)                           |   |   | (Level 3)                     |   |   | December 31, 2012 |   |
| Embedded conversion feature – December 31, 2012 |   | $                                                         | -      |   |                                | $      | -      |                          |   | $      | 209,100           |   |   | $ | 209,100 |   |

----

|                        |                                         |                                        | Embedded Conversion Feature                                                                       |
|-----------------------------|----------------------------------------------|---------------------------------------------|---------------------------------------------------------------------------------------------------|
|                        |                                         |                                        |                                                                                              |
| Balance - December 31, 2012 | $                                            |       209,100 |
|                        |                                         |                                        |                                                                                              |
|                        | Included in other income/expense             |                                        |                 - |
|                        | Change in fair value of derivative liability |                                        |        (85,575)                                                |
|                        | Conversion                                   |                                        |                 - |
|                        | Included in liabilities                      |                                        |       176,134                                                       |
|                        | Included in stockholders' equity             |                                        |                 - |
|                        | Transfers in and/or out of Level 3           |                                        |                 - |
|                        |                                         |                                        |                                                                                              |
| Balance - March 31, 2013    | $                                            |       299,659 |

|              |   | Amount |      |
|-------------------|--------|--------|-----------|
| May 31, 2012      |   | $      | 400,000   |   |
| August 31, 2012   |   |   | 500,000   |   |
| February 28, 2013 |   |   | 500,000   |   |
| August 31, 2013   |   |   | 500,000   |   |
| February 28, 2014 |   |   | 500,000   |   |
| August 31, 2014   |   |   | 500,000   |   |
|              |   |   |      |   |
| Total             |   | $      | 2,900,000 |   |

----

|                                                                       |   | March 31, 2013 |    |   | December 31, 2012 |   |
|----------------------------------------------------------------------------|--------|----------------|---------|--------|-------------------|--------|
|                                                                       |   |           |    |   |              |   |
| Convertible Debentures                                                     |   | $              | 968,000 |   |              | $      | 868,000 |   |
| Less current portion                                                       |   |           | 56,100  |   |              |   | 38,000 |   |
| Less debt discount                                                         |   |           | 521,600 |   |              |   | 467,200 |   |
| Long term Convertible Debentures, net of current portion and debt discount |   | $              | 390,300 |   |              | $      | 362,800 |   |

----

|                              |   | March 31, 2013 |    |   | December 31, 2012 |   |
|-----------------------------------|--------|----------------|---------|--------|-------------------|--------|
|                              |   |           |    |   |              |   |
| Loan payable to Louis Savaglio    |   | $              | 1,000   |   |              | $      | 1,000 |   |
| Loan payable to unrelated parties |   |           | 150,000 |   |              |   | 150,000 |   |
| Loan payable to unrelated parties |   |           | 140,000 |   |              |   | 160,000 |   |
| Total                             |   | $              | 291,000 |   |              | $      | 311,000 |   |

| (a)   | In 2006, the Company borrowed the sum of $16,000 from Louis Savaglio, an independent third party.  The loan is payable on demand and bears interest at the rate of 6.75% per annum. On November 30, 2009, the Company had repaid $5,000 with the issuance of 99,100 shares of common stock.  On July 14, 2011 Mr. Savaglio assigned $10,000 of his debt together with accrued interest of $3,156 to four entities unrelated to the Company.  Each new entity has a note for $3,289 carrying interest at 6%. Subsequently those four entities converted their loans into 13,462,000 shares of the Company’s common stock.  The balance due to Mr. Savaglio as of March 31, 2013 and December 31, 2012 was $1,000. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | On September 15, 2011, the Company borrowed $150,000 from an unrelated third party. The loan was due on October 15, 2011 together with interest at a rate of 25% per annum.  As of March 31, 2013, the accumulated interest on this loan was $47,015.  The Company is not in compliance with the repayment terms of the loan as it was not repaid on its maturity date and is currently in technical default. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | On November 15, 2011, the Company borrowed $50,000 from an unrelated third party.  The loan was due and payable upon the Company filing its Regulation D Offering with the SEC which occurred on August 1, 2011.  The note accrues interest at a rate of 4.0% per annum. As of March 31, 2013, the accumulated interest on this loan was $3,629; the Company is not in compliance with the repayment terms of the loan and is currently in technical default. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | On June 30, 2012, July 24, 2012, September 25, 2012 and November 8, 2012. The Company borrowed $25,000, $50,000, $15,000 and $20,000 from an unrelated third party.  These notes accrue interest at a rate of 0% per annum. On February 7, 2013 the amount of $20,000 was repaid plus accrued interest of $3,529. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ITEM 2 | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
|--------|---------------------------------------------------------------------------------------------|

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| Proceeds from financing activities |   | $      | 80,000  |   |
|------------------------------------|--------|--------|---------|--------|
| Cash used in investing activities  |   |   | -       |   |
| Cash used in operating activities  |   |   | (59,764 | )      |
|                               |   |   |    |   |
| Net decrease                       |   | $      | 20,236  |   |

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|              |   | Amount |      |
|-------------------|--------|--------|-----------|
| May 31, 2012      |   | $      | 400,000   |   |
| August 31, 2012   |   |   | 500,000   |   |
| February 28, 2013 |   |   | 500,000   |   |
| August 31, 2013   |   |   | 500,000   |   |
| February 28, 2014 |   |   | 500,000   |   |
| August 31, 2014   |   |   | 500,000   |   |
|              |   |   |      |   |
| Total             |   | $      | 2,900,000 |   |

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| ● | pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company,                                                                                                                              |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ● | provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with US GAAP, and that receipts and expenditures are being made only in accordance with authorizations of management and directors of the company, and  |
| ● | provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company’s assets that could have a material effect on the financial statements.                                                                                |

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| Exhibit 31.1      | Certification Pursuant to Section 302 of the Sarbanes Oxley Act |
|-------------------|-----------------------------------------------------------------|
|              |                                                            |
| Exhibit 32.1 | Certification Pursuant to Section 906 of the Sarbanes Oxley Act |

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