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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>UNITED
STATES</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>SECURITIES
AND EXCHANGE COMMISSION</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Washington,
D.C. 20549</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>FORM
S-8</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OF 1933</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><U>Xzeres
Corp</U>.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(Exact
name of registrant as specified in its charter)</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr>
    <td style="width: 50%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><U>Nevada</U></B></FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(State
        or other jurisdiction of</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">incorporation
        or organization)</FONT></P></td>
    <td style="width: 50%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><U>74-2329327
                           </U></B></FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(I.R.S.
        Employer</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Identification
        No.)</FONT></P></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>9025
SW Hillman Court, Suite 3126</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><U>Wilsonville,
OR 97070</U></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(Address
of principal executive offices) (Zip Code)</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><U>Consulting
Agreement between Xzeres Corp. and Bryan Clark</U></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(Full
title of the plans)</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Nevada Agency and Transfer Company</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><U>50 West Liberty St., Reno, NV 89501</U></B></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(Name
and Address of agent for service)</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><U>503-388-7350
</U></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(Telephone
number, including area code, of agent for service)</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">With
a copy to:</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Cane
Clark, LLP</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">3273
E. Warm Springs, Rd.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Las
Vegas, NV 89120</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Phone
(702) 312-6255</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Fax
(702) 940-7100</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Indicate
by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller
reporting company. See definitions of &ldquo;large accelerated filer,&rdquo; &ldquo;accelerated filer&rdquo; and &ldquo;smaller
reporting company&rdquo; in Rule 12b-2 of the Exchange Act. (Check one):</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Calibri, Helvetica, Sans-Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Large
accelerated filer &#168; Accelerated filer &#168; Non-accelerated filer &#168;</FONT></P>

<P STYLE="font: 10pt Calibri, Helvetica, Sans-Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Smaller
Reporting Company &#254;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>CALCULATION
OF REGISTRATION FEE</B></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="width: 80%">
<tr>
    <td style="vertical-align: bottom; width: 35%; border-bottom: black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Title
                                                                                     of Securities to be Registered</B></FONT></P></td>
    <td style="width: 1%; border-bottom: black 1.5pt solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="vertical-align: bottom; width: 10%; border-bottom: black 1.5pt solid; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Amount
    to be Registered</B></FONT></td>
    <td style="vertical-align: bottom; width: 2%; border-bottom: black 1.5pt solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="vertical-align: bottom; width: 16%; border-bottom: black 1.5pt solid; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Proposed
    Maximum Offering Price Per Share</B></FONT></td>
    <td style="vertical-align: bottom; width: 2%; border-bottom: black 1.5pt solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="vertical-align: bottom; width: 16%; border-bottom: black 1.5pt solid; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Proposed
    Maximum Aggregate Offering Price</B></FONT></td>
    <td style="vertical-align: bottom; width: 2%; border-bottom: black 1.5pt solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="vertical-align: bottom; width: 16%; border-bottom: black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Amount
                                                                                     of </B></FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Registration
        Fee</B></FONT></P></td></tr>
<tr style="background-color: #CCFFCC">
    <td style="vertical-align: bottom; font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Common
    Stock, $.001 par value</FONT></td>
    <td><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="vertical-align: bottom; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">300,000
    (1)</FONT></td>
    <td style="vertical-align: bottom"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="vertical-align: bottom; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$0.56
    (2)</FONT></td>
    <td style="vertical-align: bottom"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="vertical-align: bottom; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$168,000</FONT></td>
    <td style="vertical-align: bottom"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="vertical-align: bottom; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$22.92</FONT></td></tr>
</table>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
    <td style="width: 8%; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(1)
    </FONT></td>
    <td style="width: 92%; font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Represents
    shares of common stock issued pursuant to the Consulting Agreement between Xzeres Corp. and Bryan Clark.</FONT></td></tr>
<tr style="vertical-align: top">
    <td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(2)
    </FONT></td>
    <td style="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Estimated solely
    for purposes of calculating the registration fee in accordance with Rule 457(c) of the Securities Act of 1933, as amended,
    using the last sale price reported on the OTCQB on September 18, 2013.</FONT></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>EXPLANATORY
NOTE</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">This
Registration Statement is being filed by Xzeres Corp. (the &ldquo;Company&rdquo;) in accordance with the requirements of Form
S-8 under the Securities Act of 1933, as amended (the &ldquo;Securities Act&rdquo;), in order to register 300,000 shares of the
Company&rsquo;s common stock, par value $.001 per share, the amount of shares issuable under the Company&rsquo;s Consulting Agreement
with Bryan Clark (the &ldquo;Consultant&rdquo;), which agreement is filed as an exhibit to this Registration Statement (the &ldquo;Consulting
Agreement&rdquo;).</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">This
Form S-8 includes a <FONT STYLE="background-color: white">reoffer prospectus</FONT> prepared in accordance with Part I of Form
S-3 under the Securities Act. The <FONT STYLE="background-color: white">reoffer prospectus</FONT> may be used for reoffer and
resales of restricted securities (as such term is defined in General Instruction C to Form S-8) acquired pursuant to the Consulting
Agreement.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>PART
I</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>INFORMATION
REQUIRED IN THE SECTION 10(a) PROSPECTUS</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
    <td style="width: 72px; font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Item
    1.</B></FONT></td>
    <td style="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Plan Information.</B></FONT></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
Company will provide the Consultant with documents that contain information related to the Consulting Agreement, and other information
including, but not limited to, the disclosure required by Item 1 of Form S-8, which information is not required to be and are
not being filed as a part of this Registration Statement on Form S-8 (the &ldquo;Registration Statement&rdquo;) or as prospectuses
or prospectus supplements pursuant to Rule 424 under the Securities Act. The foregoing information and the documents incorporated
by reference in response to Item 3 of Part II of this Registration Statement, taken together, constitute a prospectus that meets
the requirements of Section 10(a) of the Securities Act. A Section 10(a) prospectus will be given to the Consultant who receives
common stock covered by this Registration Statement, in accordance with Rule 428(b)(1) under the Securities Act.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
    <td style="width: 72px; font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Item
    2.</B></FONT></td>
    <td style="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Registrant
    Information and Employee Plan Annual Information.</B></FONT></td></tr>
</table>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">We
will provide to each Consultant a written statement advising of the availability of documents incorporated by reference in Item
3 of Part II of this Registration Statement (which documents are incorporated by reference in this Section 10(a) prospectus) and
of documents required to be delivered pursuant to Rule 428(b) under the Securities Act without charge and upon written or oral
request by contacting:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Xzeres
Corp.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Attn:
Steven Shum</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">9025
SW Hillman Court, Suite 3126</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Wilsonville,
OR 97070<FONT STYLE="color: black"> </FONT></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">503-388-7350</FONT></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; background-color: #FFF685"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; background-color: white"><B>REOFFER
PROSPECTUS</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Xzeres
Corp.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>300,000
Shares of</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Common
Stock</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">This
<FONT STYLE="background-color: white">reoffer prospectus</FONT> relates to the sale of up to 300,000 shares of our common stock,
$.001 par value per share that may be offered and resold from time to time by the selling stockholder identified in this prospectus
for his own account issuable pursuant to the Consulting Agreement. It is anticipated that the selling stockholder will offer common
shares for sale from time to time in one or more transactions on the OTCQB, or such other stock market or exchange on which our
common stock may be listed or quoted, in negotiated transactions or otherwise, at market prices prevailing at the time of the
sale or at prices otherwise negotiated (see &ldquo;Plan of Distribution&rdquo; starting on page 18 of this prospectus). We will
receive no part of the proceeds from sales made under this <FONT STYLE="background-color: white">reoffer prospectus.</FONT> The
selling stockholder will bear all sales commissions and similar expenses. Any other expenses incurred by us in connection with
the registration and offering and not borne by the selling stockholder will be borne by us.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
shares of common stock have been issued pursuant to the Consulting Agreement.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">This
<FONT STYLE="background-color: white">reoffer prospectus</FONT> has been prepared for the purposes of registering the common shares
under the Securities Act to allow for future sales by selling stockholders on a continuous or delayed basis to the public without
restriction.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Investing
in our common stock involves risks. See &quot;Risk Factors&quot; beginning on page 6 of this <FONT STYLE="background-color: white">reoffer
prospectus.</FONT> These are speculative securities.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Since
our company does not currently meet the registrant requirements for use of Form S-3, the amount of common shares which may be
resold by means of this <FONT STYLE="background-color: white">reoffer prospectus</FONT> by the selling stockholder, and any other
person with whom he or she is acting in concert for the purpose of selling securities of our company, must not exceed, in any
three month period, the amount specified in Rule 144(e) promulgated under the Securities Act.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Our
common stock is quoted on the OTCQB under the symbol &ldquo;XPWR&rdquo; and the last reported sale price of our common stock on
September 18, 2013 was $0.56 per share.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>NEITHER
THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED OF THESE SECURITIES OR
DETERMINED IF THIS PROSPECTUS IS TRUTHFUL OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
date of this prospectus is September 20, 2013</FONT></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>XZERES
CORP.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>TABLE
OF CONTENTS</B></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="width: 70%">
<tr>
    <td style="vertical-align: top; width: 93%; padding-bottom: 1.5pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="vertical-align: top; width: 5%; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Page</B></FONT></td></tr>
<tr style="background-color: #CCFFCC">
    <td style="vertical-align: top; font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Prospectus
    Summary</FONT></td>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">5</FONT></td></tr>
<tr style="background-color: white">
    <td style="vertical-align: top; font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Risk
    Factors</FONT></td>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">6</FONT></td></tr>
<tr style="background-color: #CCFFCC">
    <td style="vertical-align: top; font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Cautionary
    Note Regarding Forward-Looking Statements</FONT></td>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">15</FONT></td></tr>
<tr style="background-color: white">
    <td style="vertical-align: top; font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Use
    of Proceeds</FONT></td>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">16</FONT></td></tr>
<tr style="background-color: white">
    <td style="vertical-align: top; font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Selling
    Stockholders</FONT></td>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">16</FONT></td></tr>
<tr style="background-color: #CCFFCC">
    <td style="vertical-align: top; font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Plan
    of Distribution</FONT></td>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">17</FONT></td></tr>
<tr style="background-color: white">
    <td style="vertical-align: top; font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Legal
    Matters</FONT></td>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">19</FONT></td></tr>
<tr style="background-color: #CCFFCC">
    <td style="vertical-align: top; font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Experts</FONT></td>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">19</FONT></td></tr>
<tr style="background-color: white">
    <td style="vertical-align: top; font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Incorporation
    of Certain Documents by Reference</FONT></td>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">20</FONT></td></tr>
<tr style="background-color: #CCFFCC">
    <td style="vertical-align: top; font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Disclosure
    of Commission Position on Indemnification For Securities Act Liabilities</FONT></td>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">21</FONT></td></tr>
<tr style="background-color: white">
    <td style="vertical-align: top; font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Additional
    Information Available to You</FONT></td>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">21</FONT></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">NO
PERSON HAS BEEN AUTHORIZED TO GIVE ANY INFORMATION OR TO MAKE ANY REPRESENTATIONS, OTHER THAN THOSE CONTAINED IN THIS PROSPECTUS,
IN CONNECTION WITH THE OFFERING MADE HEREBY, AND, IF GIVEN OR MADE, SUCH INFORMATION OR REPRESENTATION MUST NOT BE RELIED UPON
AS HAVING BEEN AUTHORIZED BY THE COMPANY OR ANY OTHER PERSON. NEITHER THE DELIVERY OF THIS PROSPECTUS NOR ANY SALE MADE HEREUNDER
SHALL UNDER ANY CIRCUMSTANCES CREATE ANY IMPLICATION THAT THERE HAS BEEN NO CHANGE IN THE AFFAIRS OF THE COMPANY SINCE THE DATE
HEREOF. THIS PROSPECTUS DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY ANY SECURITIES OFFERED HEREBY
BY ANYONE IN ANY JURISDICTION IN WHICH SUCH OFFER OR SOLICITATION IS NOT AUTHORIZED OR IN WHICH THE PERSON MAKING SUCH OFFER OR
SOLICITATION IS NOT QUALIFIED TO DO SO OR TO ANY PERSON TO WHOM IT IS UNLAWFUL TO MAKE SUCH OFFER OR SOLICITATION.</FONT></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><A
NAME="a_001"></A><B>PROSPECTUS SUMMARY</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">We
are located in Wilsonville, Oregon and were originally incorporated in the state of New Mexico in January of 1984. We were engaged
in the natural gas and asphalt businesses until 2007, at which time we liquidated our assets and operations and distributed the
net proceeds to our shareholders after paying our debts. On October 2, 2008, we re-domiciled from New Mexico to Nevada and commenced
operations in the wind turbine business in the fiscal quarter ended May 31, 2010. We are in the business of designing, developing,
and marketing small wind turbine systems and related equipment for electrical power generation, specifically for use in residential,
small business, rural electric utility systems, other rural locations, and other infrastructure applications.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">We
operate two wholly-owned subsidiaries: XZERES Energy Services Corp., which was incorporated in Nevada in January, 2011 and XZERES
Wind Europe Limited, which was formed in Ireland in October, 2010.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Our
principal offices are located at 9025 SW Hillman, Suite 3126, Wilsonville, OR 97070. Our phone number is (503) 388-7350.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">We
are in the business of designing, developing, and marketing distributed generation, wind power systems for the small wind (2.4kW-100kW)
market as well as power management solutions. We design, develop, manufacture, test, assemble and market our systems around the
world. Our grid connected and off grid wind turbine systems, which consist of our 2.4kW and 10kW devices and related equipment,
are utilized for electrical power generation for applications and markets such as residential, micro-grid based rural and island
electrification, agricultural, small business, rural electric utility systems, as well as other private, corporate infrastructure
and government applications. Our wind power systems are focused on distributed energy, where a specific machine's energy output
is largely or entirely used on-site where the equipment is installed, as well as grid connected applications. While many of our
customers take advantage of their local net-metering rules within the United States and Feed In Tariffs that are often available
in Europe and Internationally (to sell power back to the grid), our wind power systems are not dependent on transmission needs
to carry the energy produced to another location and are therefore well suited for remote electrification, available with or without
a battery coupled solution. Our power management solutions are deployed primarily for commercial and light industrial applications,
and secondarily residential usage and target both urban and rural customers.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Our
wind turbine products integrate with currently available complementary products from other manufacturers, such as inverters, lightning
protection equipment and towers. We do not have any written agreements with these other manufacturers. Our systems comprise several
major components including the turbine sub-system (which converts wind energy into electricity), the tower (which holds the turbine
high in the wind), a turbine controller (which controls the turbine subsystem and contains monitoring hardware and software),
and an inverter (which converts the electricity generated from direct current (DC) to alternating current (AC) to connect to a
customer&rsquo;s electrical load or to the grid). We currently design and engineer the turbine and controller, but contract the
manufacturing of the turbine and controller through outside parties. The tower, while designed to specifications suitable to our
turbine requirements, is made and sold by separate companies depending on the style that the customer orders. Similarly, the inverter,
which converts the energy generated to a form suitable to connect into the electric grid, is manufactured by another company and
is a commercial off-the-shelf product. We sell a &ldquo;system&rdquo; with all of these parts included in the selling price. The
system will not operate as designed without these complementary products. In the case of the inverter, there are other commercially
available products that will integrate with our components, but we perform the system integration design to sell the entire system
as a package to the customer. Going forward, we intend to develop new turbine systems, designed for ease of installation and to
certification standards which cover standard testing procedures, power ratings, and structural designs of small wind systems.</FONT></P>

<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">We
utilize local dealers to market, sale, and install our products in the various regions in which we operate. Our internal sales,
marketing, and support helps provide assistance to our dealers in the form of direct sales lead generation, customer site assessment,
assistance with government-based financial incentives and local permitting, application engineering, installation, support and
maintenance.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">In
addition to our wind turbine business, we manufacture and sell a family of power efficiency products which are designed to improve
the &ldquo;power factor&rdquo; and reduce the amount of reactive power being drawn at a location. This expands our product offering
beyond small wind power generation into the realm of power management and power efficiency solutions. The addition of this complementary
and diversified family of products enables us to offer both business and residential customers, in urban and rural locations,
the ability to reduce their power consumption, extend the life of their electrical equipment and electronics via central surge
suppression, reduce their carbon footprint, and depending upon the type of customer and the application, provide significant energy
savings. We sale our product line of power efficiency devices targeted at small to medium-sized businesses.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><A
NAME="a_002"></A><B>RISK FACTORS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><I>Investing
in our common stock involves a high degree of risk. Prospective investors should carefully consider the risks described below
and other information contained in this prospectus, before purchasing shares of our common stock. There are numerous and varied
risks that may prevent us from achieving our goals. If any of these risks actually occur, our business, financial condition and
results of operations may be materially adversely affected. In that case, the trading price of our common stock could decline
and investors in our common stock could lose all or part of their investment.</I></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Risks
Related to Our Business Model</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>The
small wind energy business has continued to gain broader commercial acceptance, but is also influenced by many factors, some of
which can materially affect the industry and impact our operations.</I></B></FONT></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Many
factors may affect the commercial acceptance of small wind energy technology, including the following:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<UL TYPE="SQUARE" STYLE="margin-top: 0in">

<LI STYLE="margin: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">performance,
reliability and cost-effectiveness of wind energy technology compared to conventional and other renewable energy sources and products;</FONT></LI>

</UL>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 17.1pt"></P>

<UL TYPE="SQUARE" STYLE="margin-top: 0in">

<LI STYLE="margin: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">developments
relating to other alternative energy generation technologies;</FONT></LI>

</UL>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 17.1pt"></P>

<UL TYPE="SQUARE" STYLE="margin-top: 0in">

<LI STYLE="margin: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">fluctuations
in economic and market conditions that affect the cost or viability of conventional and alternative energy sources, such as increases
or decreases in the prices of oil and other fossil fuels;</FONT></LI>

</UL>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 17.1pt"></P>

<UL TYPE="SQUARE" STYLE="margin-top: 0in">

<LI STYLE="margin: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">overall
growth in the alternative energy equipment market;</FONT></LI>

</UL>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 17.1pt"></P>

<UL TYPE="SQUARE" STYLE="margin-top: 0in">

<LI STYLE="margin: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">availability
and terms of government subsidies and incentives to support the development of alternative energy sources, including small wind
energy;</FONT></LI>

</UL>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<UL TYPE="SQUARE" STYLE="margin-top: 0in">

<LI STYLE="margin: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">fluctuations
in capital expenditures by utilities and independent power producers, which tend to decrease when the economy slows and interest
rates increase; and</FONT></LI>

</UL>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 17.1pt"></P>

<UL TYPE="SQUARE" STYLE="margin-top: 0in">

<LI STYLE="margin: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">the development
of new and profitable applications requiring the type of remote electric power provided by small wind energy systems.</FONT></LI>

</UL>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>Our
suppliers may not supply us with a sufficient amount of components or components of adequate quality or they may provide components
at significantly increased prices, which would impact our revenue and profitability.</I></B></FONT></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">We
assemble our products using component parts manufactured by third parties. Some of these components are currently available only
from a limited number of sources. We do not have any written material long-term supply contracts with any suppliers. As a result,
we may experience delays in production if we fail to identify alternative suppliers, or if any parts supply is interrupted, each
of which could materially adversely affect our business and operations. If we fail to anticipate customer demand properly, an
oversupply of parts could result in excess or obsolete inventories, which could adversely affect our business. To date, we have
not been subject to any production delays or been affected by a shortage or surplus in supplies; however, a reduction or interruption
in supply, a significant increase in price of one or more components or a decrease in demand of products could materially adversely
affect our business and operations and could materially damage our customer relationships. Financial problems of suppliers on
whom we rely could limit our supply of components or increase our costs. Also, we cannot guarantee that any of the parts or components
that we expect to purchase will be of adequate quality or that the prices we pay for the parts or components will not increase.
Inadequate quality of products from suppliers could interrupt our ability to supply quality products to our customers in a timely
manner. Additionally, defects in materials or products supplied by our suppliers that are not identified before our products are
placed in service by our customers could result in higher warranty costs and damage to our reputation. Some of our suppliers obtain
components internationally. As a result, we may be indirectly subject to delays in delivery due to the timing or regulations associated
with the import/export process, delays in transportation or regional instability.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>Because
our sales strategy partly relies on dealers to distribute and support our products if we are unable to maintain those relationships
and create new ones our business will suffer.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Dealers
are an important aspect in our sales and distribution strategy. Dealers provide a vital link to potential end users of renewable
energy. There can be no assurance that we will be successful in maintaining our existing dealer relationships or establishing
new ones on favorable terms, or at all. If we are not able to establish a viable, larger network of dealers for our products,
our sales and our ability to support our customers will be adversely affected, which could have a material adverse effect on our
business, including our operating results, financial condition and cash flow.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 17.1pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>Product
quality expectations may not be met causing slower market acceptance.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Despite
our continuous quality improvement initiatives, we may not meet customer expectations. Any significant quality issues with our
products could have a material adverse effect on our rate of product adoption, results of operations, financial condition and
cash flow. Moreover, as we develop new products and new configurations for our wind turbines or as our customers place existing
configurations in commercial use, our products may perform below expectations. Any significant performance below expectations
could adversely affect our operating results, financial condition and cash flow and affect the marketability of our products.</FONT></P>

<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-indent: 17.1pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>Because
we sell our products with a ten year limited warranty, we are subject to losses based on defective products and other potential
covered product problems.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">We
sell our products with a ten year limited warranty covering certain parts. There can be no assurance that the provision for estimated
product warranty expenses, currently set at approximately 2% of gross sales, will be sufficient to cover our warranty expenses
in the future. We cannot ensure that our efforts to reduce our risk through warranty disclaimers will effectively limit our liability.
Any significant incurrence of warranty expense in excess of estimates could have a material adverse effect on our business, including
our operating results, financial condition and cash flow.</FONT></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>If
we are unable to succeed in marketing, making sales and increasing our customer base to support our business operations, we will
be unable to achieve profitable operations and our business may fail.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">If we are
unable to succeed in establishing, training and expanding a distribution network domestically and internationally, partnering
with renewable energy consultants, making sales, and expanding our customer base to support our business operations, it could
have a material adverse effect on our business, including our operating results, financial condition and cash flow.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>If
technological changes in the power industry render our products uncompetitive or obsolete, our market share may decline and cause
our business to suffer.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The alternative
power market is characterized by continually changing technology requiring improved features, such as higher quality, increased
efficiency, higher power output and lower price. Our failure to further refine our technology and develop and introduce new power
products could cause our products to become uncompetitive or obsolete, which could reduce our market share and cause our revenues
to decline. The alternative power industry is rapidly evolving and competitive. We will need to invest additional resources in
research and development to keep pace with technological advances in the alternative power industry and to effectively compete
in the future. While we intend to continually improve our products, our development efforts may be rendered obsolete by the technological
advances of others, and other technologies may prove more advantageous for the commercialization of alternative power products.
Should this occur, it could have a material adverse effect on our business, including our operating results, financial condition
and cash flow.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>If
we fail to respond to changes in customer preferences in a timely manner, our sales may be adversely affected, and our business
may suffer.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The small
wind power industry is highly competitive, and other suppliers of similar product are also attempting to gain competitive advantages
as well. Our financial performance depends on our ability to identify, originate and define industry trends, as well as to anticipate,
gauge and react to changing customer preferences in a timely manner. If we misjudge the demands of the small wind power market,
it could have a material adverse effect on our business, including our operating results, financial condition and cash flow.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 17.1pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>The
complexity of our products may lead to errors, defects, and bugs, which could subject us to significant costs or damages and adversely
affect market acceptance of our products, and our business may suffer.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Our products
may contain undetected errors, weaknesses, defects or bugs as is or as new models are released. If our products or future products
contain production defects, reliability, quality or compatibility problems that are significant to our customers, our reputation
may be damaged and customers may be reluctant to continue to buy our products, which could adversely affect our ability to retain
and attract new customers. In addition, these defects or bugs could interrupt or delay sales of affected products, which could
have a material adverse effect on our business, including our operating results, financial condition and cash flow.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">We may be
required to make significant expenditures of capital and other resources to resolve the problems. This could result in significant
additional development costs and the diversion of technical and other resources from our other development efforts. We could also
incur significant costs to repair or replace defective products. These costs or damages could have a material adverse effect on
our business, including our operating results, financial condition and cash flow.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 17.1pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>If
we are unable to successfully manage growth, our operations could be adversely affected.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Potential
risks to our overall growth outlook include: the ability of our suppliers to ramp production, closed customers taking longer to
prepare their sites for installation, since we do not recognize revenue until we deliver the system to the customer; negative
changes in available incentives for renewable energy; increased restrictions on obtaining permits; and a deterioration in sentiment
toward wind energy. With respect to incentives (a key driver in developed areas), there is a tendency for programs to be adjusted
periodically. Our experience is that while one region may cut incentives, another area expands incentives. We would expect this
ebb and flow of incentives around the world to continue and our global positioning positions us to take advantage of such trends.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">As opposed
to our wind turbine systems, our power efficiency products generally do not receive incentives and are not subject to lengthy
permitting processes or installation needs. However, it does often take time to educate a potential customer about the benefits
of this technology. We are experiencing a growing pipeline of activity in our power efficiency business.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Our progress
is expected to require the full utilization of our management, financial and other resources, which to date has occurred with
limited working capital. Our ability to manage growth effectively will depend on our ability to improve and expand operations,
including our financial and management information systems, and to recruit, train and manage technical and sales personnel. There
can be no absolute assurance that management will be able to manage growth effectively.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">If we do
not properly manage the growth of our business, we may experience significant strains on our management and operations and disruptions
in our business. Various risks arise when companies and industries grow quickly. If our business or industry grows too quickly,
our ability to meet customer demand in a timely and efficient manner could be challenged. We may also experience development or
production delays as we seek to meet increased demand for our products. Our failure to properly manage the growth that we or our
industry might experience could negatively impact our ability to execute on our operating plan and, accordingly, could have an
adverse impact on our business, our cash flow and results of operations, and our reputation with our current or potential customers.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>If
we are not able to service the loan agreement in place with our senior-secured lender, our results of operations and financial
condition will be immediately impacted.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">On April
1, 2013, we entered into a series of agreements that provide us with a senior secured lending facility (the &ldquo;Loan&rdquo;)
in an initial amount of $2.1 million up to a potential total funding amount of $6.5 million, subject to certain performance conditions.
The Loan is funded by Renewable Power Resources, LLC, a Delaware limited liability company with offices in New York (the &ldquo;Lender&rdquo;).
Balances owed under the Loan bear interest at an annual rate of 10%. Unused loan balances bear interest at 2.25% per annum. The
Loan also provides for other fees and compensation due to the Lender, including but not limited to a collateral administration
fee of 2.75% and the grant of a warrant to purchase up to 7.5 million shares of our common stock at any time over the next 48
months at a strike price of $0.35 per share. The Lender also has the ability to convert up to $1.625 million of the balance owed
under the Loan into an additional warrant to purchase up to 3.25 million shares of our common stock, also exercisable at $0.35
per share. The Loan is made by us and our US subsidiary and is guaranteed by our UK subsidiary.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Also as
a result of the Loan, certain terms of our existing $1.5 million secured credit facility with Hanover have been amended. In particular,
us and Hanover have agreed to a revised payoff schedule for the balance owed to Hanover under the current credit facility between
us and Hanover, and Hanover has agreed to subordinate the priority of its security interest in our assets to the new security
interest created in favor of Renewable Power Resources, LLC as part of the Loan.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">On April
5, 2013, we entered into consulting agreements with Hofflich &amp; Associates, Inc. (&ldquo;Hofflich&rdquo;) to provide us with
management support services including that related to financial reporting, budgeting, and general financing strategy. We have
agreed to pay Hofflich Value a weekly fee in the amount of $17,500.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">On the same
day, we also entered into an advisory agreement with Max Value Advisors, LLC (&ldquo;Max Value&rdquo;) to provide us with strategic
financial advice. We have agreed to pay Max Value a monthly fee in the amount of $40,000.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">These agreements
were required by the terms of our senior secured lending facility loan funded by Renewable Power Resources, LLC.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Our ability
to service the senior-secured debt as well as the subordinated debt is critical to our survival. In the event that we default
in our debt obligations, our business results and financial condition will be immediately impaired.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Risks
Related to Control Persons, Key Employees and Management</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 17.1pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>Because
our business is dependent upon the performance of key employees and consultants, the loss of those persons would materially impact
our business.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Our business
is dependent upon the performance of certain key employees, notably our CEO and director, Frank Greco, our CFO and director, Steven
Shum. The loss of any of these key persons could have a material adverse effect on our business, including our operating results,
financial condition and cash flow.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 17.1pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>Our
board of directors may change our operating policies and strategies without prior notice or stockholder approval and such changes
could harm our business and results of operations and the value of our stock.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Our board
of directors has the authority to modify or waive our current operating policies and strategies without prior notice and without
stockholder approval. We cannot predict the effect any changes to our current operating policies and strategies would have on
our business, operating results and value of our stock. However, the effects could have a material adverse effect on our business,
including our operating results, financial condition and cash flow.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 17.1pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Risks
Related to Legal Uncertainty</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 17.1pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>If
our products are found to cause injury, have defects, or fail to meet industry standards, we will incur substantial litigation,
judgment, product liability, and product recall costs, which could cause our business to fail.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">We may be
subject to liability for any accidents or injury that may occur in connection with the use of our products or due to claims of
defective design, integrity or durability of the products. Product liability claims could adversely affect our brand name reputation,
revenues and ultimately lead to losses. In addition, product defects could result in product recalls and warranty claims. A product
recall could delay or halt the sale of our products until we are able to remedy the product defects. The occurrence of any claims
or judgments , or product recalls will negatively affect our brand name image and could have a material adverse effect on our
business, including our operating results, financial condition and cash flow.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>If
any of the products we expect to sell infringe on the intellectual property rights of others, we may find ourselves involved in
costly litigation, which could cause our business to fail.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Although
we have not received notices of any alleged infringement, we cannot be certain that the products we will manufacture do not infringe
on issued patents, trademarks and/or copyright rights of others. We may be subject to legal proceedings and claims from time to
time in our ordinary course of business arising out of intellectual property rights of others. These legal proceedings can be
very costly, and could have a material adverse effect on our business, including our operating results, financial condition and
cash flow.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><I>&nbsp;</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>If
we are not granted full protection for property rights over our name and trademark, we may have difficulty safeguarding our name
or the public&rsquo;s identification of our brand resulting in a potential loss of any competitive advantage.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0">Our success will depend, in part, on our ability
to obtain and enforce intellectual property rights over our product designs, name and trademark in both the United States and other
countries. We have eleven trademarks across several countries and twelve additional trademark applications pending. There can be
no assurance that the steps we intend to take to protect our rights will be adequate, that we will be able to secure protections
or registrations for our rights or marks in the United States or in foreign countries or that third parties will not infringe upon
our territorial rights or misappropriate our technology, designs, copyrights, trademarks, service marks, domain name and similar
proprietary rights. In addition, effective intellectual property protection may be unenforceable or limited in certain foreign
countries. It is possible that our competitors or others will adopt product or service names similar to ours, thereby impeding
our ability to build brand identity which could possibly lead to customer confusion. Our inability to protect our intellectual
property adequately could have a material adverse effect on the acceptance of our brand and on our business, financial condition
and operating results. In the future, litigation may be necessary to enforce and protect our territorial distribution rights, our
trade secrets, copyrights and other intellectual property rights. Litigation would divert management resources and be expensive
and may not effectively protect our intellectual property. We may be subject to litigation for claims of infringement of the rights
of others or to determine the scope and validity of the territorial and/or intellectual property rights of others. If other parties
file applications for marks used or registered by us, we may have to oppose those applications and participate in administrative
proceedings to determine priority of rights to the mark, which could result in substantial costs to us due to the diversion of
management&rsquo;s attention and the expense of such litigation, even if the eventual outcome is favorable to us. Adverse determinations
in such litigation could result in the loss of certain of our proprietary intellectual property.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>We
may be exposed to patent infringement, misappropriation or other claims by third parties and an adverse determination could result
in us paying significant damages.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0">Our success depends, in part, on our ability
to use and develop our technology and know-how and to manufacture products without infringing the intellectual property or other
rights of third parties. We own five issued patents and eight pending patent applications covering certain aspects of our technology.
We may be subject to litigation involving claims of patent infringement or violation of intellectual property rights of third
parties. The validity and scope of claims relating to wind power technology patents involve complex scientific, legal and factual
questions and analyses and, therefore, may be highly uncertain. The defense and prosecution of intellectual property suits, patent
opposition proceedings, trademark disputes and related legal and administrative proceedings can be both costly and time consuming
and may significantly divert our resources and the attention of our technical and management personnel. An adverse ruling in any
such litigation or proceedings could subject us to significant liability to third parties, require us to seek licenses from third
parties, to pay ongoing royalties, or to redesign our products or subject us to injunctions prohibiting the manufacture and sale
of our products or the use of our technologies. Protracted litigation could also result in our customers or potential customers
deferring or limiting their purchase or use of our products until resolution of such litigation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><I>&nbsp;</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>Because
the payment of dividends is at the discretion of the Board of Directors, investors may not realize cash dividends at the frequency
or in the amounts they anticipate.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">With the
exception of the dividend paid upon the liquidation of our former oil and gas operations in the fiscal year ended February 28,
2009, we have never declared or paid any cash dividends on our common stock. Our payment of any future dividends will be at the
discretion of our board of directors after taking into account various factors, including but not limited to our financial condition,
operating results, cash needs, growth plans and the terms of any credit agreements that we may be a party to at the time. Distributions
to our stockholders are subordinate to the payment of our debts and obligations. If we have insufficient funds to pay our debts
and obligations, distributions to stockholders will be suspended pending the payment of such debts and obligations. Accordingly,
investors must rely on sales of their own common stock after price appreciation, which may never occur, as the only way to recover
their initial investment.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 17.1pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>Because
we intend to conduct business outside of the United States, we will be subject to risks of doing business in foreign countries
which are not found in doing business in the United States which could have a material adverse effect on our business.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">We intend
to conduct business outside of the United States, specifically Europe and Asia-Pacific. Doing business in foreign countries carries
with it certain risks that are not found in doing business in the United States, which could have a material adverse effect on
our business, including our operating results, financial condition and cash flow. The risks of doing business in foreign countries
that could result in losses against which we are not insured include:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 17.1pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<UL TYPE="SQUARE" STYLE="margin-top: 0in">

<LI STYLE="margin: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">exposure
to local economic conditions;</FONT></LI>

</UL>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 17.1pt"></P>

<UL TYPE="SQUARE" STYLE="margin-top: 0in">

<LI STYLE="margin: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">potential
adverse changes in the diplomatic relations of foreign countries with the United States;</FONT></LI>

</UL>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 17.1pt"></P>

<UL TYPE="SQUARE" STYLE="margin-top: 0in">

<LI STYLE="margin: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">hostility
from local populations;</FONT></LI>

</UL>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 17.1pt"></P>

<UL TYPE="SQUARE" STYLE="margin-top: 0in">

<LI STYLE="margin: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">the adverse
effect of currency exchange controls;</FONT></LI>

</UL>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 17.1pt"></P>

<UL TYPE="SQUARE" STYLE="margin-top: 0in">

<LI STYLE="margin: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">restrictions
on the withdrawal of foreign investment and earnings;</FONT></LI>

</UL>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 17.1pt"></P>

<UL TYPE="SQUARE" STYLE="margin-top: 0in">

<LI STYLE="margin: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">government
policies against businesses owned by foreigners;</FONT></LI>

</UL>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 17.1pt"></P>

<UL TYPE="SQUARE" STYLE="margin-top: 0in">

<LI STYLE="margin: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">investment
restrictions or requirements;</FONT></LI>

</UL>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 17.1pt"></P>

<UL TYPE="SQUARE" STYLE="margin-top: 0in">

<LI STYLE="margin: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">expropriations
of property;</FONT></LI>

</UL>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 17.1pt"></P>

<UL TYPE="SQUARE" STYLE="margin-top: 0in">

<LI STYLE="margin: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">the potential
instability of foreign governments;</FONT></LI>

</UL>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 17.1pt"></P>

<UL TYPE="SQUARE" STYLE="margin-top: 0in">

<LI STYLE="margin: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">the risk
of insurrections;</FONT></LI>

</UL>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 17.1pt"></P>

<UL TYPE="SQUARE" STYLE="margin-top: 0in">

<LI STYLE="margin: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">risks of
renegotiation or modification of existing agreements with governmental authorities;</FONT></LI>

</UL>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 17.1pt"></P>

<UL TYPE="SQUARE" STYLE="margin-top: 0in">

<LI STYLE="margin: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">foreign
exchange restrictions;</FONT></LI>

</UL>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 17.1pt"></P>

<UL TYPE="SQUARE" STYLE="margin-top: 0in">

<LI STYLE="margin: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">withholding
and other taxes on remittances and other payments by subsidiaries; and</FONT></LI>

</UL>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 17.1pt"></P>

<UL TYPE="SQUARE" STYLE="margin-top: 0in">

<LI STYLE="margin: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">changes
in taxation structure.</FONT></LI>

</UL>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 17.1pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>Because
we intend to conduct business in foreign countries, exchange rates may cause future losses in our international operations.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Because
we expect to develop international sales and distributors, we may derive revenues from any such international operations in currencies
other than the U.S. dollar. In so doing, we may incur currency translation losses due to changes in the values of foreign currencies
and in the value of the U.S. dollar. We cannot predict the effect of exchange rate fluctuations upon future operating results.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>Because
our articles of incorporation and bylaws and Nevada law limit the liability of our officers, directors, and others, shareholders
may have no recourse for acts performed in good faith.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Under our
articles of incorporation, bylaws and Nevada law, each of our officers, directors, employees, attorneys, accountants and agents
are not liable to us or the shareholders for any acts they perform in good faith, or for any non-action or failure to act, except
for acts of fraud, willful misconduct or gross negligence. Our articles and bylaws provide that we will indemnify each of our
officers, directors, employees, attorneys, accountants and agents from any claim, loss, cost, damage liability and expense by
reason of any act undertaken or omitted to be undertaken by them, unless the act performed or omitted to be performed constitutes
fraud, willful misconduct or gross negligence.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 17.1pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>Because
our Series A Stock has liquidation preferences, conversion rights, certain protective voting rights, and other features, any investors
purchasing common stock will be subject to and affected by these rights.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Our board
of directors is authorized to issue up to 5,000,000 shares of preferred stock. On October 19, 2012, we filed a Certificate of
Amendment to our Articles of Incorporation with the Nevada Secretary of State (the &ldquo;Amendment&rdquo;) to designate 2,000,000
shares of Series A Convertible Preferred Stock (&ldquo;Series A Stock&rdquo;). On the same day, we issued 1,428,571 shares of
the Series A Stock at a price per share of $1.05 for total proceeds of $1,500,000.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Each share
of Series A Stock is senior in priority to our common stock and is convertible, at the option of the holder thereof, into such
number of fully-paid and non-assessable shares of common stock that is equal to $1.05 divided by the Conversion Price. The Conversion
Price for the Series A Stock is $0.35, initially, subject to adjustment as provided in the Amendment.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The Series
A Stock will participate in dividends or other distributions when, as, and if declared by our Board of Directors. No dividend
may be declared or paid with respect to the common Stock or any future issuances of preferred stock until equal dividends on the
Series A Stock (on an as-converted basis) have been first declared and paid. If we are liquidated, holders of the Series A Stock
will be entitled to receive, before any distributions are made to the holders of any other series of preferred stock of and the
holders of our common stock, respectively, the original purchase price per share, plus all declared but unpaid dividends on each
share (the &ldquo;Liquidation Preference&rdquo;). Any remaining assets after payment of the Liquidation Preference will be distributed
ratably to the holders of common stock and the Series A Stock, with holders of the Series A Stock participating on an as-converted
basis until such time as the holders of the Series A Stock have received an amount equal to one and thirty-five hundredths times
(1.35X) their original purchase price per share ($1.42). Thereafter, any remaining proceeds will be distributed ratably to the
holders of the common stock. In addition, the Amendment grants the Series A Stock the ability to vote with our common stock and
Series A Stock is entitled to vote the amount of votes the holder would be entitled to on an as converted basis.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The effect
of our Series A Stock will have on the value of our market price and our ability to raise capital is unknown, but could very well
diminish both. Investors should consider that the issuance of Series A Stock could have the effect of delaying, deferring, or
preventing a change in control with us and will adversely affect the rights of holders of our common stock.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Moreover,
our board of directors has the power to establish the dividend rates, liquidation preferences, voting rights, redemption and conversion
terms and privileges with respect to any series of preferred stock. The issuance of any shares of preferred stock having rights
superior to those of the common stock may result in a decrease in the value or market price of the common stock. Holders of preferred
stock may have the right to receive dividends, certain preferences in liquidation and conversion rights. The issuance of preferred
stock could, under certain circumstances, have the effect of delaying, deferring or preventing a change in control of us without
further vote or action by the stockholders and may adversely affect the voting and other rights of the holders of common stock.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><I>&nbsp;</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>Because
we have available a significant number of authorized shares of common stock, we may issue additional shares for a variety of reasons
which will have a dilutive effect on our shareholders, resulting in reduced ownership and decreased voting power, or may result
in a change of control.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Our board
of directors has the authority to issue additional shares of common stock up to the authorized amount of 100,000,000 as stated
in our Articles of Incorporation. Our board of directors may choose to issue some or all of such shares to acquire one or more
businesses or other types of property, or to provide additional financing in the future. The issuance of any such shares may result
in a reduction of the book value or market price of the outstanding shares of our common stock. If we do issue any such additional
shares, such issuance also will cause a reduction in the proportionate ownership and voting power of all other shareholders. Further,
any such issuance may result in a change of control of the company. For instance, if the board of directors decides to issue a
large number of shares of our common stock, the issuance could, if large enough in relation to our presently issued and outstanding
shares, result in a change of control of our company. The board has the power to decide the amount of shares and price of those
shares under Nevada law, and our capital needs may require a large amount of shares to finance our company. So the risk exists
that our current capital structure may change resulting in new shareholders wielding a large percentage of shares.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>Certain
legislation relating to public companies, including the Sarbanes-Oxley Act of 2002, may make it more difficult for us to retain
or attract officers and directors.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The Sarbanes-Oxley
Act of 2002 was enacted in response to public concerns regarding corporate accountability in connection with recent accounting
scandals. The stated goals of the Sarbanes-Oxley Act are to increase corporate responsibility, to provide for enhanced penalties
for accounting and auditing improprieties at publicly traded companies, and to protect investors by improving the accuracy and
reliability of corporate disclosures pursuant to the securities laws. The Sarbanes-Oxley Act generally applies to all companies
that file or are required to file periodic reports with the SEC, under the Securities Exchange Act of 1934. As a public company,
we are required to comply with the Sarbanes-Oxley Act. The enactment of the Sarbanes-Oxley Act of 2002 has resulted in a series
of rules and regulations by the SEC that increase responsibilities and liabilities of directors and executive officers. The perceived
increased personal risk associated with these recent changes may deter qualified individuals from accepting these roles. As a
result, it may be more difficult for us to attract and retain qualified persons to serve on our board of directors or as executive
officers. We continue to evaluate and monitor developments with respect to these rules, and we cannot predict or estimate the
amount of additional costs we may incur or the timing of such costs.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Risks
Relating to Securities</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>Persons
associated with securities offerings, including consultants, may be deemed to be broker dealers, which may expose us to claims
for rescission or damages.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">If our securities
are offered without engaging a registered broker-dealer we may face claims for rescission and other remedies. We may become engaged
in costly litigation to defend these claims, which would lead to increased expenditures for legal fees and divert managements&rsquo;
attention from operating the business. If we could not successfully defend these claims, we may be required to return proceeds
of any affected offering to investors, which would harm our financial condition.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>Our
stock price may be volatile.</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
price of our stock could fluctuate widely in price in response to various factors, many of which are beyond our control, including
the following:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
    <td style="width: 4%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="width: 3%; font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&bull;</B></FONT></td>
    <td style="width: 93%; font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">changes
    in our industry;</FONT></td></tr>
</table>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"></P>

<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
    <td style="width: 4%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="width: 3%; font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&bull;</B></FONT></td>
    <td style="width: 93%; font: 10pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">competitive
    pricing pressures;</FONT></td></tr>
<tr style="vertical-align: top">
    <td><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&bull;</B></FONT></td>
    <td style="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">our ability to
    obtain working capital or project financing;</FONT></td></tr>
</table>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"></P>

<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
    <td style="width: 4%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="width: 3%; font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&bull;</B></FONT></td>
    <td style="width: 93%; font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">additions
    or departures of key personnel;</FONT></td></tr>
</table>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"></P>

<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
    <td style="width: 4%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="width: 3%; font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&bull;</B></FONT></td>
    <td style="width: 93%; font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">limited
    &ldquo;public float&rdquo; in the hands of a small number of persons whose sales or lack of sales could result in positive
    or negative pricing pressure on the market price for our common stock;</FONT></td></tr>
</table>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"></P>

<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
    <td style="width: 4%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="width: 3%; font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&bull;</B></FONT></td>
    <td style="width: 93%; font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">sales
    of our common stock;</FONT></td></tr>
</table>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"></P>

<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
    <td style="width: 4%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="width: 3%; font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&bull;</B></FONT></td>
    <td style="width: 93%; font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">our
    ability to execute our business plan;</FONT></td></tr>
</table>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"></P>

<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
    <td style="width: 4%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="width: 3%; font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&bull;</B></FONT></td>
    <td style="width: 93%; font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">operating
    results that fall below expectations;</FONT></td></tr>
</table>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"></P>

<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
    <td style="width: 4%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="width: 3%; font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&bull;</B></FONT></td>
    <td style="width: 93%; font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">loss
    of any strategic relationship;</FONT></td></tr>
</table>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"></P>

<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
    <td style="width: 4%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="width: 3%; font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&bull;</B></FONT></td>
    <td style="width: 93%; font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">regulatory
    developments;</FONT></td></tr>
</table>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"></P>

<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
    <td style="width: 4%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="width: 3%; font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&bull;</B></FONT></td>
    <td style="width: 93%; font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">economic
    and other external factors; and</FONT></td></tr>
</table>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"></P>

<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
    <td style="width: 4%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="width: 3%; font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&bull;</B></FONT></td>
    <td style="width: 93%; font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">period-to-period
    fluctuations in our financial results.</FONT></td></tr>
</table>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">In addition,
the securities markets have from time to time experienced significant price and volume fluctuations that are unrelated to the
operating performance of particular companies. These market fluctuations may also materially and adversely affect the market price
of our common stock.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>There
is currently a limited trading market for our common stock, and we cannot ensure that a liquid market will be established or maintained.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Only a limited
market has developed for the purchase and sale of our common stock. We cannot predict how liquid the market for our common stock
might become. Therefore, the purchase of our shares must be considered a long-term investment acceptable only for prospective
investors who are willing and can afford to accept and bear the substantial risk of the investment for an indefinite period of
time. Because there is a limited public market for the resale of our shares, a prospective investor may not be able to liquidate
its investment, even in the event of an emergency, and our shares may not be acceptable as collateral for a loan.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Furthermore,
for companies whose securities are quoted on the OTCQB, it is more difficult (1) to obtain accurate quotations, (2) to obtain
coverage for significant news events because major wire services generally do not publish press releases about such companies,
and (3) to obtain needed capital.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>Our
common stock is currently a &ldquo;penny stock,&rdquo; which may make it more difficult for our investors to sell their shares.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Our common
stock is currently and may continue in the future to be subject to the &ldquo;penny stock&rdquo; rules adopted under Section 15(g)
of the Exchange Act. The penny stock rules generally apply to companies whose common stock is not listed on The NASDAQ Stock Market
or other national securities exchange and trades at less than $4.00 per share, other than companies that have had average revenue
of at least $6,000,000 for the last three years or that have tangible net worth of at least $5,000,000 ($2,000,000 if the company
has been operating for three or more years). These rules require, among other things, that brokers who trade penny stock to persons
other than &ldquo;established customers&rdquo; complete certain documentation, make suitability inquiries of investors and provide
investors with certain information concerning trading in the security, including a risk disclosure document and quote information
under certain circumstances. Many brokers have decided not to trade penny stocks because of the requirements of the penny stock
rules and, as a result, the number of broker-dealers willing to act as market makers in such securities is limited. If we remain
subject to the penny stock rules for any significant period, it could have an adverse effect on the market, if any, for our securities.
Since our securities are subject to the penny stock rules, investors may find it more difficult to dispose of our securities.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>Offers
or availability for sale of a substantial number of shares of our common stock may cause the price of our common stock to decline.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">If our stockholders
sell substantial amounts of our common stock in the public market, including shares that are now registered under an effective
registration statement, or upon the expiration of any statutory holding period, under Rule 144, or issued upon the exercise of
outstanding options or warrants, it could create a circumstance commonly referred to as an &ldquo;overhang&rdquo; and in anticipation
of which the market price of our common stock could fall. The existence of an overhang, whether or not sales have occurred or
are occurring, also could make more difficult our ability to raise additional financing through the sale of equity or equity-related
securities in the future at a time and price that we deem reasonable or appropriate.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;<B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><A
NAME="a_003"></A><B>CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">This
prospectus contains forward-looking statements. All statements other than statements of historical facts contained in this prospectus,
including statements regarding our future results of operations and financial position, business strategy and plans and objectives
of management for future operations, are forward-looking statements. These statements involve known and unknown risks, uncertainties
and other factors that may cause our actual results, performance or achievements to be materially different from any future results,
performance or achievements expressed or implied by the forward-looking statements.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">In
some cases, you can identify forward-looking statements by terms such as &quot;may,&quot; &quot;will,&quot; &quot;should,&quot;
&quot;expects,&quot; &quot;plans,&quot; &quot;anticipates,&quot; &quot;could,&quot; &quot;intends,&quot; &quot;target,&quot; &quot;projects,&quot;
&quot;contemplates,&quot; &quot;believes,&quot; &quot;estimates,&quot; &quot;predicts,&quot; &quot;potential&quot; or &quot;continue&quot;
or the negative of these terms or other similar words. These statements are only predictions. We have based these forward-looking
statements largely on our current expectations and projections about future events and financial trends that we believe may affect
our business, financial condition and results of operations. We discuss many of the risks in greater detail under the heading
&quot;Risk Factors.&quot; Also, these forward-looking statements represent our estimates and assumptions only as of the date of
this prospectus. Except as required by law, we assume no obligation to update any forward-looking statements after the date of
this prospectus.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">This
prospectus also contains estimates and other statistical data made by independent parties and by us relating to market size and
growth and other industry data. This data involves a number of assumptions and limitations, and you are cautioned not to give
undue weight to such estimates. We have not independently verified the statistical and other industry data generated by independent
parties and contained in this prospectus and, accordingly, we cannot guarantee their accuracy or completeness. In addition, projections,
assumptions and estimates of our future performance and the future performance of the industries in which we operate are necessarily
subject to a high degree of uncertainty and risk due to a variety of factors, including those described in &ldquo;Risk Factors&rdquo;
and elsewhere in this prospectus. These and other factors could cause results to differ materially from those expressed in the
estimates made by the independent parties and by us.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><A
NAME="a_004"></A><B>USE
OF PROCEEDS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">This
prospectus relates to sale of shares of common stock that may be offered and sold from time to time by the selling stockholder.
We will not receive any proceeds from the sale of shares by the selling stockholder.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><A
NAME="a_005"></A><B>SELLING STOCKHOLDERS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
selling stockholder named in this prospectus (the &quot;Selling Stockholder&quot;) is offering 300,000 shares offered through
this prospectus that were granted to the selling stockholder pursuant to the Consulting Agreement.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
following table provides, as of September 20, 2013, information regarding the beneficial ownership of our common shares held by
each of the selling stockholders, including:</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
    <td style="width: 9%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="width: 3%; font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">1.</FONT></td>
    <td style="width: 88%; font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">the
    total number of common shares owned by each selling stockholder prior to this offering;</FONT></td></tr>
<tr style="vertical-align: top">
    <td><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">2.</FONT></td>
    <td style="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">the total number
    of common shares that are to be offered by each selling stockholder;</FONT></td></tr>
</table>
<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0"></P>

<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
    <td style="width: 9%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="width: 3%; font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">3.</FONT></td>
    <td style="width: 88%; font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">the
    total number of common shares that will be owned by each selling stockholder upon completion of the offering; and</FONT></td></tr>
<tr style="vertical-align: top">
    <td><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">4.</FONT></td>
    <td style="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">the percentage
    owned by each selling stockholder, prior to and upon completion of the offering.</FONT></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Information
with respect to beneficial ownership is based upon information obtained from the selling stockholders. Information with respect
to &quot;Shares Beneficially Owned After the Offering&quot; assumes the sale of all of the common shares offered by this prospectus
and no other purchases or sales of our common shares by the selling stockholders. Except as described below and to our knowledge,
the named selling stockholder beneficially owns and has sole voting and investment power over all common shares or rights to these
common shares.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Because
the selling stockholders may offer all or part of the common shares, which they own pursuant to the offering contemplated by this
<FONT STYLE="background-color: white">reoffer prospectus<B>,</B></FONT> and because its offering is not being underwritten on
a firm commitment basis, no estimate can be given as to the amount of shares that will be held upon termination of this offering.
The common shares currently owned offered by <FONT STYLE="background-color: white">this reoffer prospectus</FONT> may be offered
from time to time by the selling stockholders named below.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>
















<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="width: 60%">
<tr>
    <TD STYLE="vertical-align: bottom; padding-bottom: 1.5pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td colspan="4" style="vertical-align: bottom; border-bottom: black 1.5pt solid; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">SHARES
    BENEFICIALLY OWNED PRIOR TO THIS OFFERING(1)</FONT></td>
    <TD STYLE="vertical-align: bottom; padding-bottom: 1.5pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td colspan="2" style="vertical-align: bottom; padding-bottom: 1.5pt"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">NUMBER
                                                                          OF SHARES</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">BEING</FONT></P></td>
    <TD STYLE="vertical-align: bottom; padding-bottom: 1.5pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td colspan="4" style="vertical-align: bottom; border-bottom: black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">SHARES
                                                                                     BENEFICIALLY OWNED UPON</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">COMPLETION
        OF THE OFFERING(1)</FONT></P></td>
    <TD STYLE="vertical-align: bottom; border-bottom: black 1.5pt solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td></tr>
<tr>
    <TD STYLE="vertical-align: bottom; border-bottom: black 1.5pt solid; font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">NAME</FONT></td>
    <TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td colspan="2" style="vertical-align: bottom; border-bottom: black 1.5pt solid; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">NUMBER</FONT></td>
    <TD STYLE="vertical-align: bottom; padding-bottom: 1.5pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="vertical-align: bottom; border-bottom: black 1.5pt solid; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">PERCENT(2)</FONT></td>
    <TD STYLE="vertical-align: bottom; padding-bottom: 1.5pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td colspan="2" style="vertical-align: bottom; border-bottom: black 1.5pt solid; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">OFFERED</FONT></td>
    <TD STYLE="vertical-align: bottom; padding-bottom: 1.5pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="vertical-align: bottom; border-bottom: black 1.5pt solid; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">NUMBER</FONT></td>
    <TD STYLE="vertical-align: bottom; padding-bottom: 1.5pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td colspan="2" style="vertical-align: bottom; border-bottom: black 1.5pt solid; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">PERCENT(2)</FONT></td>
    <TD STYLE="vertical-align: bottom; border-bottom: black 1.5pt solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td></tr>
<tr>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td colspan="2" style="vertical-align: bottom"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td colspan="2" style="vertical-align: bottom"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td colspan="2" style="vertical-align: bottom"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td></tr>
<tr style="background-color: #CCFFCC">
    <TD STYLE="vertical-align: bottom; width: 31%; font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Bryan
    Clark</FONT></td>
    <TD STYLE="width: 1%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 12%; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">300,000</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 12%; font: 10pt Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">1.0085%</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 12%; font: 10pt Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">299,974</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 12%; font: 10pt Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">26</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 12%; font: 10pt Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">0.0085</FONT></td>
    <TD STYLE="vertical-align: bottom; width: 1%; font: 10pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">%
    </FONT></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
    <td style="width: 5%; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;(1)
    </FONT></td>
    <td style="width: 95%; font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
    number and percentage of shares beneficially owned is determined in accordance with Rule 13d-3 of the Securities Exchange
    Act of 1934, as amended, and the information is not necessarily indicative of beneficial ownership for any other purpose.
    Under such rule, beneficial ownership includes any shares as to which the selling stockholder has sole or shared voting power
    or investment power and also any shares which the selling stockholder has the right to acquire within 60 days.</FONT></td></tr>
<tr>
    <td style="vertical-align: bottom; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(2)</FONT></td>
    <td style="vertical-align: top; font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Based
    upon 29,746,042 shares of common stock issued and outstanding as of September 5, 2013.</FONT></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">S<B>ince
our company does not currently meet the registrant requirements for use of Form S-3, the amount of common shares which may be
resold by means of this <FONT STYLE="background-color: white">reoffer prospectus</FONT> by the selling stockholder, and any other
person with whom he or she is acting in concert for the purpose of selling securities of our company, must not exceed, in any
three month period, the amount specified in Rule 144(e) promulgated under the Securities Act.</B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><A
NAME="a_006"></A><B>PLAN OF DISTRIBUTION</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Timing
of Sales</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The selling
stockholder may offer and sell the shares covered by this prospectus at various times. The selling stockholder will act independently
of our company in making decisions with respect to the timing, manner and size of each sale.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>No Known
Agreements to Resell the Shares</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">To
our knowledge, the selling stockholder has no agreement or understanding, directly or indirectly, with any person to resell the
common shares covered by this prospectus.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Offering
Price</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The sales
price offered by the selling stockholders to the public may be:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
    <td style="width: 12%; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">1.
    </FONT></td>
    <td style="width: 88%; font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">the
    market price prevailing at the time of sale;</FONT></td></tr>
<tr style="vertical-align: top">
    <td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">2.
    </FONT></td>
    <td style="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">a price related
    to such prevailing market price; or</FONT></td></tr>
</table>
<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0"></P>

<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
    <td style="width: 12%; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">3.
    </FONT></td>
    <td style="width: 88%; font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">such
    other price as the selling stockholders determine from time to time.</FONT></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Manner
of Sale</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
common shares may be sold by means of one or more of the following methods:</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
    <TD STYLE="width: 12%; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">1.
    </FONT></td>
    <TD STYLE="width: 88%; font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">a
    block trade in which the broker-dealer so engaged will attempt to sell the common shares as agent, but may position and resell
    a portion of the block as principal to facilitate the transaction;</FONT></td></tr>
<tr style="vertical-align: top">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">2.
    </FONT></td>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Purchases by
    a broker-dealer as principal and resale by that broker-dealer for its account pursuant to this prospectus;</FONT></td></tr>
<tr style="vertical-align: top">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">3.
    </FONT></td>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">ordinary brokerage
    transactions in which the broker solicits purchasers;</FONT></td></tr>
</table>
<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0"></P>

<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
    <TD STYLE="width: 12%; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">4.
    </FONT></td>
    <TD STYLE="width: 88%; font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">through
    options, swaps or derivatives;</FONT></td></tr>
<tr style="vertical-align: top">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">5.
    </FONT></td>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">in transactions
    to cover short sales;</FONT></td></tr>
</table>
<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0"></P>

<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
    <TD STYLE="width: 12%; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">6.
    </FONT></td>
    <TD STYLE="width: 88%; font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">privately
    negotiated transactions; or</FONT></td></tr>
<tr style="vertical-align: top">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">7.
    </FONT></td>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">in a combination
    of any of the above methods.</FONT></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
selling stockholder may sell his common shares directly to purchasers or may use brokers, dealers, underwriters or agents to sell
their common shares. Brokers or dealers engaged by the selling stockholder may arrange for other brokers or dealers to participate.
Brokers or dealers may receive commissions, discounts or concessions from the selling stockholders, or, if any such broker-dealer
acts as agent for the purchaser of common shares, from the purchaser in amounts to be negotiated immediately prior to the sale.
The compensation received by brokers or dealers may, but is not expected to, exceed that which is customary for the types of transactions
involved.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Broker-dealers
may agree with a selling stockholder to sell a specified number of common shares at a stipulated price per common share, and,
to the extent the broker-dealer is unable to do so acting as agent for a selling stockholder, to purchase as principal any unsold
common shares at the price required to fulfill the broker-dealer commitment to the selling stockholder.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Broker-dealers
who acquire common shares as principal may thereafter resell the common shares from time to time in transactions, which may involve
block transactions and sales to and through other broker-dealers, including transactions of the nature described above, in the
over-the-counter market or otherwise at prices and on terms then prevailing at the time of sale, at prices then related to the
then-current market price or in negotiated transactions. In connection with resales of the common shares, broker-dealers may pay
to or receive from the purchasers of shares commissions as described above.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">If
our selling stockholder enters into arrangements with brokers or dealers, as described above, we are obligated to file a post-effective
amendment to this registration statement disclosing such arrangements, including the names of any broker-dealers acting as underwriters.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
selling stockholder and any broker-dealers or agents that participate with the selling stockholder in the sale of the common shares
may be deemed to be &quot;underwriters&quot; within the meaning of the Securities Act. In that event, any commissions received
by broker-dealers or agents and any profit on the resale of the common shares purchased by them may be deemed to be underwriting
commissions or discounts under the Securities Act.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">We
will make copies of this prospectus available to the selling stockholder for the purpose of satisfying the prospectus delivery
requirements of the Securities Act.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Sales
Pursuant to Rule 144</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Any
common shares covered by this prospectus which qualify for sale pursuant to Rule 144 under the Securities Act may be sold under
Rule 144 rather than pursuant to this prospectus.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Accordingly,
during such times as the selling stockholder may be deemed to be engaged in a distribution of the common stock, and therefore
be considered to be an underwriter, the selling stockholder must comply with applicable law and, among other things:</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
    <TD STYLE="width: 12%; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">1.
    </FONT></td>
    <TD STYLE="width: 88%; font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">may
    not engage in any stabilization activities in connection with our common stock;</FONT></td></tr>
<tr style="vertical-align: top">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">2.
    </FONT></td>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">may not cover
    short sales by purchasing shares while the distribution is taking place; and</FONT></td></tr>
</table>
<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0"></P>

<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
    <TD STYLE="width: 12%; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">3.
    </FONT></td>
    <TD STYLE="width: 88%; font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">may
    not bid for or purchase any of our securities or attempt to induce any person to purchase any of our securities other than
    as permitted under the Exchange Act.</FONT></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Penny
Stock Rules</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The SEC
has adopted regulations which generally define &quot;penny stock&quot; to be any equity security that has a market price (as defined)
of less than $4.00 per share or an exercise price of less than $4.00 per share, subject to certain exceptions. Our securities
are covered by the penny stock rules, which impose additional sales practice requirements on broker-dealers who sell to persons
other than established customers and &quot;institutional accredited investors.&quot; The term &quot;institutional accredited investor&quot;
refers generally to those accredited investors who are not natural persons and fall into one of the categories of accredited investor
specified in subparagraphs (1), (2), (3), (7) or (8) of Rule 501 of Regulation D promulgated under the Securities Act, including
institutions with assets in excess of $5,000,000.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The penny
stock rules require a broker-dealer, prior to a transaction in a penny stock not otherwise exempt from the rules, to deliver a
standardized risk disclosure document in a form required by the Securities and Exchange Commission, obtain from the customer a
signed and dated acknowledgement of receipt of the disclosure document and to wait two business days before effecting the transaction.
The risk disclosure document provides information about penny stocks and the nature and level of risks in the penny stock market.
The broker-dealer also must provide the customer with current bid and offer quotations for the penny stock, the compensation of
the broker-dealer and its salesperson in the transaction and monthly account statements showing the market value of each penny
stock held in the customer's account.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The bid
and offer quotations, and the broker-dealer and salesperson compensation information, must be given to the customer orally or
in writing prior to effecting the transaction and must be given to the customer in writing before or with the customer's confirmation.
In addition, the penny stock rules require that prior to a transaction in a penny stock not otherwise exempt from these rules,
the broker-dealer must make a special written determination that the penny stock is a suitable investment for the purchaser and
receive the purchaser's written agreement to the transaction.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">These disclosure
requirements may have the effect of reducing the level of trading activity in the secondary market for the stock that is subject
to these penny stock rules. Consequently, these penny stock rules may affect the ability of broker-dealers to trade our securities.
We believe that the penny stock rules discourage investor interest in and limit the marketability of our common stock.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>State
Securities Laws</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Under the
securities laws of some states, the common shares may be sold in such states only through registered or licensed brokers or dealers.
In addition, in some states the common shares may not be sold unless the shares have been registered or qualified for sale in
the state or an exemption from registration or qualification is available and is complied with.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Expenses
of Registration</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">We are bearing
all costs relating to the registration of the common stock. These expenses are estimated to be $5,000, including, but not limited
to, legal, accounting, printing and mailing fees. The selling stockholders, however, will pay any commissions or other fees payable
to brokers or dealers in connection with any sale of the common stock.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><A
NAME="a_007"></A><B>LEGAL MATTERS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
validity of the common stock has been passed upon, for us, by Cane Clark LLP. A principal member of Cane Clark LLP has received
common stock of the Company in payment of compensation for legal services. Bryan Clark, the selling stockholders, is a partner
of Cane Clark LLP.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><A
NAME="a_008"></A><B>EXPERTS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
financial statements of Xzeres Corp. as of February 28, 2013 and February 29, 2012, and for each of the two years in the period
ended February 28, 2013 and February 29, 2012, have been incorporated by reference herein and in the registration statement in
reliance upon the report of Silberstein Ungar, PLLC, an independent registered public accounting firm, upon the authority of said
firm as an expert in accounting and auditing.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><A
NAME="a_009"></A><B>INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The Securities
and Exchange Commission (&ldquo;SEC&rdquo;) allows us to incorporate by reference certain of our publicly filed documents into
this prospectus, which means that such information is considered part of this prospectus. Information that we file with the SEC
subsequent to the date of this prospectus will automatically update and supersede this information. We incorporate by reference
the documents listed below and any future filings made by us with the SEC pursuant to Section 13(a), 13(c), 14 or 15(d) of the
Securities Exchange Act of 1934, as amended, until the selling stockholders have sold all of the shares offered hereby or such
shares have been deregistered.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The following
documents filed by us with the SEC are incorporated herein by reference:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
    <td style="width: 24px"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="width: 24px; font: 10pt Calibri, Helvetica, Sans-Serif">&bull;</td>
    <td style="font: 10pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Reference is
    made to our report on Form10-Q filed with the SEC on September 10, 2013, which is hereby incorporated by reference.</FONT></td></tr>
<tr style="vertical-align: top">
    <td><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="font: 11pt Calibri, Helvetica, Sans-Serif">&bull;</td>
    <td style="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Reference is
    made to our report on Form10-K filed with the SEC on August 5, 2013, which is hereby incorporated by reference.</FONT></td></tr>
</table>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"></P>

<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
    <td style="width: 24px"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="width: 24px; font: 11pt Calibri, Helvetica, Sans-Serif">&bull;</td>
    <td style="font: 10pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Reference is
    made to our report on Form 8-K filed with the SEC on April 24, 2013, which is hereby incorporated by reference.</FONT></td></tr>
<tr style="vertical-align: top">
    <td><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="font: 11pt Calibri, Helvetica, Sans-Serif">&bull;</td>
    <td style="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Reference is
    made to our report on Form 8-K filed with the SEC on April 5, 2013, which is hereby incorporated by reference.</FONT></td></tr>
</table>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"></P>

<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
    <td style="width: 24px"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="width: 24px; font: 11pt Calibri, Helvetica, Sans-Serif">&bull;</td>
    <td style="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Reference is
    made to our report on Form 8-K filed with the SEC on February 5, 2013, which is hereby incorporated by reference.</FONT></td></tr>
</table>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"></P>

<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
    <td style="width: 24px"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="width: 24px; font: 11pt Calibri, Helvetica, Sans-Serif">&bull;</td>
    <td style="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Reference is
    made to our report on Form 8-K filed with the SEC on December 17, 2012, which is hereby incorporated by reference.</FONT></td></tr>
</table>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"></P>

<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
    <td style="width: 24px"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="width: 24px; font: 11pt Calibri, Helvetica, Sans-Serif">&bull;<FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></td>
    <td style="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Reference is
    made to our report on Form 8-K filed with the SEC on November 21, 2012, which is hereby incorporated by reference.</FONT></td></tr>
</table>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"></P>

<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
    <td style="width: 24px"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="width: 24px; font: 11pt Calibri, Helvetica, Sans-Serif">&bull;</td>
    <td style="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Reference is
    made to our report on Form 8-K filed with the SEC on October 25, 2012, which is hereby incorporated by reference.</FONT></td></tr>
</table>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"></P>

<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
    <td style="width: 24px"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="width: 24px; font: 11pt Calibri, Helvetica, Sans-Serif">&bull;</td>
    <td style="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Reference is
    made to our report on Form 8-K filed with the SEC on August 9, 2012, which is hereby incorporated by reference.</FONT></td></tr>
</table>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"></P>

<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
    <td style="width: 24px"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="width: 24px; font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT>&bull;</td>
    <td style="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The description
    of our common stock in our Registration Statement on Form 8-A, filed with the SEC on June 21, 2012, which is hereby incorporated
    by reference.</FONT></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">We
will provide without charge to each person to whom a copy of this prospectus has been delivered, on written or oral request, a
copy of any or all of the documents incorporated by reference in this prospectus, other than exhibits to such documents. Written
or oral requests for such copies should be directed to Steven Shum at the Company.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><A
NAME="a_010"></A><B>DISCLOSURE OF COMMISSION POSITION ON INDEMNIFICATION</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>FOR
SECURITIES ACT LIABILITIES</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Section
145 of the Nevada General Corporation Law, as amended, authorizes the Registrant to indemnify any director or officer under certain
prescribed circumstances and subject to certain limitations against certain costs and expenses, including attorney's fees actually
and reasonably incurred in connection with any action, suit or proceeding, whether civil, criminal, administrative or investigative,
to which a person is a party by reason of being a director or officer of Xzeres Corp. if it is determined that such person acted
in accordance with the applicable standard of conduct set forth in such statutory provisions. The Registrant&rsquo;s Certificate
of Incorporation contains provisions relating to the indemnification of director and officers and our By-Laws extend such indemnities
to the full extent permitted by Nevada law. The Registrant may also purchase and maintain insurance for the benefit of any director
or officer, which may cover claims for which we could not indemnify such persons.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">In
the event that a claim for indemnification against such liabilities, other than the payment by the Registrant of expenses incurred
or paid by one of the Registrant&rsquo;s directors, officers, or controlling persons in the successful defense of any action,
suit or proceeding, is asserted by one of the Registrant&rsquo;s directors, officers, or controlling person in connection with
the securities being registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling
precedent, submit to a court of appropriate jurisdiction the question whether such indemnification is against public policy as
expressed in the Securities Act of 1933, as amended, and it will be governed by the final adjudication of such issue.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><A
NAME="a_011"></A><B>ADDITIONAL INFORMATION AVAILABLE TO YOU</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">This prospectus
is part of a Registration Statement on Form S-8 that we filed with the SEC. Certain information in the Registration Statement
has been omitted from this prospectus in accordance with the rules of the SEC. We file annual, quarterly and special reports,
proxy statements and other information with the SEC. You can inspect and copy the Registration Statement as well as reports, proxy
statements and other information we have filed with the SEC at the public reference room maintained by the SEC at 100 F Street
N.E. Washington, D.C. 20549. You can obtain copies from the public reference room of the SEC at 100 F Street N.E. Washington,
D.C. 20549, upon payment of certain fees. You can call the SEC at 1-800-732-0330 for further information about the public reference
room. We are also required to file electronic versions of these documents with the SEC, which may be accessed through the SEC's
World Wide Web site at http://www.sec.gov.</FONT></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>XZERES
CORP.</B></FONT></P>


















<HR SIZE="2" NOSHADE ALIGN="CENTER" STYLE="width: 15%; color: black">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">300,000
SHARES OF COMMON STOCK</FONT></P>

<HR SIZE="2" NOSHADE ALIGN="CENTER" STYLE="width: 15%; color: black">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">PROSPECTUS</FONT></P>

<HR SIZE="2" NOSHADE ALIGN="CENTER" STYLE="width: 15%; color: black">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">September
20, 2013</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>PART
II</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>INFORMATION
NOT REQUIRED IN THE PROSPECUTS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Item
3. Incorporation of Documents by Reference.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The Registrant
hereby incorporates by reference into this Registration Statement the documents listed below. In addition, all documents subsequently
filed pursuant to Sections 13(a), 13(c), 14 and 15(d) of the Securities Exchange Act of 1934 (the &ldquo;Exchange Act&rdquo;),
prior to the filing of a post-effective amendment which indicates that all securities offered have been sold or which deregisters
all securities then remaining unsold, shall be deemed to be incorporated by reference into this Registration Statement and to
be a part hereof from the date of filing of such documents:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
    <td style="width: 24px"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="width: 24px; font: 10pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#183;</FONT></td>
    <td style="font: 10pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Reference is
    made to our report on Form10-Q filed with the SEC on September 10, 2013, which is hereby incorporated by reference.</FONT></td></tr>
<tr style="vertical-align: top">
    <td><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="font: 10pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#183;</FONT></td>
    <td style="font: 10pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Reference is
    made to our report on Form10-K filed with the SEC on August 5, 2013, which is hereby incorporated by reference.</FONT></td></tr>
</table>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"></P>

<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
    <td style="width: 24px"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="width: 24px; font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#183;</FONT></td>
    <td style="font: 10pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Reference is
    made to our report on Form 8-K filed with the SEC on April 24, 2013, which is hereby incorporated by reference.</FONT></td></tr>
<tr style="vertical-align: top">
    <td><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#183;</FONT></td>
    <td style="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Reference is
    made to our report on Form 8-K filed with the SEC on April 5, 2013, which is hereby incorporated by reference.</FONT></td></tr>
</table>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"></P>

<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
    <td style="width: 24px"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="width: 24px; font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#183;</FONT></td>
    <td style="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Reference is
    made to our report on Form 8-K filed with the SEC on February 5, 2013, which is hereby incorporated by reference.</FONT></td></tr>
</table>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"></P>

<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
    <td style="width: 24px"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="width: 24px; font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#183;</FONT></td>
    <td style="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Reference is
    made to our report on Form 8-K filed with the SEC on December 17, 2012, which is hereby incorporated by reference.</FONT></td></tr>
</table>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"></P>

<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
    <td style="width: 24px"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="width: 24px; font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#183;</FONT></td>
    <td style="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Reference is
    made to our report on Form 8-K filed with the SEC on November 21, 2012, which is hereby incorporated by reference.</FONT></td></tr>
</table>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"></P>

<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
    <td style="width: 24px"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="width: 24px; font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#183;</FONT></td>
    <td style="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Reference is
    made to our report on Form 8-K filed with the SEC on October 25, 2012, which is hereby incorporated by reference.</FONT></td></tr>
</table>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"></P>

<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
    <td style="width: 24px"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="width: 24px; font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#183;</FONT></td>
    <td style="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Reference is
    made to our report on Form 8-K filed with the SEC on August 9, 2012, which is hereby incorporated by reference.</FONT></td></tr>
</table>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"></P>

<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
    <td style="width: 24px"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="width: 24px; font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#183;</FONT></td>
    <td style="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The description
    of our common stock in our Registration Statement on Form 8-A, filed with the SEC on June 21, 2012, which is hereby incorporated
    by reference.</FONT></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Item
4. Description of Securities.</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Not applicable.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Item
5. Interests of Named Experts and Counsel.</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">No expert
or counsel named in this Registration Statement as having prepared or certified any part of this Registration Statement or having
given an opinion upon the validity of the securities being registered or upon other legal matters in connection with the registration
or offering of the common stock was employed on a contingency basis or had, or is to receive, in connection with the offering,
a substantial interest, directly or indirectly, in the registrant or any of its parents or subsidiaries, provided that a principal
member of Cane Clark, LLP has received up to 300,000 shares of the Company&rsquo;s common stock being registered under this registration
statement to be issued as compensation for legal services.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Item
6. Indemnification of Directors and Officers.</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Section
145 of the Nevada General Corporation Law, as amended, authorizes the Registrant to indemnify any director or officer under certain
prescribed circumstances and subject to certain limitations against certain costs and expenses, including attorney's fees actually
and reasonably incurred in connection with any action, suit or proceeding, whether civil, criminal, administrative or investigative,
to which a person is a party by reason of being a director or officer of Xzeres if it is determined that such person acted in
accordance with the applicable standard of conduct set forth in such statutory provisions. The Registrant&rsquo;s Certificate
of Incorporation contains provisions relating to the indemnification of director and officers and our By-Laws extend such indemnities
to the full extent permitted by Nevada law. The Registrant may also purchase and maintain insurance for the benefit of any director
or officer, which may cover claims for which we could not indemnify such persons.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Insofar
as indemnification for liabilities arising under the Securities Act of 1933, as amended, may be permitted to the Registrant&rsquo;s
directors, officers and controlling persons pursuant to the provisions above, or otherwise, the Registrant has been advised that
in the opinion of the Securities and Exchange Commission, such indemnification is against public policy as expressed in the Securities
Act of 1933, as amended, and is, therefore, unenforceable.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">In the event
that a claim for indemnification against such liabilities, other than the payment by the Registrant of expenses incurred or paid
by one of the Registrant&rsquo;s directors, officers, or controlling persons in the successful defense of any action, suit or
proceeding, is asserted by one of the Registrant&rsquo;s directors, officers, or controlling person in connection with the securities
being registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question whether such indemnification is against public policy as expressed
in the Securities Act of 1933, as amended, and it will be governed by the final adjudication of such issue.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Item
7. Exemption from Registration Claimed.</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Up to 300,000
shares of common stock being registered pursuant to this Registration Statement may be issued under the Consulting Agreement.
The 300,000 shares already issued were issued pursuant to the exemption from registration provided by Section 4(2) of the Securities
Act.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Item
8. Exhibits.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
    <TD STYLE="width: 10%; font: 10pt Calibri, Helvetica, Sans-Serif; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Exhibit
    Number</B></FONT></td>
    <TD STYLE="width: 87%; font: 10pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Description</B></FONT></td></tr>
<tr style="vertical-align: top">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">5.1</FONT></td>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><A HREF="ex5_1.htm">Opinion
    of Cane Clark LLP</A></FONT></td></tr>
<tr style="vertical-align: top">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">10.1</FONT></td>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><A HREF="ex10_1.htm">Consulting
    Agreement between Xzeres Corp. and Bryan Clark, dated April 1, 2013</A></FONT></td></tr>
<tr style="vertical-align: top">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">23.1</FONT></td>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Consent of Silberstein
    Ungar, PLLC</FONT></td></tr>
<tr style="vertical-align: top">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">23.2</FONT></td>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Consent of Cane
    Clark LLP (included in Exhibit 5.1)</FONT></td></tr>
<tr style="vertical-align: top">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">24.1</FONT></td>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Powers of Attorney
    (included on signature page)</FONT></td></tr>
</table>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Item
9. Undertakings.</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(a) The
undersigned Registrant hereby undertakes:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">1)&#9;To
file, during any period in which offers or sales are being made, a post-effective amendment to this Registration Statement:</FONT></P>

<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(i)&#9;to
include any prospectus required by Section 10(a)(3) of the Securities Act of 1933;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#9;(ii)&#9;to
reflect in the prospectus any facts or events arising after the effective date of the Registration Statement (or the most recent
post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set
forth in the Registration Statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if
the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high
end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule
424(b) if, in the aggregate, the changes in volume and price represent no more than 20% change in the maximum aggregate offering
price set forth in the &quot;Calculation of Registration Fee&quot; table in the effective registration statement;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#9;&#9;(iii)&#9;to
include any material information with respect to the plan of distribution not previously disclosed in the Registration Statement
or any material change to such information in the Registration Statement.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Provided,
however, that paragraphs (a)(1)(i) and (a)(1)(ii) do not apply if this Registration Statement is on Form S-8, and the information
required to be included in a post-effective amendment by those paragraphs is contained in reports filed with or furnished to the
Commission by the Registrant pursuant to Section 13 or Section 15(d) of the Exchange Act of 1934 that are incorporated by reference
in this Registration Statement.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">2)&#9;That,
for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed
to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time
shall be deemed to be the initial bona fide offering thereof.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">3)&#9;To
remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at
the termination of the offering.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">4)&#9;The
undersigned Registrant hereby undertakes that, for purposes of determining any liability under the Securities Act of 1933, each
filing of the Registrant&rsquo;s annual report pursuant to Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934
(and, where applicable, each filing of an employee benefit plan&rsquo;s annual report pursuant to Section 15(d) of the Securities
Exchange Act of 1934) that is incorporated by reference in the Registration Statement shall be deemed to be a new registration
statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the
initial bona fide offering thereof.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">5)&#9;Insofar
as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling
persons of the Registrant pursuant to the foregoing provisions or otherwise, the Registrant has been advised that in the opinion
of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act of
1933, and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the
payment by the Registrant of expenses incurred or paid by a director, officer or controlling person of the Registrant in the successful
defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the
securities being registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling
precedent, submit to a court of appropriate jurisdiction the question of whether such indemnification by it is against public
policy as expressed in the Securities Act of 1933 and will be governed by the final adjudication of such issue.II-3</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>SIGNATURES</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Pursuant
to the requirements of the Securities Act of 1933, the Registrant certifies that it has reasonable grounds to believe that it
meets all of the requirements for filing on Form S-8 and has duly caused this registration statement to be signed on its behalf
by the undersigned, thereunto duly authorized, in Wilsonville, OR, on September 20, 2013.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top; background-color: white">
    <td style="width: 52%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="width: 2%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="width: 35%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="width: 11%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td></tr>
<tr style="vertical-align: top; background-color: white">
    <td><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td colspan="2" style="font: 10pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>XZERES
    CORP.</B></FONT></td>
    <td><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td></tr>
<tr style="vertical-align: top; background-color: white">
    <td><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td></tr>
<tr style="vertical-align: top; background-color: white">
    <td style="padding-bottom: 1.5pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1.5pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">By:
    </FONT></td>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><U>/s/ Frank
    Greco</U></FONT></td>
    <td style="padding-bottom: 1.5pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td></tr>
<tr style="vertical-align: top; background-color: white">
    <td colspan="2"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Frank Greco</FONT></td>
    <td><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td></tr>
<tr style="vertical-align: top; background-color: white">
    <td colspan="2"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Chief Executive
    Officer, Principal Executive Officer and Director</FONT></td>
    <td><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B>&nbsp;</FONT></P>

<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top; background-color: white">
    <td style="width: 52%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="width: 2%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="width: 35%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="width: 11%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td></tr>
<tr style="vertical-align: top; background-color: white">
    <td><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td colspan="2" style="font: 10pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>XZERES
    CORP.</B></FONT></td>
    <td><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td></tr>
<tr style="vertical-align: top; background-color: white">
    <td><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td></tr>
<tr style="vertical-align: top; background-color: white">
    <td style="padding-bottom: 1.5pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1.5pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">By:
    </FONT></td>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><U>/s/ Steven
    Shum</U></FONT></td>
    <td style="padding-bottom: 1.5pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td></tr>
<tr style="vertical-align: top; background-color: white">
    <td colspan="2"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Steven Shum</FONT></td>
    <td><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td></tr>
<tr style="vertical-align: top; background-color: white">
    <td colspan="2"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Chief Financial
    Officer, Principal Financial Officer, Principal Accounting Officer and Director</FONT></td>
    <td><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>


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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>POWER
OF ATTORNEY</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Each
person whose signature appears below hereby constitutes and appoints Steven Shum, his or her true and lawful attorney-in-fact
and agents with full power of substitution and resubstitution, for him and in his name, place, and stead, in any and all capacities
to sign any and all amendments (including post-effective amendments) and additions to this Registration Statement, and to file
the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission,
and hereby grants to such attorney-in-fact and agents full power and authority to do and perform each and every act and thing
requisite and necessary to be done, as fully to all intents and purposes as he or she might or could do in person, hereby ratifying
and confirming all that said attorney-in-fact and agents or his substitute or substitutes may lawfully do or cause to be done
by virtue hereof.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Pursuant
to the requirements of the Securities Act of 1933, this registration statement has been signed by the following persons in the
capacities and on the date indicated:</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%">
<tr style="vertical-align: top; background-color: white">
    <TD STYLE="padding-bottom: 1.5pt; width: 10%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1.5pt; width: 10%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">By:
    </FONT></td>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; width: 70%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><U>/s/
    Frank Greco</U></FONT></td>
    <TD STYLE="padding-bottom: 1.5pt; width: 10%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td></tr>
<tr style="vertical-align: top; background-color: white">
    <td colspan="2"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Frank Greco</FONT></td>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td></tr>
<tr style="vertical-align: top; background-color: white">
    <td colspan="2"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Chief Executive
    Officer, Principal Executive Officer and Director</FONT></td>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B>&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%">
<tr style="vertical-align: top; background-color: white">
    <TD STYLE="padding-bottom: 1.5pt; width: 10%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1.5pt; width: 10%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">By:
    </FONT></td>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; width: 70%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><U>/s/
    Steven Shum</U></FONT></td>
    <TD STYLE="padding-bottom: 1.5pt; width: 10%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td></tr>
<tr style="vertical-align: top; background-color: white">
    <td colspan="2"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Steven Shum</FONT></td>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td></tr>
<tr style="vertical-align: top; background-color: white">
    <td colspan="2"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Chief Financial
    Officer, Principal Financial Officer, Principal Accounting Officer and Director</FONT></td>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td></tr>
</table>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%">
<tr style="vertical-align: top; background-color: white">
    <TD STYLE="padding-bottom: 1.5pt; width: 10%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1.5pt; width: 10%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">By:
    </FONT></td>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; width: 70%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><U>/s/
    William Hagler</U></FONT></td>
    <TD STYLE="padding-bottom: 1.5pt; width: 10%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td></tr>
<tr style="vertical-align: top; background-color: white">
    <td colspan="2"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">William Hagler</FONT></td>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td></tr>
<tr style="vertical-align: top; background-color: white">
    <td colspan="2"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Director</FONT></td>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%">
<tr style="vertical-align: top; background-color: white">
    <TD STYLE="padding-bottom: 1.5pt; width: 10%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1.5pt; width: 10%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">By:
    </FONT></td>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; width: 70%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><U>/s/
    Robert N. Garff</U></FONT></td>
    <TD STYLE="padding-bottom: 1.5pt; width: 10%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td></tr>
<tr style="vertical-align: top; background-color: white">
    <td colspan="2"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Robert N. Garff</FONT></td>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td></tr>
<tr style="vertical-align: top; background-color: white">
    <td colspan="2"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Director</FONT></td>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">EXHIBIT
INDEX</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: left"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: left"></P>

<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
    <TD STYLE="width: 10%; font: 10pt Calibri, Helvetica, Sans-Serif; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><U>Exhibit
    Number</U></B></FONT></td>
    <TD STYLE="width: 87%; font: 10pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><U>Description</U></B></FONT></td></tr>
<tr style="vertical-align: top">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">5.1</FONT></td>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Opinion of Cane
    Clark LLP</FONT></td></tr>
<tr style="vertical-align: top">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">10.1</FONT></td>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Consulting Agreement
    between Xzeres Corp. and Bryan Clark, dated April 1, 2013</FONT></td></tr>
<tr style="vertical-align: top">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">23.1</FONT></td>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Consent of Silberstein
    Ungar, PLLC</FONT></td></tr>
<tr style="vertical-align: top">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">23.2</FONT></td>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Consent of Cane
    Clark LLP (included in Exhibit 5.1)</FONT></td></tr>
<tr style="vertical-align: top">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">24.1</FONT></td>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Powers of Attorney
    (included on signature page)</FONT></td></tr>
</table>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: left"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>



<P STYLE="margin: 0"></P>

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</HTML>
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{"company-data": {"conformed-name": "XZERES Corp.", "cik": "0001084597", "assigned-sic": "3510", "irs-number": "742329327", "state-of-incorporation": "NV", "fiscal-year-end": "0229"}, "filing-values": {"form-type": "S-8", "act": "33", "file-number": "333-191290", "film-number": "131108378"}, "business-address": {"street1": "9025 SW HILLMAN COURT, SUITE 3126", "city": "WILSONVILLE", "state": "OR", "zip": "97070", "phone": "503-388-7350"}, "mail-address": {"street1": "9025 SW HILLMAN COURT, SUITE 3126", "city": "WILSONVILLE", "state": "OR", "zip": "97070"}, "former-company": [{"former-conformed-name": "Xzeres Wind Corp.", "date-changed": "20100512"}, {"former-conformed-name": "Cascade Wind Corp.", "date-changed": "20100406"}, {"former-conformed-name": "Cascade Wind Corp., Inc.", "date-changed": "20081203"}]}
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
S-8
REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OF 1933
Xzeres
Corp
.
(Exact
name of registrant as specified in its charter)
Nevada
(State
        or other jurisdiction of
incorporation
        or organization)
74-2329327
(I.R.S.
        Employer
Identification
        No.)
9025
SW Hillman Court, Suite 3126
Wilsonville,
OR 97070
(Address
of principal executive offices) (Zip Code)
Consulting
Agreement between Xzeres Corp. and Bryan Clark
(Full
title of the plans)
Nevada Agency and Transfer Company
50 West Liberty St., Reno, NV 89501
(Name
and Address of agent for service)
503-388-7350
(Telephone
number, including area code, of agent for service)
With
a copy to:
Cane
Clark, LLP
3273
E. Warm Springs, Rd.
Las
Vegas, NV 89120
Phone
(702) 312-6255
Fax
(702) 940-7100
Indicate
by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller
reporting company. See definitions of "large accelerated filer," "accelerated filer" and "smaller
reporting company" in Rule 12b-2 of the Exchange Act. (Check one):
Large
accelerated filer ¨ Accelerated filer ¨ Non-accelerated filer ¨
Smaller
Reporting Company þ
CALCULATION
OF REGISTRATION FEE
Title
                                                                                     of Securities to be Registered
Amount
    to be Registered
Proposed
    Maximum Offering Price Per Share
Proposed
    Maximum Aggregate Offering Price
Amount
                                                                                     of
Registration
        Fee
Common
    Stock, $.001 par value
300,000
    (1)
$0.56
    (2)
$168,000
$22.92
(1)
Represents
    shares of common stock issued pursuant to the Consulting Agreement between Xzeres Corp. and Bryan Clark.
(2)
Estimated solely
    for purposes of calculating the registration fee in accordance with Rule 457(c) of the Securities Act of 1933, as amended,
    using the last sale price reported on the OTCQB on September 18, 2013.
EXPLANATORY
NOTE
This
Registration Statement is being filed by Xzeres Corp. (the "Company") in accordance with the requirements of Form
S-8 under the Securities Act of 1933, as amended (the "Securities Act"), in order to register 300,000 shares of the
Company's common stock, par value $.001 per share, the amount of shares issuable under the Company's Consulting Agreement
with Bryan Clark (the "Consultant"), which agreement is filed as an exhibit to this Registration Statement (the "Consulting
Agreement").
This
Form S-8 includes a
reoffer prospectus
prepared in accordance with Part I of Form
S-3 under the Securities Act. The
reoffer prospectus
may be used for reoffer and
resales of restricted securities (as such term is defined in General Instruction C to Form S-8) acquired pursuant to the Consulting
Agreement.
PART
I
INFORMATION
REQUIRED IN THE SECTION 10(a) PROSPECTUS
Item
    1.
Plan Information.
The
Company will provide the Consultant with documents that contain information related to the Consulting Agreement, and other information
including, but not limited to, the disclosure required by Item 1 of Form S-8, which information is not required to be and are
not being filed as a part of this Registration Statement on Form S-8 (the "Registration Statement") or as prospectuses
or prospectus supplements pursuant to Rule 424 under the Securities Act. The foregoing information and the documents incorporated
by reference in response to Item 3 of Part II of this Registration Statement, taken together, constitute a prospectus that meets
the requirements of Section 10(a) of the Securities Act. A Section 10(a) prospectus will be given to the Consultant who receives
common stock covered by this Registration Statement, in accordance with Rule 428(b)(1) under the Securities Act.
Item
    2.
Registrant
    Information and Employee Plan Annual Information.
We
will provide to each Consultant a written statement advising of the availability of documents incorporated by reference in Item
3 of Part II of this Registration Statement (which documents are incorporated by reference in this Section 10(a) prospectus) and
of documents required to be delivered pursuant to Rule 428(b) under the Securities Act without charge and upon written or oral
request by contacting:
Xzeres
Corp.
Attn:
Steven Shum
9025
SW Hillman Court, Suite 3126
Wilsonville,
OR 97070
503-388-7350
2
REOFFER
PROSPECTUS
Xzeres
Corp.
300,000
Shares of
Common
Stock
This
reoffer prospectus
relates to the sale of up to 300,000 shares of our common stock,
$.001 par value per share that may be offered and resold from time to time by the selling stockholder identified in this prospectus
for his own account issuable pursuant to the Consulting Agreement. It is anticipated that the selling stockholder will offer common
shares for sale from time to time in one or more transactions on the OTCQB, or such other stock market or exchange on which our
common stock may be listed or quoted, in negotiated transactions or otherwise, at market prices prevailing at the time of the
sale or at prices otherwise negotiated (see "Plan of Distribution" starting on page 18 of this prospectus). We will
receive no part of the proceeds from sales made under this
reoffer prospectus.
The
selling stockholder will bear all sales commissions and similar expenses. Any other expenses incurred by us in connection with
the registration and offering and not borne by the selling stockholder will be borne by us.
The
shares of common stock have been issued pursuant to the Consulting Agreement.
This
reoffer prospectus
has been prepared for the purposes of registering the common shares
under the Securities Act to allow for future sales by selling stockholders on a continuous or delayed basis to the public without
restriction.
Investing
in our common stock involves risks. See "Risk Factors" beginning on page 6 of this
reoffer
prospectus.
These are speculative securities.
Since
our company does not currently meet the registrant requirements for use of Form S-3, the amount of common shares which may be
resold by means of this
reoffer prospectus
by the selling stockholder, and any other
person with whom he or she is acting in concert for the purpose of selling securities of our company, must not exceed, in any
three month period, the amount specified in Rule 144(e) promulgated under the Securities Act.
Our
common stock is quoted on the OTCQB under the symbol "XPWR" and the last reported sale price of our common stock on
September 18, 2013 was $0.56 per share.
NEITHER
THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED OF THESE SECURITIES OR
DETERMINED IF THIS PROSPECTUS IS TRUTHFUL OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
The
date of this prospectus is September 20, 2013
3
XZERES
CORP.
TABLE
OF CONTENTS
Page
Prospectus
    Summary
5
Risk
    Factors
6
Cautionary
    Note Regarding Forward-Looking Statements
15
Use
    of Proceeds
16
Selling
    Stockholders
16
Plan
    of Distribution
17
Legal
    Matters
19
Experts
19
Incorporation
    of Certain Documents by Reference
20
Disclosure
    of Commission Position on Indemnification For Securities Act Liabilities
21
Additional
    Information Available to You
21
NO
PERSON HAS BEEN AUTHORIZED TO GIVE ANY INFORMATION OR TO MAKE ANY REPRESENTATIONS, OTHER THAN THOSE CONTAINED IN THIS PROSPECTUS,
IN CONNECTION WITH THE OFFERING MADE HEREBY, AND, IF GIVEN OR MADE, SUCH INFORMATION OR REPRESENTATION MUST NOT BE RELIED UPON
AS HAVING BEEN AUTHORIZED BY THE COMPANY OR ANY OTHER PERSON. NEITHER THE DELIVERY OF THIS PROSPECTUS NOR ANY SALE MADE HEREUNDER
SHALL UNDER ANY CIRCUMSTANCES CREATE ANY IMPLICATION THAT THERE HAS BEEN NO CHANGE IN THE AFFAIRS OF THE COMPANY SINCE THE DATE
HEREOF. THIS PROSPECTUS DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY ANY SECURITIES OFFERED HEREBY
BY ANYONE IN ANY JURISDICTION IN WHICH SUCH OFFER OR SOLICITATION IS NOT AUTHORIZED OR IN WHICH THE PERSON MAKING SUCH OFFER OR
SOLICITATION IS NOT QUALIFIED TO DO SO OR TO ANY PERSON TO WHOM IT IS UNLAWFUL TO MAKE SUCH OFFER OR SOLICITATION.
4
PROSPECTUS SUMMARY
We
are located in Wilsonville, Oregon and were originally incorporated in the state of New Mexico in January of 1984. We were engaged
in the natural gas and asphalt businesses until 2007, at which time we liquidated our assets and operations and distributed the
net proceeds to our shareholders after paying our debts. On October 2, 2008, we re-domiciled from New Mexico to Nevada and commenced
operations in the wind turbine business in the fiscal quarter ended May 31, 2010. We are in the business of designing, developing,
and marketing small wind turbine systems and related equipment for electrical power generation, specifically for use in residential,
small business, rural electric utility systems, other rural locations, and other infrastructure applications.
We
operate two wholly-owned subsidiaries: XZERES Energy Services Corp., which was incorporated in Nevada in January, 2011 and XZERES
Wind Europe Limited, which was formed in Ireland in October, 2010.
Our
principal offices are located at 9025 SW Hillman, Suite 3126, Wilsonville, OR 97070. Our phone number is (503) 388-7350.
We
are in the business of designing, developing, and marketing distributed generation, wind power systems for the small wind (2.4kW-100kW)
market as well as power management solutions. We design, develop, manufacture, test, assemble and market our systems around the
world. Our grid connected and off grid wind turbine systems, which consist of our 2.4kW and 10kW devices and related equipment,
are utilized for electrical power generation for applications and markets such as residential, micro-grid based rural and island
electrification, agricultural, small business, rural electric utility systems, as well as other private, corporate infrastructure
and government applications. Our wind power systems are focused on distributed energy, where a specific machine's energy output
is largely or entirely used on-site where the equipment is installed, as well as grid connected applications. While many of our
customers take advantage of their local net-metering rules within the United States and Feed In Tariffs that are often available
in Europe and Internationally (to sell power back to the grid), our wind power systems are not dependent on transmission needs
to carry the energy produced to another location and are therefore well suited for remote electrification, available with or without
a battery coupled solution. Our power management solutions are deployed primarily for commercial and light industrial applications,
and secondarily residential usage and target both urban and rural customers.
Our
wind turbine products integrate with currently available complementary products from other manufacturers, such as inverters, lightning
protection equipment and towers. We do not have any written agreements with these other manufacturers. Our systems comprise several
major components including the turbine sub-system (which converts wind energy into electricity), the tower (which holds the turbine
high in the wind), a turbine controller (which controls the turbine subsystem and contains monitoring hardware and software),
and an inverter (which converts the electricity generated from direct current (DC) to alternating current (AC) to connect to a
customer's electrical load or to the grid). We currently design and engineer the turbine and controller, but contract the
manufacturing of the turbine and controller through outside parties. The tower, while designed to specifications suitable to our
turbine requirements, is made and sold by separate companies depending on the style that the customer orders. Similarly, the inverter,
which converts the energy generated to a form suitable to connect into the electric grid, is manufactured by another company and
is a commercial off-the-shelf product. We sell a "system" with all of these parts included in the selling price. The
system will not operate as designed without these complementary products. In the case of the inverter, there are other commercially
available products that will integrate with our components, but we perform the system integration design to sell the entire system
as a package to the customer. Going forward, we intend to develop new turbine systems, designed for ease of installation and to
certification standards which cover standard testing procedures, power ratings, and structural designs of small wind systems.
We
utilize local dealers to market, sale, and install our products in the various regions in which we operate. Our internal sales,
marketing, and support helps provide assistance to our dealers in the form of direct sales lead generation, customer site assessment,
assistance with government-based financial incentives and local permitting, application engineering, installation, support and
maintenance.
In
addition to our wind turbine business, we manufacture and sell a family of power efficiency products which are designed to improve
the "power factor" and reduce the amount of reactive power being drawn at a location. This expands our product offering
beyond small wind power generation into the realm of power management and power efficiency solutions. The addition of this complementary
and diversified family of products enables us to offer both business and residential customers, in urban and rural locations,
the ability to reduce their power consumption, extend the life of their electrical equipment and electronics via central surge
suppression, reduce their carbon footprint, and depending upon the type of customer and the application, provide significant energy
savings. We sale our product line of power efficiency devices targeted at small to medium-sized businesses.
5
RISK FACTORS
Investing
in our common stock involves a high degree of risk. Prospective investors should carefully consider the risks described below
and other information contained in this prospectus, before purchasing shares of our common stock. There are numerous and varied
risks that may prevent us from achieving our goals. If any of these risks actually occur, our business, financial condition and
results of operations may be materially adversely affected. In that case, the trading price of our common stock could decline
and investors in our common stock could lose all or part of their investment.
Risks
Related to Our Business Model
The
small wind energy business has continued to gain broader commercial acceptance, but is also influenced by many factors, some of
which can materially affect the industry and impact our operations.
Many
factors may affect the commercial acceptance of small wind energy technology, including the following:
performance,
reliability and cost-effectiveness of wind energy technology compared to conventional and other renewable energy sources and products;
developments
relating to other alternative energy generation technologies;
fluctuations
in economic and market conditions that affect the cost or viability of conventional and alternative energy sources, such as increases
or decreases in the prices of oil and other fossil fuels;
overall
growth in the alternative energy equipment market;
availability
and terms of government subsidies and incentives to support the development of alternative energy sources, including small wind
energy;
fluctuations
in capital expenditures by utilities and independent power producers, which tend to decrease when the economy slows and interest
rates increase; and
the development
of new and profitable applications requiring the type of remote electric power provided by small wind energy systems.
Our
suppliers may not supply us with a sufficient amount of components or components of adequate quality or they may provide components
at significantly increased prices, which would impact our revenue and profitability.
We
assemble our products using component parts manufactured by third parties. Some of these components are currently available only
from a limited number of sources. We do not have any written material long-term supply contracts with any suppliers. As a result,
we may experience delays in production if we fail to identify alternative suppliers, or if any parts supply is interrupted, each
of which could materially adversely affect our business and operations. If we fail to anticipate customer demand properly, an
oversupply of parts could result in excess or obsolete inventories, which could adversely affect our business. To date, we have
not been subject to any production delays or been affected by a shortage or surplus in supplies; however, a reduction or interruption
in supply, a significant increase in price of one or more components or a decrease in demand of products could materially adversely
affect our business and operations and could materially damage our customer relationships. Financial problems of suppliers on
whom we rely could limit our supply of components or increase our costs. Also, we cannot guarantee that any of the parts or components
that we expect to purchase will be of adequate quality or that the prices we pay for the parts or components will not increase.
Inadequate quality of products from suppliers could interrupt our ability to supply quality products to our customers in a timely
manner. Additionally, defects in materials or products supplied by our suppliers that are not identified before our products are
placed in service by our customers could result in higher warranty costs and damage to our reputation. Some of our suppliers obtain
components internationally. As a result, we may be indirectly subject to delays in delivery due to the timing or regulations associated
with the import/export process, delays in transportation or regional instability.
6
Because
our sales strategy partly relies on dealers to distribute and support our products if we are unable to maintain those relationships
and create new ones our business will suffer.
Dealers
are an important aspect in our sales and distribution strategy. Dealers provide a vital link to potential end users of renewable
energy. There can be no assurance that we will be successful in maintaining our existing dealer relationships or establishing
new ones on favorable terms, or at all. If we are not able to establish a viable, larger network of dealers for our products,
our sales and our ability to support our customers will be adversely affected, which could have a material adverse effect on our
business, including our operating results, financial condition and cash flow.
Product
quality expectations may not be met causing slower market acceptance.
Despite
our continuous quality improvement initiatives, we may not meet customer expectations. Any significant quality issues with our
products could have a material adverse effect on our rate of product adoption, results of operations, financial condition and
cash flow. Moreover, as we develop new products and new configurations for our wind turbines or as our customers place existing
configurations in commercial use, our products may perform below expectations. Any significant performance below expectations
could adversely affect our operating results, financial condition and cash flow and affect the marketability of our products.
Because
we sell our products with a ten year limited warranty, we are subject to losses based on defective products and other potential
covered product problems.
We
sell our products with a ten year limited warranty covering certain parts. There can be no assurance that the provision for estimated
product warranty expenses, currently set at approximately 2% of gross sales, will be sufficient to cover our warranty expenses
in the future. We cannot ensure that our efforts to reduce our risk through warranty disclaimers will effectively limit our liability.
Any significant incurrence of warranty expense in excess of estimates could have a material adverse effect on our business, including
our operating results, financial condition and cash flow.
If
we are unable to succeed in marketing, making sales and increasing our customer base to support our business operations, we will
be unable to achieve profitable operations and our business may fail.
If we are
unable to succeed in establishing, training and expanding a distribution network domestically and internationally, partnering
with renewable energy consultants, making sales, and expanding our customer base to support our business operations, it could
have a material adverse effect on our business, including our operating results, financial condition and cash flow.
If
technological changes in the power industry render our products uncompetitive or obsolete, our market share may decline and cause
our business to suffer.
The alternative
power market is characterized by continually changing technology requiring improved features, such as higher quality, increased
efficiency, higher power output and lower price. Our failure to further refine our technology and develop and introduce new power
products could cause our products to become uncompetitive or obsolete, which could reduce our market share and cause our revenues
to decline. The alternative power industry is rapidly evolving and competitive. We will need to invest additional resources in
research and development to keep pace with technological advances in the alternative power industry and to effectively compete
in the future. While we intend to continually improve our products, our development efforts may be rendered obsolete by the technological
advances of others, and other technologies may prove more advantageous for the commercialization of alternative power products.
Should this occur, it could have a material adverse effect on our business, including our operating results, financial condition
and cash flow.
7
If
we fail to respond to changes in customer preferences in a timely manner, our sales may be adversely affected, and our business
may suffer.
The small
wind power industry is highly competitive, and other suppliers of similar product are also attempting to gain competitive advantages
as well. Our financial performance depends on our ability to identify, originate and define industry trends, as well as to anticipate,
gauge and react to changing customer preferences in a timely manner. If we misjudge the demands of the small wind power market,
it could have a material adverse effect on our business, including our operating results, financial condition and cash flow.
The
complexity of our products may lead to errors, defects, and bugs, which could subject us to significant costs or damages and adversely
affect market acceptance of our products, and our business may suffer.
Our products
may contain undetected errors, weaknesses, defects or bugs as is or as new models are released. If our products or future products
contain production defects, reliability, quality or compatibility problems that are significant to our customers, our reputation
may be damaged and customers may be reluctant to continue to buy our products, which could adversely affect our ability to retain
and attract new customers. In addition, these defects or bugs could interrupt or delay sales of affected products, which could
have a material adverse effect on our business, including our operating results, financial condition and cash flow.
We may be
required to make significant expenditures of capital and other resources to resolve the problems. This could result in significant
additional development costs and the diversion of technical and other resources from our other development efforts. We could also
incur significant costs to repair or replace defective products. These costs or damages could have a material adverse effect on
our business, including our operating results, financial condition and cash flow.
If
we are unable to successfully manage growth, our operations could be adversely affected.
Potential
risks to our overall growth outlook include: the ability of our suppliers to ramp production, closed customers taking longer to
prepare their sites for installation, since we do not recognize revenue until we deliver the system to the customer; negative
changes in available incentives for renewable energy; increased restrictions on obtaining permits; and a deterioration in sentiment
toward wind energy. With respect to incentives (a key driver in developed areas), there is a tendency for programs to be adjusted
periodically. Our experience is that while one region may cut incentives, another area expands incentives. We would expect this
ebb and flow of incentives around the world to continue and our global positioning positions us to take advantage of such trends.
As opposed
to our wind turbine systems, our power efficiency products generally do not receive incentives and are not subject to lengthy
permitting processes or installation needs. However, it does often take time to educate a potential customer about the benefits
of this technology. We are experiencing a growing pipeline of activity in our power efficiency business.
Our progress
is expected to require the full utilization of our management, financial and other resources, which to date has occurred with
limited working capital. Our ability to manage growth effectively will depend on our ability to improve and expand operations,
including our financial and management information systems, and to recruit, train and manage technical and sales personnel. There
can be no absolute assurance that management will be able to manage growth effectively.
If we do
not properly manage the growth of our business, we may experience significant strains on our management and operations and disruptions
in our business. Various risks arise when companies and industries grow quickly. If our business or industry grows too quickly,
our ability to meet customer demand in a timely and efficient manner could be challenged. We may also experience development or
production delays as we seek to meet increased demand for our products. Our failure to properly manage the growth that we or our
industry might experience could negatively impact our ability to execute on our operating plan and, accordingly, could have an
adverse impact on our business, our cash flow and results of operations, and our reputation with our current or potential customers.
8
If
we are not able to service the loan agreement in place with our senior-secured lender, our results of operations and financial
condition will be immediately impacted.
On April
1, 2013, we entered into a series of agreements that provide us with a senior secured lending facility (the "Loan")
in an initial amount of $2.1 million up to a potential total funding amount of $6.5 million, subject to certain performance conditions.
The Loan is funded by Renewable Power Resources, LLC, a Delaware limited liability company with offices in New York (the "Lender").
Balances owed under the Loan bear interest at an annual rate of 10%. Unused loan balances bear interest at 2.25% per annum. The
Loan also provides for other fees and compensation due to the Lender, including but not limited to a collateral administration
fee of 2.75% and the grant of a warrant to purchase up to 7.5 million shares of our common stock at any time over the next 48
months at a strike price of $0.35 per share. The Lender also has the ability to convert up to $1.625 million of the balance owed
under the Loan into an additional warrant to purchase up to 3.25 million shares of our common stock, also exercisable at $0.35
per share. The Loan is made by us and our US subsidiary and is guaranteed by our UK subsidiary.
Also as
a result of the Loan, certain terms of our existing $1.5 million secured credit facility with Hanover have been amended. In particular,
us and Hanover have agreed to a revised payoff schedule for the balance owed to Hanover under the current credit facility between
us and Hanover, and Hanover has agreed to subordinate the priority of its security interest in our assets to the new security
interest created in favor of Renewable Power Resources, LLC as part of the Loan.
On April
5, 2013, we entered into consulting agreements with Hofflich & Associates, Inc. ("Hofflich") to provide us with
management support services including that related to financial reporting, budgeting, and general financing strategy. We have
agreed to pay Hofflich Value a weekly fee in the amount of $17,500.
On the same
day, we also entered into an advisory agreement with Max Value Advisors, LLC ("Max Value") to provide us with strategic
financial advice. We have agreed to pay Max Value a monthly fee in the amount of $40,000.
These agreements
were required by the terms of our senior secured lending facility loan funded by Renewable Power Resources, LLC.
Our ability
to service the senior-secured debt as well as the subordinated debt is critical to our survival. In the event that we default
in our debt obligations, our business results and financial condition will be immediately impaired.
9
Risks
Related to Control Persons, Key Employees and Management
Because
our business is dependent upon the performance of key employees and consultants, the loss of those persons would materially impact
our business.
Our business
is dependent upon the performance of certain key employees, notably our CEO and director, Frank Greco, our CFO and director, Steven
Shum. The loss of any of these key persons could have a material adverse effect on our business, including our operating results,
financial condition and cash flow.
Our
board of directors may change our operating policies and strategies without prior notice or stockholder approval and such changes
could harm our business and results of operations and the value of our stock.
Our board
of directors has the authority to modify or waive our current operating policies and strategies without prior notice and without
stockholder approval. We cannot predict the effect any changes to our current operating policies and strategies would have on
our business, operating results and value of our stock. However, the effects could have a material adverse effect on our business,
including our operating results, financial condition and cash flow.
Risks
Related to Legal Uncertainty
If
our products are found to cause injury, have defects, or fail to meet industry standards, we will incur substantial litigation,
judgment, product liability, and product recall costs, which could cause our business to fail.
We may be
subject to liability for any accidents or injury that may occur in connection with the use of our products or due to claims of
defective design, integrity or durability of the products. Product liability claims could adversely affect our brand name reputation,
revenues and ultimately lead to losses. In addition, product defects could result in product recalls and warranty claims. A product
recall could delay or halt the sale of our products until we are able to remedy the product defects. The occurrence of any claims
or judgments , or product recalls will negatively affect our brand name image and could have a material adverse effect on our
business, including our operating results, financial condition and cash flow.
If
any of the products we expect to sell infringe on the intellectual property rights of others, we may find ourselves involved in
costly litigation, which could cause our business to fail.
Although
we have not received notices of any alleged infringement, we cannot be certain that the products we will manufacture do not infringe
on issued patents, trademarks and/or copyright rights of others. We may be subject to legal proceedings and claims from time to
time in our ordinary course of business arising out of intellectual property rights of others. These legal proceedings can be
very costly, and could have a material adverse effect on our business, including our operating results, financial condition and
cash flow.
If
we are not granted full protection for property rights over our name and trademark, we may have difficulty safeguarding our name
or the public's identification of our brand resulting in a potential loss of any competitive advantage.
Our success will depend, in part, on our ability
to obtain and enforce intellectual property rights over our product designs, name and trademark in both the United States and other
countries. We have eleven trademarks across several countries and twelve additional trademark applications pending. There can be
no assurance that the steps we intend to take to protect our rights will be adequate, that we will be able to secure protections
or registrations for our rights or marks in the United States or in foreign countries or that third parties will not infringe upon
our territorial rights or misappropriate our technology, designs, copyrights, trademarks, service marks, domain name and similar
proprietary rights. In addition, effective intellectual property protection may be unenforceable or limited in certain foreign
countries. It is possible that our competitors or others will adopt product or service names similar to ours, thereby impeding
our ability to build brand identity which could possibly lead to customer confusion. Our inability to protect our intellectual
property adequately could have a material adverse effect on the acceptance of our brand and on our business, financial condition
and operating results. In the future, litigation may be necessary to enforce and protect our territorial distribution rights, our
trade secrets, copyrights and other intellectual property rights. Litigation would divert management resources and be expensive
and may not effectively protect our intellectual property. We may be subject to litigation for claims of infringement of the rights
of others or to determine the scope and validity of the territorial and/or intellectual property rights of others. If other parties
file applications for marks used or registered by us, we may have to oppose those applications and participate in administrative
proceedings to determine priority of rights to the mark, which could result in substantial costs to us due to the diversion of
management's attention and the expense of such litigation, even if the eventual outcome is favorable to us. Adverse determinations
in such litigation could result in the loss of certain of our proprietary intellectual property.
10
We
may be exposed to patent infringement, misappropriation or other claims by third parties and an adverse determination could result
in us paying significant damages.
Our success depends, in part, on our ability
to use and develop our technology and know-how and to manufacture products without infringing the intellectual property or other
rights of third parties. We own five issued patents and eight pending patent applications covering certain aspects of our technology.
We may be subject to litigation involving claims of patent infringement or violation of intellectual property rights of third
parties. The validity and scope of claims relating to wind power technology patents involve complex scientific, legal and factual
questions and analyses and, therefore, may be highly uncertain. The defense and prosecution of intellectual property suits, patent
opposition proceedings, trademark disputes and related legal and administrative proceedings can be both costly and time consuming
and may significantly divert our resources and the attention of our technical and management personnel. An adverse ruling in any
such litigation or proceedings could subject us to significant liability to third parties, require us to seek licenses from third
parties, to pay ongoing royalties, or to redesign our products or subject us to injunctions prohibiting the manufacture and sale
of our products or the use of our technologies. Protracted litigation could also result in our customers or potential customers
deferring or limiting their purchase or use of our products until resolution of such litigation.
Because
the payment of dividends is at the discretion of the Board of Directors, investors may not realize cash dividends at the frequency
or in the amounts they anticipate.
With the
exception of the dividend paid upon the liquidation of our former oil and gas operations in the fiscal year ended February 28,
2009, we have never declared or paid any cash dividends on our common stock. Our payment of any future dividends will be at the
discretion of our board of directors after taking into account various factors, including but not limited to our financial condition,
operating results, cash needs, growth plans and the terms of any credit agreements that we may be a party to at the time. Distributions
to our stockholders are subordinate to the payment of our debts and obligations. If we have insufficient funds to pay our debts
and obligations, distributions to stockholders will be suspended pending the payment of such debts and obligations. Accordingly,
investors must rely on sales of their own common stock after price appreciation, which may never occur, as the only way to recover
their initial investment.
Because
we intend to conduct business outside of the United States, we will be subject to risks of doing business in foreign countries
which are not found in doing business in the United States which could have a material adverse effect on our business.
We intend
to conduct business outside of the United States, specifically Europe and Asia-Pacific. Doing business in foreign countries carries
with it certain risks that are not found in doing business in the United States, which could have a material adverse effect on
our business, including our operating results, financial condition and cash flow. The risks of doing business in foreign countries
that could result in losses against which we are not insured include:
exposure
to local economic conditions;
potential
adverse changes in the diplomatic relations of foreign countries with the United States;
hostility
from local populations;
the adverse
effect of currency exchange controls;
restrictions
on the withdrawal of foreign investment and earnings;
government
policies against businesses owned by foreigners;
investment
restrictions or requirements;
expropriations
of property;
the potential
instability of foreign governments;
the risk
of insurrections;
risks of
renegotiation or modification of existing agreements with governmental authorities;
foreign
exchange restrictions;
withholding
and other taxes on remittances and other payments by subsidiaries; and
changes
in taxation structure.
11
Because
we intend to conduct business in foreign countries, exchange rates may cause future losses in our international operations.
Because
we expect to develop international sales and distributors, we may derive revenues from any such international operations in currencies
other than the U.S. dollar. In so doing, we may incur currency translation losses due to changes in the values of foreign currencies
and in the value of the U.S. dollar. We cannot predict the effect of exchange rate fluctuations upon future operating results.
Because
our articles of incorporation and bylaws and Nevada law limit the liability of our officers, directors, and others, shareholders
may have no recourse for acts performed in good faith.
Under our
articles of incorporation, bylaws and Nevada law, each of our officers, directors, employees, attorneys, accountants and agents
are not liable to us or the shareholders for any acts they perform in good faith, or for any non-action or failure to act, except
for acts of fraud, willful misconduct or gross negligence. Our articles and bylaws provide that we will indemnify each of our
officers, directors, employees, attorneys, accountants and agents from any claim, loss, cost, damage liability and expense by
reason of any act undertaken or omitted to be undertaken by them, unless the act performed or omitted to be performed constitutes
fraud, willful misconduct or gross negligence.
Because
our Series A Stock has liquidation preferences, conversion rights, certain protective voting rights, and other features, any investors
purchasing common stock will be subject to and affected by these rights.
Our board
of directors is authorized to issue up to 5,000,000 shares of preferred stock. On October 19, 2012, we filed a Certificate of
Amendment to our Articles of Incorporation with the Nevada Secretary of State (the "Amendment") to designate 2,000,000
shares of Series A Convertible Preferred Stock ("Series A Stock"). On the same day, we issued 1,428,571 shares of
the Series A Stock at a price per share of $1.05 for total proceeds of $1,500,000.
Each share
of Series A Stock is senior in priority to our common stock and is convertible, at the option of the holder thereof, into such
number of fully-paid and non-assessable shares of common stock that is equal to $1.05 divided by the Conversion Price. The Conversion
Price for the Series A Stock is $0.35, initially, subject to adjustment as provided in the Amendment.
The Series
A Stock will participate in dividends or other distributions when, as, and if declared by our Board of Directors. No dividend
may be declared or paid with respect to the common Stock or any future issuances of preferred stock until equal dividends on the
Series A Stock (on an as-converted basis) have been first declared and paid. If we are liquidated, holders of the Series A Stock
will be entitled to receive, before any distributions are made to the holders of any other series of preferred stock of and the
holders of our common stock, respectively, the original purchase price per share, plus all declared but unpaid dividends on each
share (the "Liquidation Preference"). Any remaining assets after payment of the Liquidation Preference will be distributed
ratably to the holders of common stock and the Series A Stock, with holders of the Series A Stock participating on an as-converted
basis until such time as the holders of the Series A Stock have received an amount equal to one and thirty-five hundredths times
(1.35X) their original purchase price per share ($1.42). Thereafter, any remaining proceeds will be distributed ratably to the
holders of the common stock. In addition, the Amendment grants the Series A Stock the ability to vote with our common stock and
Series A Stock is entitled to vote the amount of votes the holder would be entitled to on an as converted basis.
12
The effect
of our Series A Stock will have on the value of our market price and our ability to raise capital is unknown, but could very well
diminish both. Investors should consider that the issuance of Series A Stock could have the effect of delaying, deferring, or
preventing a change in control with us and will adversely affect the rights of holders of our common stock.
Moreover,
our board of directors has the power to establish the dividend rates, liquidation preferences, voting rights, redemption and conversion
terms and privileges with respect to any series of preferred stock. The issuance of any shares of preferred stock having rights
superior to those of the common stock may result in a decrease in the value or market price of the common stock. Holders of preferred
stock may have the right to receive dividends, certain preferences in liquidation and conversion rights. The issuance of preferred
stock could, under certain circumstances, have the effect of delaying, deferring or preventing a change in control of us without
further vote or action by the stockholders and may adversely affect the voting and other rights of the holders of common stock.
Because
we have available a significant number of authorized shares of common stock, we may issue additional shares for a variety of reasons
which will have a dilutive effect on our shareholders, resulting in reduced ownership and decreased voting power, or may result
in a change of control.
Our board
of directors has the authority to issue additional shares of common stock up to the authorized amount of 100,000,000 as stated
in our Articles of Incorporation. Our board of directors may choose to issue some or all of such shares to acquire one or more
businesses or other types of property, or to provide additional financing in the future. The issuance of any such shares may result
in a reduction of the book value or market price of the outstanding shares of our common stock. If we do issue any such additional
shares, such issuance also will cause a reduction in the proportionate ownership and voting power of all other shareholders. Further,
any such issuance may result in a change of control of the company. For instance, if the board of directors decides to issue a
large number of shares of our common stock, the issuance could, if large enough in relation to our presently issued and outstanding
shares, result in a change of control of our company. The board has the power to decide the amount of shares and price of those
shares under Nevada law, and our capital needs may require a large amount of shares to finance our company. So the risk exists
that our current capital structure may change resulting in new shareholders wielding a large percentage of shares.
Certain
legislation relating to public companies, including the Sarbanes-Oxley Act of 2002, may make it more difficult for us to retain
or attract officers and directors.
The Sarbanes-Oxley
Act of 2002 was enacted in response to public concerns regarding corporate accountability in connection with recent accounting
scandals. The stated goals of the Sarbanes-Oxley Act are to increase corporate responsibility, to provide for enhanced penalties
for accounting and auditing improprieties at publicly traded companies, and to protect investors by improving the accuracy and
reliability of corporate disclosures pursuant to the securities laws. The Sarbanes-Oxley Act generally applies to all companies
that file or are required to file periodic reports with the SEC, under the Securities Exchange Act of 1934. As a public company,
we are required to comply with the Sarbanes-Oxley Act. The enactment of the Sarbanes-Oxley Act of 2002 has resulted in a series
of rules and regulations by the SEC that increase responsibilities and liabilities of directors and executive officers. The perceived
increased personal risk associated with these recent changes may deter qualified individuals from accepting these roles. As a
result, it may be more difficult for us to attract and retain qualified persons to serve on our board of directors or as executive
officers. We continue to evaluate and monitor developments with respect to these rules, and we cannot predict or estimate the
amount of additional costs we may incur or the timing of such costs.
Risks
Relating to Securities
Persons
associated with securities offerings, including consultants, may be deemed to be broker dealers, which may expose us to claims
for rescission or damages.
If our securities
are offered without engaging a registered broker-dealer we may face claims for rescission and other remedies. We may become engaged
in costly litigation to defend these claims, which would lead to increased expenditures for legal fees and divert managements'
attention from operating the business. If we could not successfully defend these claims, we may be required to return proceeds
of any affected offering to investors, which would harm our financial condition.
13
Our
stock price may be volatile.
The
price of our stock could fluctuate widely in price in response to various factors, many of which are beyond our control, including
the following:
•
changes
    in our industry;
•
competitive
    pricing pressures;
•
our ability to
    obtain working capital or project financing;
•
additions
    or departures of key personnel;
•
limited
    "public float" in the hands of a small number of persons whose sales or lack of sales could result in positive
    or negative pricing pressure on the market price for our common stock;
•
sales
    of our common stock;
•
our
    ability to execute our business plan;
•
operating
    results that fall below expectations;
•
loss
    of any strategic relationship;
•
regulatory
    developments;
•
economic
    and other external factors; and
•
period-to-period
    fluctuations in our financial results.
In addition,
the securities markets have from time to time experienced significant price and volume fluctuations that are unrelated to the
operating performance of particular companies. These market fluctuations may also materially and adversely affect the market price
of our common stock.
There
is currently a limited trading market for our common stock, and we cannot ensure that a liquid market will be established or maintained.
Only a limited
market has developed for the purchase and sale of our common stock. We cannot predict how liquid the market for our common stock
might become. Therefore, the purchase of our shares must be considered a long-term investment acceptable only for prospective
investors who are willing and can afford to accept and bear the substantial risk of the investment for an indefinite period of
time. Because there is a limited public market for the resale of our shares, a prospective investor may not be able to liquidate
its investment, even in the event of an emergency, and our shares may not be acceptable as collateral for a loan.
Furthermore,
for companies whose securities are quoted on the OTCQB, it is more difficult (1) to obtain accurate quotations, (2) to obtain
coverage for significant news events because major wire services generally do not publish press releases about such companies,
and (3) to obtain needed capital.
14
Our
common stock is currently a "penny stock," which may make it more difficult for our investors to sell their shares.
Our common
stock is currently and may continue in the future to be subject to the "penny stock" rules adopted under Section 15(g)
of the Exchange Act. The penny stock rules generally apply to companies whose common stock is not listed on The NASDAQ Stock Market
or other national securities exchange and trades at less than $4.00 per share, other than companies that have had average revenue
of at least $6,000,000 for the last three years or that have tangible net worth of at least $5,000,000 ($2,000,000 if the company
has been operating for three or more years). These rules require, among other things, that brokers who trade penny stock to persons
other than "established customers" complete certain documentation, make suitability inquiries of investors and provide
investors with certain information concerning trading in the security, including a risk disclosure document and quote information
under certain circumstances. Many brokers have decided not to trade penny stocks because of the requirements of the penny stock
rules and, as a result, the number of broker-dealers willing to act as market makers in such securities is limited. If we remain
subject to the penny stock rules for any significant period, it could have an adverse effect on the market, if any, for our securities.
Since our securities are subject to the penny stock rules, investors may find it more difficult to dispose of our securities.
Offers
or availability for sale of a substantial number of shares of our common stock may cause the price of our common stock to decline.
If our stockholders
sell substantial amounts of our common stock in the public market, including shares that are now registered under an effective
registration statement, or upon the expiration of any statutory holding period, under Rule 144, or issued upon the exercise of
outstanding options or warrants, it could create a circumstance commonly referred to as an "overhang" and in anticipation
of which the market price of our common stock could fall. The existence of an overhang, whether or not sales have occurred or
are occurring, also could make more difficult our ability to raise additional financing through the sale of equity or equity-related
securities in the future at a time and price that we deem reasonable or appropriate.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This
prospectus contains forward-looking statements. All statements other than statements of historical facts contained in this prospectus,
including statements regarding our future results of operations and financial position, business strategy and plans and objectives
of management for future operations, are forward-looking statements. These statements involve known and unknown risks, uncertainties
and other factors that may cause our actual results, performance or achievements to be materially different from any future results,
performance or achievements expressed or implied by the forward-looking statements.
In
some cases, you can identify forward-looking statements by terms such as "may," "will," "should,"
"expects," "plans," "anticipates," "could," "intends," "target," "projects,"
"contemplates," "believes," "estimates," "predicts," "potential" or "continue"
or the negative of these terms or other similar words. These statements are only predictions. We have based these forward-looking
statements largely on our current expectations and projections about future events and financial trends that we believe may affect
our business, financial condition and results of operations. We discuss many of the risks in greater detail under the heading
"Risk Factors." Also, these forward-looking statements represent our estimates and assumptions only as of the date of
this prospectus. Except as required by law, we assume no obligation to update any forward-looking statements after the date of
this prospectus.
This
prospectus also contains estimates and other statistical data made by independent parties and by us relating to market size and
growth and other industry data. This data involves a number of assumptions and limitations, and you are cautioned not to give
undue weight to such estimates. We have not independently verified the statistical and other industry data generated by independent
parties and contained in this prospectus and, accordingly, we cannot guarantee their accuracy or completeness. In addition, projections,
assumptions and estimates of our future performance and the future performance of the industries in which we operate are necessarily
subject to a high degree of uncertainty and risk due to a variety of factors, including those described in "Risk Factors"
and elsewhere in this prospectus. These and other factors could cause results to differ materially from those expressed in the
estimates made by the independent parties and by us.
15
USE
OF PROCEEDS
This
prospectus relates to sale of shares of common stock that may be offered and sold from time to time by the selling stockholder.
We will not receive any proceeds from the sale of shares by the selling stockholder.
SELLING STOCKHOLDERS
The
selling stockholder named in this prospectus (the "Selling Stockholder") is offering 300,000 shares offered through
this prospectus that were granted to the selling stockholder pursuant to the Consulting Agreement.
The
following table provides, as of September 20, 2013, information regarding the beneficial ownership of our common shares held by
each of the selling stockholders, including:
1.
the
    total number of common shares owned by each selling stockholder prior to this offering;
2.
the total number
    of common shares that are to be offered by each selling stockholder;
3.
the
    total number of common shares that will be owned by each selling stockholder upon completion of the offering; and
4.
the percentage
    owned by each selling stockholder, prior to and upon completion of the offering.
Information
with respect to beneficial ownership is based upon information obtained from the selling stockholders. Information with respect
to "Shares Beneficially Owned After the Offering" assumes the sale of all of the common shares offered by this prospectus
and no other purchases or sales of our common shares by the selling stockholders. Except as described below and to our knowledge,
the named selling stockholder beneficially owns and has sole voting and investment power over all common shares or rights to these
common shares.
Because
the selling stockholders may offer all or part of the common shares, which they own pursuant to the offering contemplated by this
reoffer prospectus
,
and because its offering is not being underwritten on
a firm commitment basis, no estimate can be given as to the amount of shares that will be held upon termination of this offering.
The common shares currently owned offered by
this reoffer prospectus
may be offered
from time to time by the selling stockholders named below.
SHARES
    BENEFICIALLY OWNED PRIOR TO THIS OFFERING(1)
NUMBER
                                                                          OF SHARES
BEING
SHARES
                                                                                     BENEFICIALLY OWNED UPON
COMPLETION
        OF THE OFFERING(1)
NAME
NUMBER
PERCENT(2)
OFFERED
NUMBER
PERCENT(2)
Bryan
    Clark
300,000
1.0085%
299,974
26
0.0085
%
(1)
The
    number and percentage of shares beneficially owned is determined in accordance with Rule 13d-3 of the Securities Exchange
    Act of 1934, as amended, and the information is not necessarily indicative of beneficial ownership for any other purpose.
    Under such rule, beneficial ownership includes any shares as to which the selling stockholder has sole or shared voting power
    or investment power and also any shares which the selling stockholder has the right to acquire within 60 days.
(2)
Based
    upon 29,746,042 shares of common stock issued and outstanding as of September 5, 2013.
S
ince
our company does not currently meet the registrant requirements for use of Form S-3, the amount of common shares which may be
resold by means of this
reoffer prospectus
by the selling stockholder, and any other
person with whom he or she is acting in concert for the purpose of selling securities of our company, must not exceed, in any
three month period, the amount specified in Rule 144(e) promulgated under the Securities Act.
16
PLAN OF DISTRIBUTION
Timing
of Sales
The selling
stockholder may offer and sell the shares covered by this prospectus at various times. The selling stockholder will act independently
of our company in making decisions with respect to the timing, manner and size of each sale.
No Known
Agreements to Resell the Shares
To
our knowledge, the selling stockholder has no agreement or understanding, directly or indirectly, with any person to resell the
common shares covered by this prospectus.
Offering
Price
The sales
price offered by the selling stockholders to the public may be:
1.
the
    market price prevailing at the time of sale;
2.
a price related
    to such prevailing market price; or
3.
such
    other price as the selling stockholders determine from time to time.
Manner
of Sale
The
common shares may be sold by means of one or more of the following methods:
1.
a
    block trade in which the broker-dealer so engaged will attempt to sell the common shares as agent, but may position and resell
    a portion of the block as principal to facilitate the transaction;
2.
Purchases by
    a broker-dealer as principal and resale by that broker-dealer for its account pursuant to this prospectus;
3.
ordinary brokerage
    transactions in which the broker solicits purchasers;
4.
through
    options, swaps or derivatives;
5.
in transactions
    to cover short sales;
6.
privately
    negotiated transactions; or
7.
in a combination
    of any of the above methods.
The
selling stockholder may sell his common shares directly to purchasers or may use brokers, dealers, underwriters or agents to sell
their common shares. Brokers or dealers engaged by the selling stockholder may arrange for other brokers or dealers to participate.
Brokers or dealers may receive commissions, discounts or concessions from the selling stockholders, or, if any such broker-dealer
acts as agent for the purchaser of common shares, from the purchaser in amounts to be negotiated immediately prior to the sale.
The compensation received by brokers or dealers may, but is not expected to, exceed that which is customary for the types of transactions
involved.
Broker-dealers
may agree with a selling stockholder to sell a specified number of common shares at a stipulated price per common share, and,
to the extent the broker-dealer is unable to do so acting as agent for a selling stockholder, to purchase as principal any unsold
common shares at the price required to fulfill the broker-dealer commitment to the selling stockholder.
Broker-dealers
who acquire common shares as principal may thereafter resell the common shares from time to time in transactions, which may involve
block transactions and sales to and through other broker-dealers, including transactions of the nature described above, in the
over-the-counter market or otherwise at prices and on terms then prevailing at the time of sale, at prices then related to the
then-current market price or in negotiated transactions. In connection with resales of the common shares, broker-dealers may pay
to or receive from the purchasers of shares commissions as described above.
17
If
our selling stockholder enters into arrangements with brokers or dealers, as described above, we are obligated to file a post-effective
amendment to this registration statement disclosing such arrangements, including the names of any broker-dealers acting as underwriters.
The
selling stockholder and any broker-dealers or agents that participate with the selling stockholder in the sale of the common shares
may be deemed to be "underwriters" within the meaning of the Securities Act. In that event, any commissions received
by broker-dealers or agents and any profit on the resale of the common shares purchased by them may be deemed to be underwriting
commissions or discounts under the Securities Act.
We
will make copies of this prospectus available to the selling stockholder for the purpose of satisfying the prospectus delivery
requirements of the Securities Act.
Sales
Pursuant to Rule 144
Any
common shares covered by this prospectus which qualify for sale pursuant to Rule 144 under the Securities Act may be sold under
Rule 144 rather than pursuant to this prospectus.
Accordingly,
during such times as the selling stockholder may be deemed to be engaged in a distribution of the common stock, and therefore
be considered to be an underwriter, the selling stockholder must comply with applicable law and, among other things:
1.
may
    not engage in any stabilization activities in connection with our common stock;
2.
may not cover
    short sales by purchasing shares while the distribution is taking place; and
3.
may
    not bid for or purchase any of our securities or attempt to induce any person to purchase any of our securities other than
    as permitted under the Exchange Act.
Penny
Stock Rules
The SEC
has adopted regulations which generally define "penny stock" to be any equity security that has a market price (as defined)
of less than $4.00 per share or an exercise price of less than $4.00 per share, subject to certain exceptions. Our securities
are covered by the penny stock rules, which impose additional sales practice requirements on broker-dealers who sell to persons
other than established customers and "institutional accredited investors." The term "institutional accredited investor"
refers generally to those accredited investors who are not natural persons and fall into one of the categories of accredited investor
specified in subparagraphs (1), (2), (3), (7) or (8) of Rule 501 of Regulation D promulgated under the Securities Act, including
institutions with assets in excess of $5,000,000.
The penny
stock rules require a broker-dealer, prior to a transaction in a penny stock not otherwise exempt from the rules, to deliver a
standardized risk disclosure document in a form required by the Securities and Exchange Commission, obtain from the customer a
signed and dated acknowledgement of receipt of the disclosure document and to wait two business days before effecting the transaction.
The risk disclosure document provides information about penny stocks and the nature and level of risks in the penny stock market.
The broker-dealer also must provide the customer with current bid and offer quotations for the penny stock, the compensation of
the broker-dealer and its salesperson in the transaction and monthly account statements showing the market value of each penny
stock held in the customer's account.
18
The bid
and offer quotations, and the broker-dealer and salesperson compensation information, must be given to the customer orally or
in writing prior to effecting the transaction and must be given to the customer in writing before or with the customer's confirmation.
In addition, the penny stock rules require that prior to a transaction in a penny stock not otherwise exempt from these rules,
the broker-dealer must make a special written determination that the penny stock is a suitable investment for the purchaser and
receive the purchaser's written agreement to the transaction.
These disclosure
requirements may have the effect of reducing the level of trading activity in the secondary market for the stock that is subject
to these penny stock rules. Consequently, these penny stock rules may affect the ability of broker-dealers to trade our securities.
We believe that the penny stock rules discourage investor interest in and limit the marketability of our common stock.
State
Securities Laws
Under the
securities laws of some states, the common shares may be sold in such states only through registered or licensed brokers or dealers.
In addition, in some states the common shares may not be sold unless the shares have been registered or qualified for sale in
the state or an exemption from registration or qualification is available and is complied with.
Expenses
of Registration
We are bearing
all costs relating to the registration of the common stock. These expenses are estimated to be $5,000, including, but not limited
to, legal, accounting, printing and mailing fees. The selling stockholders, however, will pay any commissions or other fees payable
to brokers or dealers in connection with any sale of the common stock.
LEGAL MATTERS
The
validity of the common stock has been passed upon, for us, by Cane Clark LLP. A principal member of Cane Clark LLP has received
common stock of the Company in payment of compensation for legal services. Bryan Clark, the selling stockholders, is a partner
of Cane Clark LLP.
EXPERTS
The
financial statements of Xzeres Corp. as of February 28, 2013 and February 29, 2012, and for each of the two years in the period
ended February 28, 2013 and February 29, 2012, have been incorporated by reference herein and in the registration statement in
reliance upon the report of Silberstein Ungar, PLLC, an independent registered public accounting firm, upon the authority of said
firm as an expert in accounting and auditing.
19
INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE
The Securities
and Exchange Commission ("SEC") allows us to incorporate by reference certain of our publicly filed documents into
this prospectus, which means that such information is considered part of this prospectus. Information that we file with the SEC
subsequent to the date of this prospectus will automatically update and supersede this information. We incorporate by reference
the documents listed below and any future filings made by us with the SEC pursuant to Section 13(a), 13(c), 14 or 15(d) of the
Securities Exchange Act of 1934, as amended, until the selling stockholders have sold all of the shares offered hereby or such
shares have been deregistered.
The following
documents filed by us with the SEC are incorporated herein by reference:
•
Reference is
    made to our report on Form10-Q filed with the SEC on September 10, 2013, which is hereby incorporated by reference.
•
Reference is
    made to our report on Form10-K filed with the SEC on August 5, 2013, which is hereby incorporated by reference.
•
Reference is
    made to our report on Form 8-K filed with the SEC on April 24, 2013, which is hereby incorporated by reference.
•
Reference is
    made to our report on Form 8-K filed with the SEC on April 5, 2013, which is hereby incorporated by reference.
•
Reference is
    made to our report on Form 8-K filed with the SEC on February 5, 2013, which is hereby incorporated by reference.
•
Reference is
    made to our report on Form 8-K filed with the SEC on December 17, 2012, which is hereby incorporated by reference.
•
Reference is
    made to our report on Form 8-K filed with the SEC on November 21, 2012, which is hereby incorporated by reference.
•
Reference is
    made to our report on Form 8-K filed with the SEC on October 25, 2012, which is hereby incorporated by reference.
•
Reference is
    made to our report on Form 8-K filed with the SEC on August 9, 2012, which is hereby incorporated by reference.
•
The description
    of our common stock in our Registration Statement on Form 8-A, filed with the SEC on June 21, 2012, which is hereby incorporated
    by reference.
We
will provide without charge to each person to whom a copy of this prospectus has been delivered, on written or oral request, a
copy of any or all of the documents incorporated by reference in this prospectus, other than exhibits to such documents. Written
or oral requests for such copies should be directed to Steven Shum at the Company.
20
DISCLOSURE OF COMMISSION POSITION ON INDEMNIFICATION
FOR
SECURITIES ACT LIABILITIES
Section
145 of the Nevada General Corporation Law, as amended, authorizes the Registrant to indemnify any director or officer under certain
prescribed circumstances and subject to certain limitations against certain costs and expenses, including attorney's fees actually
and reasonably incurred in connection with any action, suit or proceeding, whether civil, criminal, administrative or investigative,
to which a person is a party by reason of being a director or officer of Xzeres Corp. if it is determined that such person acted
in accordance with the applicable standard of conduct set forth in such statutory provisions. The Registrant's Certificate
of Incorporation contains provisions relating to the indemnification of director and officers and our By-Laws extend such indemnities
to the full extent permitted by Nevada law. The Registrant may also purchase and maintain insurance for the benefit of any director
or officer, which may cover claims for which we could not indemnify such persons.
In
the event that a claim for indemnification against such liabilities, other than the payment by the Registrant of expenses incurred
or paid by one of the Registrant's directors, officers, or controlling persons in the successful defense of any action,
suit or proceeding, is asserted by one of the Registrant's directors, officers, or controlling person in connection with
the securities being registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling
precedent, submit to a court of appropriate jurisdiction the question whether such indemnification is against public policy as
expressed in the Securities Act of 1933, as amended, and it will be governed by the final adjudication of such issue.
ADDITIONAL INFORMATION AVAILABLE TO YOU
This prospectus
is part of a Registration Statement on Form S-8 that we filed with the SEC. Certain information in the Registration Statement
has been omitted from this prospectus in accordance with the rules of the SEC. We file annual, quarterly and special reports,
proxy statements and other information with the SEC. You can inspect and copy the Registration Statement as well as reports, proxy
statements and other information we have filed with the SEC at the public reference room maintained by the SEC at 100 F Street
N.E. Washington, D.C. 20549. You can obtain copies from the public reference room of the SEC at 100 F Street N.E. Washington,
D.C. 20549, upon payment of certain fees. You can call the SEC at 1-800-732-0330 for further information about the public reference
room. We are also required to file electronic versions of these documents with the SEC, which may be accessed through the SEC's
World Wide Web site at http://www.sec.gov.
21
XZERES
CORP.
300,000
SHARES OF COMMON STOCK
PROSPECTUS
September
20, 2013
PART
II
INFORMATION
NOT REQUIRED IN THE PROSPECUTS
Item
3. Incorporation of Documents by Reference.
The Registrant
hereby incorporates by reference into this Registration Statement the documents listed below. In addition, all documents subsequently
filed pursuant to Sections 13(a), 13(c), 14 and 15(d) of the Securities Exchange Act of 1934 (the "Exchange Act"),
prior to the filing of a post-effective amendment which indicates that all securities offered have been sold or which deregisters
all securities then remaining unsold, shall be deemed to be incorporated by reference into this Registration Statement and to
be a part hereof from the date of filing of such documents:
·
Reference is
    made to our report on Form10-Q filed with the SEC on September 10, 2013, which is hereby incorporated by reference.
·
Reference is
    made to our report on Form10-K filed with the SEC on August 5, 2013, which is hereby incorporated by reference.
·
Reference is
    made to our report on Form 8-K filed with the SEC on April 24, 2013, which is hereby incorporated by reference.
·
Reference is
    made to our report on Form 8-K filed with the SEC on April 5, 2013, which is hereby incorporated by reference.
·
Reference is
    made to our report on Form 8-K filed with the SEC on February 5, 2013, which is hereby incorporated by reference.
·
Reference is
    made to our report on Form 8-K filed with the SEC on December 17, 2012, which is hereby incorporated by reference.
·
Reference is
    made to our report on Form 8-K filed with the SEC on November 21, 2012, which is hereby incorporated by reference.
·
Reference is
    made to our report on Form 8-K filed with the SEC on October 25, 2012, which is hereby incorporated by reference.
·
Reference is
    made to our report on Form 8-K filed with the SEC on August 9, 2012, which is hereby incorporated by reference.
·
The description
    of our common stock in our Registration Statement on Form 8-A, filed with the SEC on June 21, 2012, which is hereby incorporated
    by reference.
22
Item
4. Description of Securities.
Not applicable.
Item
5. Interests of Named Experts and Counsel.
No expert
or counsel named in this Registration Statement as having prepared or certified any part of this Registration Statement or having
given an opinion upon the validity of the securities being registered or upon other legal matters in connection with the registration
or offering of the common stock was employed on a contingency basis or had, or is to receive, in connection with the offering,
a substantial interest, directly or indirectly, in the registrant or any of its parents or subsidiaries, provided that a principal
member of Cane Clark, LLP has received up to 300,000 shares of the Company's common stock being registered under this registration
statement to be issued as compensation for legal services.
Item
6. Indemnification of Directors and Officers.
Section
145 of the Nevada General Corporation Law, as amended, authorizes the Registrant to indemnify any director or officer under certain
prescribed circumstances and subject to certain limitations against certain costs and expenses, including attorney's fees actually
and reasonably incurred in connection with any action, suit or proceeding, whether civil, criminal, administrative or investigative,
to which a person is a party by reason of being a director or officer of Xzeres if it is determined that such person acted in
accordance with the applicable standard of conduct set forth in such statutory provisions. The Registrant's Certificate
of Incorporation contains provisions relating to the indemnification of director and officers and our By-Laws extend such indemnities
to the full extent permitted by Nevada law. The Registrant may also purchase and maintain insurance for the benefit of any director
or officer, which may cover claims for which we could not indemnify such persons.
Insofar
as indemnification for liabilities arising under the Securities Act of 1933, as amended, may be permitted to the Registrant's
directors, officers and controlling persons pursuant to the provisions above, or otherwise, the Registrant has been advised that
in the opinion of the Securities and Exchange Commission, such indemnification is against public policy as expressed in the Securities
Act of 1933, as amended, and is, therefore, unenforceable.
In the event
that a claim for indemnification against such liabilities, other than the payment by the Registrant of expenses incurred or paid
by one of the Registrant's directors, officers, or controlling persons in the successful defense of any action, suit or
proceeding, is asserted by one of the Registrant's directors, officers, or controlling person in connection with the securities
being registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question whether such indemnification is against public policy as expressed
in the Securities Act of 1933, as amended, and it will be governed by the final adjudication of such issue.
Item
7. Exemption from Registration Claimed.
Up to 300,000
shares of common stock being registered pursuant to this Registration Statement may be issued under the Consulting Agreement.
The 300,000 shares already issued were issued pursuant to the exemption from registration provided by Section 4(2) of the Securities
Act.
Item
8. Exhibits.
Exhibit
    Number
Description
5.1
Opinion
    of Cane Clark LLP
10.1
Consulting
    Agreement between Xzeres Corp. and Bryan Clark, dated April 1, 2013
23.1
Consent of Silberstein
    Ungar, PLLC
23.2
Consent of Cane
    Clark LLP (included in Exhibit 5.1)
24.1
Powers of Attorney
    (included on signature page)
23
Item
9. Undertakings.
(a) The
undersigned Registrant hereby undertakes:
1)	To
file, during any period in which offers or sales are being made, a post-effective amendment to this Registration Statement:
(i)	to
include any prospectus required by Section 10(a)(3) of the Securities Act of 1933;
(ii)	to
reflect in the prospectus any facts or events arising after the effective date of the Registration Statement (or the most recent
post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set
forth in the Registration Statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if
the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high
end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule
424(b) if, in the aggregate, the changes in volume and price represent no more than 20% change in the maximum aggregate offering
price set forth in the "Calculation of Registration Fee" table in the effective registration statement;
(iii)	to
include any material information with respect to the plan of distribution not previously disclosed in the Registration Statement
or any material change to such information in the Registration Statement.
Provided,
however, that paragraphs (a)(1)(i) and (a)(1)(ii) do not apply if this Registration Statement is on Form S-8, and the information
required to be included in a post-effective amendment by those paragraphs is contained in reports filed with or furnished to the
Commission by the Registrant pursuant to Section 13 or Section 15(d) of the Exchange Act of 1934 that are incorporated by reference
in this Registration Statement.
2)	That,
for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed
to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time
shall be deemed to be the initial bona fide offering thereof.
3)	To
remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at
the termination of the offering.
4)	The
undersigned Registrant hereby undertakes that, for purposes of determining any liability under the Securities Act of 1933, each
filing of the Registrant's annual report pursuant to Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934
(and, where applicable, each filing of an employee benefit plan's annual report pursuant to Section 15(d) of the Securities
Exchange Act of 1934) that is incorporated by reference in the Registration Statement shall be deemed to be a new registration
statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the
initial bona fide offering thereof.
5)	Insofar
as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling
persons of the Registrant pursuant to the foregoing provisions or otherwise, the Registrant has been advised that in the opinion
of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act of
1933, and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the
payment by the Registrant of expenses incurred or paid by a director, officer or controlling person of the Registrant in the successful
defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the
securities being registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling
precedent, submit to a court of appropriate jurisdiction the question of whether such indemnification by it is against public
policy as expressed in the Securities Act of 1933 and will be governed by the final adjudication of such issue.II-3
24
SIGNATURES
Pursuant
to the requirements of the Securities Act of 1933, the Registrant certifies that it has reasonable grounds to believe that it
meets all of the requirements for filing on Form S-8 and has duly caused this registration statement to be signed on its behalf
by the undersigned, thereunto duly authorized, in Wilsonville, OR, on September 20, 2013.
XZERES
    CORP.
By:
/s/ Frank
    Greco
Frank Greco
Chief Executive
    Officer, Principal Executive Officer and Director
XZERES
    CORP.
By:
/s/ Steven
    Shum
Steven Shum
Chief Financial
    Officer, Principal Financial Officer, Principal Accounting Officer and Director
25
POWER
OF ATTORNEY
Each
person whose signature appears below hereby constitutes and appoints Steven Shum, his or her true and lawful attorney-in-fact
and agents with full power of substitution and resubstitution, for him and in his name, place, and stead, in any and all capacities
to sign any and all amendments (including post-effective amendments) and additions to this Registration Statement, and to file
the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission,
and hereby grants to such attorney-in-fact and agents full power and authority to do and perform each and every act and thing
requisite and necessary to be done, as fully to all intents and purposes as he or she might or could do in person, hereby ratifying
and confirming all that said attorney-in-fact and agents or his substitute or substitutes may lawfully do or cause to be done
by virtue hereof.
Pursuant
to the requirements of the Securities Act of 1933, this registration statement has been signed by the following persons in the
capacities and on the date indicated:
By:
/s/
    Frank Greco
Frank Greco
Chief Executive
    Officer, Principal Executive Officer and Director
By:
/s/
    Steven Shum
Steven Shum
Chief Financial
    Officer, Principal Financial Officer, Principal Accounting Officer and Director
By:
/s/
    William Hagler
William Hagler
Director
By:
/s/
    Robert N. Garff
Robert N. Garff
Director
26
EXHIBIT
INDEX
Exhibit
    Number
Description
5.1
Opinion of Cane
    Clark LLP
10.1
Consulting Agreement
    between Xzeres Corp. and Bryan Clark, dated April 1, 2013
23.1
Consent of Silberstein
    Ungar, PLLC
23.2
Consent of Cane
    Clark LLP (included in Exhibit 5.1)
24.1
Powers of Attorney
    (included on signature page)
27