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<P STYLE="margin-top: 0; text-align: center; margin-bottom: 0">&nbsp;</P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>FORM S-1</B></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I>The Securities Act of 1933</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Zyrox Mining International, Inc. (formerly
Diversified Energy &amp; Fuel, Inc.)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Name of small business issuer in its charter)</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 32%; font-weight: bold; text-align: center">Nevada</TD>
    <TD STYLE="width: 38%; font-weight: bold; text-align: center">2821, 2673</TD>
    <TD STYLE="width: 30%; text-align: center">27-2052033</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">(State or jurisdiction of incorporation or</TD>
    <TD STYLE="text-align: center">(Primary Standard Industrial Classification</TD>
    <TD STYLE="text-align: center">(IRS Employer Identification No.)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">organization)</TD>
    <TD STYLE="text-align: center">Code Number)</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Zyrox Mining International, Inc.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>1800 NE 114 Street, Suite
609</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Miami, Florida 33181-3414</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Telephone (855) 229-9979</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">(Address and telephone number of Registrant&rsquo;s
principal executive offices)</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>9120 Double Diamond Parkway</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Reno NV 89521</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Telephone 800 648 0966, Fax: (775) 883
4874</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">(Name, address and telephone number of Registrant&rsquo;s
agent for service)</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><U>Please send copies of all communications
to:</U></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Joseph Lambert Pittera, Esq.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Law Offices of Joseph Lambert Pittera</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>2214 Torrance Boulevard</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Torrance, California 90501</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Telephone: (310) 328-3588</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Facsimile No. (310) 328-3063</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>APPROXIMATE DATE OF PROPOSED SALE TO
THE PUBLIC:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">As soon as practicable after this Registration
Statement becomes effective.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If any of the securities being registered
on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the
following box. <FONT STYLE="font-family: Wingdings">x</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If this Form is filed to register additional
securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities
Act Registration Statement number of the earlier effective Registration Statement for the same offering.</P>

<P STYLE="font: 10pt Wingdings; margin: 0pt 0; text-align: justify">&uml;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt">If this Form
is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities
Act Registration Statement number of the earlier effective Registration Statement for the same offering</FONT>. <FONT STYLE="font: 10pt Wingdings">&uml;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt">If this Form
is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities
Act Registration Statement number of the earlier effective Registration Statement for the same offering</FONT>. <FONT STYLE="font: 10pt Wingdings">&uml;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If delivery of the prospectus is expected
to be made pursuant to Rule 434, check the following box. <FONT STYLE="font-family: Wingdings">&uml;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Indicate by check mark whether the registrant
is a large accelerated filer, an accelerated filer, a non-accelerated filed or a smaller reporting company.</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 30%; text-align: justify">Large accelerated filer <FONT STYLE="font-family: Wingdings">&uml;</FONT></TD>
    <TD STYLE="width: 70%; text-align: justify">Accelerated filer <FONT STYLE="font-family: Wingdings">&uml;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">Non-accelerated filer <FONT STYLE="font-family: Wingdings">&uml;</FONT></TD>
    <TD STYLE="text-align: justify">Smaller reporting company <FONT STYLE="font-family: Wingdings">x</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="text-align: center">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">Proposed&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center">&nbsp;</TD><TD NOWRAP>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="text-align: center">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">Amount to</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">Proposed</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">Maximum</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center">&nbsp;</TD><TD NOWRAP>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-weight: bold; text-align: center">Title of Each Class</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">be</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">Maximum</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">Aggregate</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">Amount of</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-weight: bold; text-align: center">of Securities to be</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">Registered</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">Offering Price</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">Offering Price</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">Registration</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Registered</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">(1)</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Per Share ($)</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">($)(2)</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Fee($)</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 48%">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 1pt">Shares of Common Stock, $ Par Value $.001</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">50,000,000</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">$</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">.25</TD><TD STYLE="text-align: left; padding-bottom: 1pt">(1)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">$</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">12,500,000</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">$</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">$1,432.50</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
</TABLE>



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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 5%; vertical-align: top">1</TD>
    <TD>50,000,000 shares are being offered by a direct offering at the price of $.25 per share.</TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">2</TD>
    <TD>Estimated solely for purposes of calculating the registration fee in accordance with Rule 457 of the Securities Act, based upon the fixed price of the direct offering.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Registrant hereby amends this Registration
Statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment
which specifically states that this Registration Statement shall thereafter become effective in accordance with Section 8(a) of
the Securities Act of 1933 or until the Registration Statement shall become effective on such date as the Commission, acting pursuant
to said Section 8(a), may determine.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The information in this prospectus is not
complete and may be changed. Neither we, nor the selling shareholders, may sell these securities until the registration statement
filed with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell these securities and neither
we, nor the selling stockholders, are soliciting offers to buy these securities in any state where the offer of sale is not permitted.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Zyrox Mining International, Inc.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt"><B>1800 NE 114 Street, Suite 609</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt"><B>Miami, Florida 33181-3414</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Telephone (305) 891-8915 and (305) 607
9518</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">A Maximum of 50,000,000 Shares of Common
Stock</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">At $.25 Per Share</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Zyrox Mining International, Inc. (&ldquo;Company&rdquo;)
is registering a maximum of 50,000,000 shares of its common stock at a fixed price of $.25 per share for sale to the general <FONT STYLE="color: windowtext">public
in an officer/director best effort offering</FONT>. The Issuer will not be allowed access to any funds until the minimum of $6,250,000
has been deposited into its escrow account signifying the sale of at least a minimum of 25,000,000 common shares.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company is a development stage start-up,
and currently has limited operations. Any investment in the shares offered herein involves a high degree of risk. You should only
purchase shares if you can afford a complete loss of your investment.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Prior to this offering, there has been
no public market for Zyrox Mining International, Inc.&rsquo;s common stock.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">BEFORE INVESTING, YOU SHOULD CAREFULLY
READ THIS PROSPECTUS AND, PARTICULARLY, THE RISK FACTORS SECTION, BEGINNING ON PAGE 7.</P>

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

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Number&nbsp;of&nbsp;Shares</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Offering&nbsp;Price</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Underwriting&nbsp;Discounts<BR>
&amp;<BR>
Commissions</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Proceeds&nbsp;to&nbsp;the<BR> Company</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 48%">Per Share</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">1</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right"></TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">0.00</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right"></TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>Maximum</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">50,000,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">$.25</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.00</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">12,500,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Minimum</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">25,000,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">$.25</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.00</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">6,250,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The information in this prospectus is not
complete and may be changed. Zyrox Mining International, Inc. may not sell these securities until the registration statement filed
with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell these securities and it is not
soliciting an offer to buy these securities in any state where the offer or sale is not permitted.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="color: windowtext">Zyrox Mining
International, Inc. does not plan to use this offering prospectus before the effective date</FONT><FONT STYLE="color: red">.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Subject to Completion, Dated September ___,
2012</P>

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD NOWRAP STYLE="width: 90%; font-weight: bold">TABLE OF CONTENTS</TD>
    <TD NOWRAP STYLE="width: 10%; vertical-align: bottom">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; text-align: center">PAGE</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD>SUMMARY OF PROSPECTUS</TD>
    <TD NOWRAP STYLE="text-align: center">5</TD></TR>
<TR STYLE="background-color: White">
    <TD>COMPANY OVERVIEW</TD>
    <TD NOWRAP STYLE="text-align: center">5</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD>THE OFFERING</TD>
    <TD NOWRAP STYLE="text-align: center">5</TD></TR>
<TR STYLE="background-color: White">
    <TD>RISK FACTORS</TD>
    <TD NOWRAP STYLE="text-align: center">6</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD>RISKS ASSOCIATED WITH OUR COMPANY</TD>
    <TD NOWRAP STYLE="text-align: center">6</TD></TR>
<TR STYLE="background-color: White">
    <TD>RISKS ASSOCIATED WITH THIS OFFERING</TD>
    <TD NOWRAP STYLE="text-align: center">9</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD>USE OF PROCEEDS</TD>
    <TD NOWRAP STYLE="text-align: center">10</TD></TR>
<TR STYLE="background-color: White">
    <TD>DETERMINATION OF OFFERING PRICE</TD>
    <TD NOWRAP STYLE="text-align: center">10</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD>DILUTION OF THE PRICE YOU PAY FOR YOUR SHARES</TD>
    <TD NOWRAP STYLE="text-align: center">10</TD></TR>
<TR STYLE="background-color: White">
    <TD>PLAN OF DISTRIBUTION</TD>
    <TD NOWRAP STYLE="text-align: center">11</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD>OFFERING WILL BE SOLD BY OUR OFFICER AND DIRECTOR</TD>
    <TD NOWRAP STYLE="text-align: center">11</TD></TR>
<TR STYLE="background-color: White">
    <TD>TERMS OF THE OFFERING</TD>
    <TD NOWRAP STYLE="text-align: center">11</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD>DEPOSIT OF OFFERING PROCEEDS</TD>
    <TD NOWRAP STYLE="text-align: center">12</TD></TR>
<TR STYLE="background-color: White">
    <TD>PROCEDURES FOR AND REQUIREMENTS FOR SUBSCRIBING</TD>
    <TD NOWRAP STYLE="text-align: center">12</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD>DESCRIPTION OF SECURITIES</TD>
    <TD NOWRAP STYLE="text-align: center">12</TD></TR>
<TR STYLE="background-color: White">
    <TD NOWRAP>COMMON STOCK</TD>
    <TD NOWRAP STYLE="text-align: center">12</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD>NON-CUMULATIVE VOTING</TD>
    <TD NOWRAP STYLE="text-align: center">12</TD></TR>
<TR STYLE="background-color: White">
    <TD>CASH DIVIDENDS</TD>
    <TD NOWRAP STYLE="text-align: center">12</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD>INTEREST OF NAMED EXPERTS AND COUNSEL</TD>
    <TD NOWRAP STYLE="text-align: center">13</TD></TR>
<TR STYLE="background-color: White">
    <TD>DESCRIPTION OF OUR BUSINESS</TD>
    <TD NOWRAP STYLE="text-align: center">13</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD>GENERAL INFORMATION</TD>
    <TD NOWRAP STYLE="text-align: center">13</TD></TR>
<TR STYLE="background-color: White">
    <TD>INDUSTRY BACKGROUND</TD>
    <TD NOWRAP STYLE="text-align: center">13</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD>PRINCIPAL PRODUCTS AND THEIR MARKETS</TD>
    <TD NOWRAP STYLE="text-align: center">13</TD></TR>
<TR STYLE="background-color: White">
    <TD>DISTRIBUTION METHODS</TD>
    <TD NOWRAP STYLE="text-align: center">16</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD>COMPETITION</TD>
    <TD NOWRAP STYLE="text-align: center">17</TD></TR>
<TR STYLE="background-color: White">
    <TD NOWRAP>SOURCES AND AVAILABILITY OF PRODUCTS</TD>
    <TD NOWRAP STYLE="text-align: center">18</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD NOWRAP>DEPENDENCE ON ONE OR A FEW MAJOR CUSTOMERS</TD>
    <TD NOWRAP STYLE="text-align: center">19</TD></TR>
<TR STYLE="background-color: White">
    <TD NOWRAP>PATENTS AND TRADEMARKS</TD>
    <TD NOWRAP STYLE="text-align: center">19</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD NOWRAP>NEED FOR ANY GOVERNMENT APPROVAL OR PRINCIPAL PRODUCTS</TD>
    <TD NOWRAP STYLE="text-align: center">20</TD></TR>
<TR STYLE="background-color: White">
    <TD NOWRAP>GOVERNMENT AND INDUSTRY REGULATION</TD>
    <TD NOWRAP STYLE="text-align: center">20</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD NOWRAP>ENVIRONMENTAL LAWS</TD>
    <TD NOWRAP STYLE="text-align: center">20</TD></TR>
<TR STYLE="background-color: White">
    <TD NOWRAP>EMPLOYEES AND EMPLOYMENT AGREEMENTS</TD>
    <TD NOWRAP STYLE="text-align: center">20</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD NOWRAP>LEGAL PROCEEDINGS</TD>
    <TD NOWRAP STYLE="text-align: center">20</TD></TR>
<TR STYLE="background-color: White">
    <TD NOWRAP>MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS</TD>
    <TD NOWRAP STYLE="text-align: center">20</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD NOWRAP>PENNY STOCK RULES</TD>
    <TD NOWRAP STYLE="text-align: center">21</TD></TR>
<TR STYLE="background-color: White">
    <TD NOWRAP>REPORTS</TD>
    <TD NOWRAP STYLE="text-align: center">22</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD NOWRAP>STOCK TRANSFER AGENT</TD>
    <TD NOWRAP STYLE="text-align: center">22</TD></TR>
<TR STYLE="background-color: White">
    <TD NOWRAP>FINANCIAL STATEMENTS</TD>
    <TD NOWRAP STYLE="text-align: center">22</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD NOWRAP>MANAGEMENT&rsquo;S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION</TD>
    <TD NOWRAP STYLE="text-align: center">22</TD></TR>
<TR STYLE="background-color: White">
    <TD NOWRAP>MANAGEMENT&rsquo;S PLAN OF OPERATION</TD>
    <TD NOWRAP STYLE="text-align: center">22</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD NOWRAP>GOING CONCERN</TD>
    <TD NOWRAP STYLE="text-align: center">22</TD></TR>
<TR STYLE="background-color: White">
    <TD NOWRAP>RESULTS OF OPERATIONS</TD>
    <TD NOWRAP STYLE="text-align: center">22</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD NOWRAP>PROPOSED MILESTONES TO IMPLEMENT BUSINESS OPERATIONS</TD>
    <TD NOWRAP STYLE="text-align: center">23</TD></TR>
<TR STYLE="background-color: White">
    <TD NOWRAP>CRITICAL ACCOUNTING POLICIES</TD>
    <TD NOWRAP STYLE="text-align: center">23</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD NOWRAP>DIRECTOR, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS</TD>
    <TD NOWRAP STYLE="text-align: center">25</TD></TR>
<TR STYLE="background-color: White">
    <TD NOWRAP>BACKGROUND INFORMATION ABOUT OUR OFFICERS AND DIRECTORS</TD>
    <TD NOWRAP STYLE="text-align: center">26</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD NOWRAP>CORPORATE GOVERNANCE GUIDELINES</TD>
    <TD NOWRAP STYLE="text-align: center">26</TD></TR>
<TR STYLE="background-color: White">
    <TD NOWRAP>SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE</TD>
    <TD NOWRAP STYLE="text-align: center">26</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD NOWRAP>EXECUTIVE COMPENSATION</TD>
    <TD NOWRAP STYLE="text-align: center">27</TD></TR>
<TR STYLE="background-color: White">
    <TD NOWRAP>OPTION GRANTS</TD>
    <TD NOWRAP STYLE="text-align: center">27</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD NOWRAP>AGGREGATED OPTION EXERCISES AND FISCAL YEAR-END OPTION VALUE</TD>
    <TD NOWRAP STYLE="text-align: center">27</TD></TR>
<TR STYLE="background-color: White">
    <TD NOWRAP>LONG-TERM INCENTIVE PLAN (&ldquo;LTIP&rdquo;) AWARDS</TD>
    <TD NOWRAP STYLE="text-align: center">27</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="background-color: rgb(204,255,204)">
    <TD NOWRAP STYLE="width: 90%">COMPENSATION OF DIRECTORS</TD>
    <TD NOWRAP STYLE="width: 10%; text-align: center">28</TD></TR>
<TR STYLE="background-color: White">
    <TD NOWRAP>EMPLOYMENT CONTRACTS AND OFFICERS&rsquo; COMPENSATION</TD>
    <TD NOWRAP STYLE="text-align: center">28</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD NOWRAP>SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT</TD>
    <TD NOWRAP STYLE="text-align: center">28</TD></TR>
<TR STYLE="background-color: White">
    <TD NOWRAP>FUTURE SALES BY EXISTING STOCKHOLDERS</TD>
    <TD NOWRAP STYLE="text-align: center">28</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD NOWRAP>CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS</TD>
    <TD NOWRAP STYLE="text-align: center">28</TD></TR>
<TR STYLE="background-color: White">
    <TD NOWRAP>INDEMNIFICATION</TD>
    <TD NOWRAP STYLE="text-align: center">29</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD NOWRAP>AVAILABLE INFORMATION</TD>
    <TD NOWRAP STYLE="text-align: center">29</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>ABOUT THIS PROSPECTUS</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">You should rely only on the information
contained in this prospectus. Neither we, nor the selling shareholders have authorized anyone to provide you with different or
additional information. We take no responsibility for, and can provide no assurance as to the reliability of, any other information
that others may give you. This prospectus is not an offer to sell nor is it seeking an offer to buy shares of our common stock
in any jurisdiction where the offer or sale is not permitted. The information contained in this prospectus is correct only as of
the date of this prospectus, regardless of the time of the delivery of this prospectus or any sale of shares of our common stock.</P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">You should read the following summary together
with the more detailed business information, financial statements and related notes that appear elsewhere in this prospectus. In
this prospectus, unless the context otherwise denotes, references to &ldquo;we,&rdquo; &ldquo;us,&rdquo; &ldquo;our,&rdquo; and
&ldquo;Company&rdquo; are to Zyrox Mining International, Inc.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="color: windowtext">Zyrox Mining
International, Inc. (formerly Diversified Energy &amp; Fuel, Inc. until August 15, 2012)</FONT> was incorporated in the State of
Nevada on June 3, 2009. Zyrox Mining International, Inc. began formal operations on June 3, 2009, with the principle purpose of
developing, marketing and selling software products through the Internet, and to provide web based services for individuals and
small business. During 2010, this business was discontinued and management focused on developing a biodegradable plastic opportunity.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On November 8, 2010, the Company entered
into an agreement to acquire 100% of the Membership Interests of WSVPA Bio Products Incorporated, a Nevada LLC in consideration
for 102,238,200 shares of common stock. After completion of their due diligence, WSPVA formally closed on the transaction on May
12, 2012. The Company subsequently received 500,000,000 Class &quot;A&quot; membership units and 1,000,000 Class &ldquo;B&rdquo;
membership units representing 100% of the membership interest of WSPVA (dissolvingplastic.com) in return for 102,238,200 common
shares of the Company and WSPVA is now a wholly owned subsidiary of the Company.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On August 17, 2010, the then Chief Executive
Officer resigned and appointed Carl H. Kruse as sole Director and Chief Executive Officer. Carl H. Kruse became the majority shareholder
at that time by virtue of a Stock Purchase Agreement with the majority shareholder, resulting in a change of control of the Issuer.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are a development stage company and
have not yet opened for business or generated any revenues. Our limited start-up operations have consisted of the formation of
our business plan and identification of our target market. We will require the funds from this offering in order to fully implement
our business plan as discussed in the &ldquo;Plan of Operation&rdquo; section of this prospectus.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our principal and executive offices are located at 1800 NE 114<SUP>th</SUP>
Street, Suite 609, Miami, Florida 33181 &ndash; 3414 with telephone number of (855) 229-9979. Our registered statutory office is
located at 9120 Double Diamond Parkway, Reno, Nevada 89521. Our fiscal year-end is May 31.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Following is a brief summary of this offering.
Please see the Plan of Distribution section for a more detailed description of the terms of the offer.</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 40%; vertical-align: top">Securities Being Offered:</TD>
    <TD STYLE="width: 60%; vertical-align: bottom">50,000,000 shares of common stock, par value $.001, at a price of $.25 per share.</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">Offering Price Per Share:</TD>
    <TD STYLE="vertical-align: bottom">$.25 for the 50,000,000 common shares.</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">Offering Period:</TD>
    <TD STYLE="vertical-align: bottom">The shares are being offered for a period not to exceed 180 days. In the event we do not sell all of the shares before the expiration date of the offering, all funds raised will be promptly returned to the investors, without interest or deduction.</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">Net Proceeds to Our Company:</TD>
    <TD STYLE="vertical-align: bottom">$12,500,000 maximum and $6,250,000 minimum.</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">Use of Proceeds:</TD>
    <TD STYLE="vertical-align: bottom">See Use of Proceeds</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">Number of Common Shares Outstanding Before the Offering:</TD>
    <TD STYLE="vertical-align: bottom">102,238,200</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">Number of Common Shares Outstanding After the Offering:</TD>
    <TD STYLE="vertical-align: bottom">152,238,200</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Investment in the securities offered hereby
involves certain risks and is suitable only for investors of substantial financial means. Prospective investors should carefully
consider the following risk factors in addition to the other information contained in this prospectus, before making an investment
decision concerning the common stock.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>RISKS ASSOCIATED WITH OUR COMPANY</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Lack of Profitable Operating History</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company does not have a history of
profitable operation. There is no assurance that the Company will ever be profitable. The Company&rsquo;s ability to achieve profitability
will depend upon a number of factors, including, but not limited to, whether the Company:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&bull;&nbsp;has funds available for working
capital, project development and sales and marketing efforts;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&bull;&nbsp;has funds for the continuous
upgrading of its production operations and facilities;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&bull;&nbsp;achieves the projected sales
revenues;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&bull;&nbsp;controls the Company&rsquo;s
operating expenses;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&bull;&nbsp;continues to attract new business;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&bull; withstands competition in the Company&rsquo;s
marketplace.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company&rsquo;s competitors are
rapidly changing and may be well capitalized and financially stronger than Zyrox Mining International, Inc.&rsquo;s and
competitors could reproduce the Company&rsquo;s business model without significant barriers to entry.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>The Company&rsquo;s activities may require
additional financing, which may not be obtainable.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company had limited cash deposits.
Based on the Company&rsquo;s expectations as to future performance, the Company considers these resources and existing and anticipated
credit facilities, to be adequate to meet the Company&rsquo;s anticipated cash and working capital needs at least through December
31, 2012. The Company, however, expects to be able to raise capital to fund the Company&rsquo;s operations, current and future
acquisitions and investment in new program development. The Company may also need to raise additional capital to fund expansion
of the Company&rsquo;s business by way of one or more strategic acquisitions. Unless the Company&rsquo;s results improve significantly,
it is doubtful that the Company will be able to obtain additional capital for any purpose if and when the Company needs it.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>The Company&rsquo;s Common Stock may
be thinly traded, and the public market may provide little or no liquidity for holders of the Company&rsquo;s Common Stock.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Purchasers of shares of the Company&rsquo;s
Common Stock may find it difficult to resell their shares at prices quoted in the market or at all. There is currently a limited
volume of trading in the Company&rsquo;s Common Stock, and on many days there has been no trading activity at all. Due to the historically
low trading price of the Company&rsquo;s Common Stock, many brokerage firms may be unwilling to effect transactions in the Company&rsquo;s
Common Stock, particularly because low-priced securities are subject to an SEC rule that imposes additional sales practice requirements
on broker-dealers who sell low-priced securities (generally those below $5.00 per share). The Company cannot predict when or whether
investor interest in the Company&rsquo;s Common Stock might lead to an increase in its market price or the development of a more
active trading market or how liquid that market might become.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>The Company depends heavily on the Company&rsquo;s
senior management who may be difficult to replace.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company believes that the Company&rsquo;s
future success depends to a significant degree on the skills, experience and efforts of its Chairman, CEO and other key executives.
Any of these executives would be difficult to replace. While all of them have incentives to remain with the Company, they are not
bound by employment contracts, and there is no assurance that either of them will not elect to terminate their services to us at
any time.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Increasing the Company&rsquo;s business
depends on the Company&rsquo;s ability to increase demand for the Company&rsquo;s products and services.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">While the Company believes that there is
a market for its planned increase in the Company&rsquo;s products and services, there is no guarantee that the Company will be
successful in its choice of product or technology or that consumer demand will increase as the Company anticipates.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>The Company may be exposed to significant
costs of defense and damages in litigation stemming from current unresolved legal proceedings undertaken in the future by and against
the Company.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company could be subject of legal proceedings
against the Company that could give rise to significant exposure in costs and damages.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>The Company&rsquo;s ability to operate
and compete effectively requires that the Company hires and retain skilled marketing and technical personnel, who have been in
short supply from time to time and may be unavailable to us when the Company needs them.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company&rsquo;s business requires us
to be able to continuously attract, train, motivate and retain highly skilled employees, particularly marketing and other senior
management personnel. The Company&rsquo;s failure to attract and retain the highly trained personnel who are integral to the Company&rsquo;s
sales, development and distribution processes may limit the rate at which the Company can generate sales. The Company&rsquo;s inability
to attract and retain the individuals the Company need could adversely impact the Company&rsquo;s business and the Company&rsquo;s
ability to achieve profitability.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>The Company may suffer from a business
interruption and continuity of its on-going operations might be affected.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company&rsquo;s ability to implement
its business plans may be adversely affected by any business interruption that will affect the continuity of its operations. While
the Company may take reasonable steps to protect itself, there could be interruptions from computer viruses, server attacks, network
or production failures and other potential interruptions that would be beyond the Company&rsquo;s reasonable control. There can
be no assurance that the Company&rsquo;s efforts will prevent all such interruptions. Any of the foregoing events may result in
an interruption of services and a breach of the Company&rsquo;s obligations to its clients and customers or otherwise have a material
adverse effect on the business of the Company.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Macro-economic factors may impede business,
access to finance or may increase the cost of finance or other operational costs of the Company.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Changes in the United States and global
financial and equity markets, including market disruptions or interest rate fluctuations, inflation changes, may make it more
difficult for the Company to obtain financing for its operations or investments or increase the cost of obtaining financing and
event in the Company being delayed in attaining its projections. Borrowing costs can be affected by short and long term debt ratings
assigned by independent ratings agencies which are based, in significant part, on the Company&rsquo;s performance as measured
by credit metrics such as interest coverage and leverage ratios. Decrease in these ratios or debt ratings would increase the Company&rsquo;s
cost of borrowings and make it more difficult to obtain financing.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>The Company is making the offering on
a best efforts basis and there is no assurance that the offering will be sold.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">There is no assurance that the Company&rsquo;s
offering will be sold, in whole or even in part. The proposed use of net proceeds assumes a sale of the full amount of the offering.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>The Board of the Company has full discretion
to re-allocate the Proceeds.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company intends to use the net proceeds
from this offering for the purposes and in the amounts described &lsquo;USE OF PROCEEDS&rsquo;. The Company&rsquo;s estimates of
its allocation of the net proceeds of the offering are based upon the current state of its business operations, its current plans
and current economic and industry conditions. These estimates are subject to change based on material factors such as delays in
project development, unanticipated or changes in the level of competition, adverse market trends and new business opportunities.
Thus the Company will have broad discretion to make material changes in the allocation of the proceeds.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>There is a limitation on the officers
and directors liability.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The articles of the Company limit the personal
liability of directors and officers for breach of fiduciary duty and the Company provides an indemnity for expenses and liabilities
to any person who is threatened or made a party to any legal action by reason of the fact that the person is or was a director
or officer of the Company unless the action is proven that the person was liable to be negligent or misconduct in the performance
of their duty to the Company.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>The loss of our key officers or directors
may raise substantial doubt as to the continued viability of the Company</B>.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Zyrox Mining International, Inc.&rsquo;s
operations depend on the efforts of key officers and directors and the loss of their services may irreparably harm the Company
in such a manner that it may not be able to overcome any such loss in management.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Purchasers in this offering will have
limited control over decision making because the new group of shareholders will control only 33% of the currently issued and outstanding
common stock.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Such limited control may also make it difficult
for stockholders to receive a premium for their shares of the Company in the event the Company enters into transactions, which
require stockholder approval. This limited concentration of ownership limits the power to exercise control by the minority shareholders.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Investors may lose their entire investment
if Zyrox Mining International, Inc. fails to implement its business plan</B>.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Zyrox Mining International, Inc. expects
to face substantial risks, uncertainties, expenses, and difficulties because it is a development-stage company. <FONT STYLE="color: windowtext">Zyrox
Mining International, Inc. (formerly Diversified Energy &amp; Fuel, Inc.)</FONT> was formed in Nevada on June 3, 2009. Zyrox Mining
International, Inc. has no demonstrable operations record of substance upon which you can evaluate the Company&rsquo;s business
and prospects. Zyrox Mining International, Inc. prospects must be considered in light of the risks, uncertainties, expenses and
difficulties frequently encountered by companies in their early stages of development. Zyrox Mining International, Inc. cannot
guarantee that it will be successful in accomplishing its objectives.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of the date of this prospectus, Zyrox
Mining International, Inc. has had only limited start-up operations and has generated very small revenues. In addition, Zyrox Mining International, Inc.&rsquo;s lack of operating capital could negatively affect
the value of its common shares and could result in the loss of your entire investment.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Because of our new business model, we
have not proven our ability to generate profit, and any investment in Zyrox Mining International, Inc. is risky</B>.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have very little meaningful operating
history so it will be difficult for you to evaluate an investment in our stock. We have not sold any of our products to date. We
cannot assure that we will ever be profitable. Since we have not proven the essential elements of profitable operations, you will
be furnishing venture capital to us and will bear the risk of complete loss of your investment in the event we are not successful.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>We may be unsuccessful in monitoring new trends.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our net revenue might decrease with time.
Consequently, our future success depends on our ability to identify and monitor trends and the development of new markets. To establish
market acceptance of a new technologies, we will dedicate significant resources to research and development, production and sales
and marketing. We will incur significant costs in developing, commissioning and selling new products, which often significantly
precedes meaningful revenues from its sale. Consequently, new business can require significant time and investment to achieve profitability.
Prospective investors should note, however, that there can be no assurance that our efforts to introduce new products or other
services will be successful or profitable.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>We may face distribution and product risks.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our future financial results depend in
large part on our ability to develop relationships with our customers. Any disruption in our relationships with our future customers
could adversely affect our financial performance.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>We may face claims of infringement on intellectual property
rights.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Other parties may assert claims of ownership
or infringement or assert a right to payment with respect to the exploitation of certain intellectual properties against us. In
many cases, the rights owned or being acquired by us are limited in scope, do not extend to exploitation in all present or future
uses or in perpetuity. We cannot assure you that we will prevail in any of these claims. In addition, our ability to demonstrate,
maintain or enforce these rights may be difficult. The inability to demonstrate or difficulty in demonstrating our ownership or
license rights in these technologies may adversely affect our ability to generate revenue from or use of these intellectual property
rights.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>If our operating costs exceed our estimates,
it may impact our ability to continue operations</B>.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We believe we have accurately estimated
our needs for the next twelve months. It is possible that we may need to purchase additional equipment, hire additional personnel,
and further develop new business ventures, or that our operating costs will be higher than estimated. If this happens, it may impact
our ability to generate revenue and we would need to seek additional funding. We intend to establish our initial client base via
existing relationships that our directors and officers have established in past business relationships. Should these relationships
not generate the anticipated volume of business, any unanticipated costs would diminish our working capital.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Competitors with more resources may
force us out of business</B>.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Competition in our sectors of business
come from a variety of factors, including quality, timely commissioning of new projects, product positioning, pricing and brand
name recognition. The principal competitors for our business may do this better than we can. Each of these competitors has substantially
greater financial resources than we do. New technologies may also present substantial competition. We may be unsuccessful in competing
with these competitors, which may materially harm our business.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Zyrox Mining International, Inc. may
not be able to attain profitability without additional funding, which may be unavailable</B>.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Zyrox Mining International, Inc. has limited
capital resources. Unless Zyrox Mining International, Inc. begins to generate sufficient revenues to finance operations as a going
concern, Zyrox Mining International, Inc. may experience liquidity and solvency problems. Such liquidity and solvency problems
may force Zyrox Mining International, Inc. to cease operations if additional financing is not available.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>RISKS ASSOCIATED WITH THIS OFFERING</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>You may not be able to sell your shares
in Zyrox Mining International, Inc. because there is a limited public market for Zyrox Mining International, Inc. stock</B>.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">There is a limited public market for Zyrox
Mining International, Inc. common stock. Therefore, the current and potential market for Zyrox Mining International, Inc. common
stock is limited. Zyrox Mining International, Inc. cannot guarantee that a meaningful trading market will develop.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The trading price of Zyrox Mining International,
Inc. common stock could be subject to wide fluctuations in response to various events or factors, many of which are or will be
beyond Zyrox Mining International, Inc. control. In addition, the stock market may experience extreme price and volume fluctuations,
which, without a direct relationship to the operating performance, may affect the market price of Zyrox Mining International, Inc.
stock.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Liquidity on the OTC Bulletin Board
is limited, and the Company may be unable to obtain listing of the Company&rsquo;s Common Stock on a more liquid market.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company&rsquo;s Common Stock is currently
quoted on the OTC:PK Board, which provides significantly less liquidity than a securities exchange (such as the American or New
York Stock Exchange) or an automated quotation system (such as the Nasdaq National or SmallCap Market). There is uncertainty that
any of the Company&rsquo;s securities will ever be accepted for listing on an automated quotation system or securities exchange.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Investors may have difficulty liquidating
their investment because Zyrox Mining International, Inc.&rsquo;s stock will be subject to Penny Stock Regulation</B>.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The SEC has adopted rules that regulate
broker/dealer practices in connection with transactions in penny stocks. The rules, in part, require broker/dealers to provide
penny stock investors with increased risk disclosure documents and make a special written determination that a penny stock is a
suitable investment for the purchaser and receive the purchaser&rsquo;s written agreement to the transaction. These heightened
disclosure requirements may have the effect of reducing the number of broker/dealers willing to make a market in Zyrox Mining International,
Inc. shares, thereby reducing the level of trading activity in any secondary market that may develop for Zyrox Mining International,
Inc. shares. Consequently, customers in Zyrox Mining International, Inc. securities may find it difficult to sell their securities,
if at all.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Investors in this offering will bear
a substantial risk of loss due to immediate increase and subsequent dilution.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The principal shareholders of Zyrox Mining
International, Inc. own 27% of the outstanding shares of Zyrox Mining International, Inc. common stock. Further issues of stock
will mean that shareholders may experience substantial &ldquo;dilution.&rdquo; &nbsp;Therefore, the investors in this offering
will bear a substantial portion of the risk of loss. Please refer to the section titled &ldquo;Dilution&rdquo; herein.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">When all of the shares are sold the gross proceeds from this
offering will be $12,500,000. <FONT STYLE="color: windowtext">Our management will have broad discretion to allocate the net proceeds
from this offering. Actual expenditures may vary substantially from our estimates. We may find it necessary or advisable to use
portions of the proceeds for other purposes. </FONT>We expect to disburse the proceeds from this offering in the priority set forth
below, within the first 12 months after successful completion of this offering:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 70%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 87%; text-align: left">Proceeds to Us:</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">12,500,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 9pt">Property &amp; Equipment</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">7,150,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9pt">Purchase of Zyrox Mining Co. Ltd.</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1,250,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 9pt">Retirement of Liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">500,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 9pt">Working Capital</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">3,600,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 9pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9pt">Total Net Proceeds</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">12,500,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In the event we are only able to raise the minimum offering
proceeds of $6,250,000.00 then the Issuer shall use the funds in the following manner: $2,325,000 for property and equipment, $1,250,000
for purchase of Zyrox Mining Co., Ltd., $500,000 for retirement of liabilities, and $2,175,000 for working capital.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>DETERMINATION OF OFFERING PRICE</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The offering price of the 50,000,000 shares
of common stock offered for sale at the value of $.25 per share bears no relationship to any objective criterion of value and bears
no relationship to Zyrox Mining&rsquo;s assets, book value, historical earnings, or net worth. In determining the offering price,
management considered such factors as the prospects, if any, for similar companies, anticipated results of operations, present
financial resources and the likelihood of acceptance of this offering. Accordingly, the offering price should not be considered
an indication of the actual value of our securities.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>DILUTION OF THE PRICE YOU PAY FOR YOUR SHARES</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&ldquo;Dilution&rdquo; represents the
difference between the offering price of the shares of common stock and the net book value per share of common stock
immediately after completion of the offering. &ldquo;Net Tangible Book Value&rdquo; is the amount that results from
subtracting total liabilities and intangible assets from total assets. In this offering, the level is increased
as a result of the relatively high book value of Zyrox Mining International, Inc.&rsquo;s issued and outstanding stock<FONT STYLE="color: red">. </FONT><FONT STYLE="color: windowtext; background-color: yellow">With
102,238,200 common shares issued, the net book value of Zyrox Mining International, Inc. before the offering is $ .94.
Assuming all 50,000,000 shares offered are sold, and in effect Zyrox Mining International, Inc. receives the maximum
estimated proceeds of this offering from shareholders, Zyrox Mining International, Inc. net book value will be approximately
$ .63 per share. Therefore, any investor will incur an immediate and substantial increase of approximately $ .39 per share,
while the Zyrox Mining International, Inc.&rsquo;s present stockholders will receive a decrease of $ .30 per share in the net
tangible book value of the shares that they hold. This will result in a 256% increase for purchasers of stock in this
offering.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="background-color: yellow">The
following table illustrates the dilution to the purchaser of the common stock in this offering. This table represents a comparison
of the various prices paid by the individual who purchased shares in Zyrox Mining International, Inc. previously:</FONT></P>

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 87%">Book Value Per Share Before the Offering</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">.94</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>Book Value Per Share After the Offering</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">.64</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Net Decrease to Original Shareholders</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">.30</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Increase in Investment to New Shareholders</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">.39</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Increase to New Shareholders (%)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">256</TD><TD STYLE="text-align: left">%</TD></TR>
</TABLE>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>OFFERING WILL BE SOLD BY OUR OFFICER
AND DIRECTOR</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This is a self-underwritten offering. This
Prospectus is part of a Prospectus that permits our officer and director to sell Shares directly to the public, with no commission
or other remuneration payable for any Shares that are sold. There are no plans or arrangements to enter into any contracts or agreements
to sell the Shares with a broker or dealer. Mr. Carl H. Kruse, our President and director, will sell the Shares and intends to
offer them to friends, family members and business acquaintances. In offering the securities on our behalf, they will rely on the
safe harbor from broker dealer registration set out in Rule 3a4-1 under the Securities Exchange Act of 1934.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">They will register as a broker-dealer pursuant
to Section 15 of the Securities Exchange Act of 1934, in reliance upon Rule 3a4-1, which sets forth those conditions under which
a person associated with an Issuer may participate in the offering of the Issuer&rsquo;s securities and not be deemed to be a broker-dealer.</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.5in">a.</TD>
    <TD>Our officers and directors are not subject to a statutory disqualification, as that term is defined in Section 3(a)(39) of the Act, at the time of their participation; and</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>b.</TD>
    <TD>Our officers and directors will not be compensated in connection with their participation by the payment of commissions or other remuneration based either directly or indirectly on transactions in securities; and</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>c.</TD>
    <TD>Our officers and directors are not, nor will they be at the time of their participation in the offering, an associated person of a broker-dealer; and</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>d.</TD>
    <TD>Our officers and directors meet the conditions of paragraph (a)(4)(ii) of Rule 3a4-1 of the Exchange Act, in that they (A) primarily perform, or intend primarily to perform at the end of the offering, substantial duties for or on behalf of our company, other than in connection with transactions in securities; and (B) are not a broker or dealer, or been associated person of a broker or dealer, within&nbsp; the preceding twelve months; and (C) has not participated in selling and offering securities for any Issuer more than once every twelve months other than in reliance on Paragraphs (a)(4)(i) and (a)(4)(iii).</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our officers, directors, control persons and affiliates of
same do not intend to purchase any shares in this offering.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>TERMS OF THE OFFERING</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Registrant intends to register 50,000,000
common shares at the fixed price of $.25 per share for sale to the public<FONT STYLE="background-color: yellow"> </FONT>and if
all 50,000,000 common shares are sold then the Registrant shall receive $12,500,000.00 from the offering.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>DEPOSIT OF OFFERING PROCEEDS</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">This is a &ldquo;best effort&rdquo; offering and, as such, we
will not be able to spend any of the proceeds unless and until the minimum total of 25,000,000 common shares are sold and all proceeds
from such sale are received. We intend to hold all monies collected for subscriptions in a separate escrowed bank account with
JPMorgan Chase Bank, NA located at 10706 Biscayne Blvd., Miami, FL 3316, until the total amount of $6,250,000.00, which is the
minimum, has been received. At that time, the funds will be transferred to our business account for use in the implementation of
our business plans. In the event the offering is not sold out prior to the Expiration Date, all monies will be returned to investors,
without interest or deduction.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>PROCEDURES FOR AND REQUIREMENTS FOR
SUBSCRIBING</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If you decide to subscribe for any shares
in this offering, you will be required to execute a Subscription Agreement and tender it, together with a check or certified funds
to us. Subscriptions, once received by the Company, are irrevocable unless the total minimum offering of 25,000,000 common shares
are not sold. All checks for subscriptions should be made payable to &ldquo;Zyrox Mining International, Inc.&rdquo;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>DESCRIPTION OF SECURITIES</B></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our authorized capital stock consists <FONT STYLE="color: windowtext">of
3,000,000,000 shares</FONT> of common stock, par value $.001 per share of which there are currently 102,238,200 issued and outstanding.
The holders of our common stock (i) have equal ratable rights to dividends from funds legally available therefore, when, as and
if declared by our Board of Directors; (ii) are entitled to share in all of our assets available for distribution to holders of
common stock upon liquidation, dissolution or winding up of our affairs; (iii) do not have preemptive, subscription or conversion
rights and there are no redemption or sinking fund provisions or rights; and (iv) are entitled to one non-cumulative vote per share
on all matters on which stockholders may vote.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">There are currently no outstanding option
or warrant awards, and the Company has not implemented any equity compensation plan.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>NON-CUMULATIVE VOTING</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Holders of shares of our common stock do
not have cumulative voting rights, which means that the holders of more than 50% of the outstanding shares, voting for the election
of directors, can elect all of the directors to be elected, if they so choose, and, in such event, the holders of the remaining
shares will not be able to elect any of our directors.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of the date of this prospectus, we have
not paid any cash dividends to stockholders. The declaration of any future cash dividend will be at the discretion of our Board
of Directors and will depend on our earnings, if any, our capital requirements and financial position, our general economic conditions,
and other pertinent conditions. It is our present intention not to pay any cash dividends in the foreseeable future, but rather
to reinvest earnings, if any, in our business operations.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company&rsquo;s authorized capital
stock of Preferred Shares consists of 300,000,000 shares divided into three classes of 100,000,000 Preferred Shares each, designated
as Class &ldquo;A&rdquo;, Class &ldquo;B&rdquo; and Class &ldquo;C.&rdquo; All shares of Preferred Stock are at par value of $.001
per share.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">There are currently 855,000 Preferred &ldquo;A&rdquo;
shares outstanding. Preferred &ldquo;A&rdquo; shares are super-voting shares, are non-dilutive and they convert only in exchange
for the partial or full retirement of debt held by Management, employees or consultants, or as directed by a majority vote of the
Board of Directors. The number of Shares of Preferred Stock to be issued to each qualified person (member of Management, employee
or consultant) holding a Note shall be determined by the following formula:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0.5in">Each dollar
of debt represents one preferred share.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If at least one share of Series A Preferred
Stock is issued and outstanding, then the total aggregate issued shares of Series A Preferred Stock at any given time, regardless
of their number, shall have voting rights equal to four times the sum of the total number of shares of Common Stock which are issued
and outstanding at the time of voting.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>INTEREST OF NAMED EXPERTS AND COUNSEL</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">None of the below described experts or
counsel have been hired on a contingent basis and none of them will receive a direct or indirect interest in the Company.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our audited financial statements for the
period from inception to May 31, 2012 included in this prospectus have been audited by CPA Services Corp.com, <FONT STYLE="color: windowtext">8501
Pines Blvd - #207, Pembroke Pines, FL 33029</FONT> and signed by Enrique Nowogrodzki, a Certified Public Accountant admitted to
the PCAOB<FONT STYLE="color: windowtext">. We include the financial statemen</FONT>ts in reliance on their report, given upon their
authority as experts in accounting and auditing.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Law Offices of Joseph L. Pittera, 2214
Torrance Boulevard, Suite 101, Torrance, California 90501, has passed upon the validity of the shares being offered and certain
other legal matters and is representing us in connection with this offering.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>DESCRIPTION OF OUR BUSINESS</B></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We were incorporated on June 3, 2009, under
the laws of the State of Nevada.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of the date hereof, we have had only
limited start-up operations and have not generated any significant revenues.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our executive offices are located at 1800
NE 114<SUP>th</SUP> Street, Suite 609, Miami, Florida 33181 &ndash; 3414 with telephone number of (855) 229-9979.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our fiscal year-end is May 31.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: windowtext">Zyrox Mining International,
Inc. (formerly Diversified Energy &amp; Fuel, Inc. until August 15, 2012)</FONT> was incorporated in the State of Nevada on June
3, 2009. Zyrox Mining International, Inc. began formal operations on June 3, 2009, with the principle purpose of developing, marketing
and selling software products through the Internet, and to provide web based services for individuals and small business. During
2010, this business was discontinued and management focused on developing a biodegradable plastic opportunity.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On November 8, 2010, the Company entered into an agreement to
acquire 100% of the Membership Interests of WSVPA Bio Products Incorporated, a Nevada LLC in consideration for 102,238,200 shares
of common stock. After completion of their due diligence, WSPVA formally closed on the transaction on May 12, 2012. The Company
subsequently received 500,000,000 Class &quot;A&quot; membership units and 1,000,000 Class &ldquo;B&rdquo; membership units representing
100% of the membership interest of WSPVA (dissolvingplastic.com) in return for 102,238,200 common shares of the Company and WSPVA
is now a wholly owned subsidiary of the Company.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>PRINCIPAL PRODUCTS AND SERVICES AND THEIR MARKETS</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Global plastics consumption will be over
500 billion pounds this year, and is growing by over 15 billion pounds per year.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: -9pt">The USA alone
uses 380 billion plastic bags per year, over 1 billion per day, using the equivalent of 1.3 billion gallons of oil annually to
produce.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: -9pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 9.35pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">An estimated 500 billion to 1 trillion plastic bags will be consumed worldwide this year. That
comes out to over one million bags per minute.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9.35pt; text-align: justify; text-indent: -9.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 9pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">Americans will use 125 billion plastic (water &amp; soda) bottles this year, using 12.5 billion
pounds of plastic.</TD></TR></TABLE>

<P STYLE="font: 10pt Symbol; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: -9pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 9pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">3 billion pounds of stretch wrap gets used in the US per year, using the equivalent of over 240
million gallons of oil annually to produce.</TD></TR></TABLE>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>The combined value of the European and
US plastic packaging market is $1.04 trillion. One pound of plastic is being sold for an average of US$2 to the end user.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">You get the picture. Our consumption of
plastic products is growing and growing&mdash;and the market is strong.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">BUT &hellip; Plastic has a dark side.</P>

<P STYLE="font: 10pt Symbol; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: -9pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 9pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">Plastic can take up to 1,000 years to biodegrade. It furthermore can leak or break down into harmful
chemicals when reused or recycled, and produces large amounts of greenhouse and other gases upon disposal.<B> It is not a friend
to the environment.</B></TD></TR></TABLE>

<P STYLE="font: 10pt Symbol; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: -9pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 9pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">86% of plastic water bottles used in the U.S. (100 billion) end up in landfills.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: -9pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 9pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">The
                                                                                                       bottled water we purchase
                                                                                                       is often in #1 PET or PET
                                                                                                       bottles (polyethylene terephthalate),
                                                                                                       which may leach DEHA, a
                                                                                                       known carcinogen, if used
                                                                                                       more than once.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: -9pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 9pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">Californians
                                                                                                       alone throw away 294 million
                                                                                                       pounds of plastic bags
                                                                                                       every year, enough waste
                                                                                                       to circle the planet over
                                                                                                       250 times.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: -9pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 9pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">Over
                                                                                                       246 million lbs. of debris
                                                                                                       enter our oceans per day,
                                                                                                       making over 90 billion
                                                                                                       pounds per year. Globally,
                                                                                                       the proportion of plastic
                                                                                                       among marine debris worldwide
                                                                                                       ranges from 60 to 80%,
                                                                                                       although it has reached
                                                                                                       over 90&ndash;95% in some
                                                                                                       areas. Around 60% of this
                                                                                                       debris is plastic, making
                                                                                                       a full 8% of the world&rsquo;s
                                                                                                       plastics end up in the
                                                                                                       oceans!</TD></TR></TABLE>

<P STYLE="color: #4F81BD; font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="font: 10pt Times New Roman, Times, Serif; width: 85%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 100%; border-bottom: windowtext 1pt solid; font-size: 10pt; font-style: italic; font-weight: bold">Bio-Plastics are already on the Increase</TD></TR>
</TABLE>


<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.65in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Many bio-plastics are available on the
market today. Bio-based and biodegradable plastics are a very promising innovation for both industry and the economy. Compost-ability
is the main material property, which differentiates bio-plastics products from conventional plastic material. This enables the
organic recycling of bio-plastics products. The other differentiating feature is that the components are derived entirely from
renewable raw materials.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&ldquo;Bio-plastics are biodegradable
and can be made from the triglycerides found in oilseeds such as canola, starches, such as those found in corn, sugar beets and
potatoes, or on using proteins from soybeans. Companies like Telles are using corn instead of petroleum to engineer the polymers
necessary to make plastic. The corn is introduced to microorganisms in a fermentation process that yields a polymer. The polymer
is then made into pellets that are used to make different grades of paper coatings and thermoformed products.&rdquo;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">These alternatives are advantageous to
our environment, because they require less energy to process than conventional plastics; they release <I>CO<SUB>2</SUB></I> and
water after degradation, recycle carbon in our environment thereby reducing <I>CO<SUB>2</SUB></I> production and stabilizing the
environment and produce more fertile soil after degradation rich in nutrients and good for further farming.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company&rsquo;s Unique Niche:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company&rsquo;s Bio-Plastic is Unique both
in Composition and Process.</P>

<P STYLE="color: #4F81BD; font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="font: 10pt Times New Roman, Times, Serif; width: 85%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 100%; border-bottom: windowtext 1pt solid; font-size: 10pt; font-style: italic; font-weight: bold">The Solution is in the Patented Technology, not just the PVA Film</TD></TR>
</TABLE>


<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.65in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>The process,
technique, and equipment developed around the rotary-drum, forming dual-directional stretching water-soluble PVA Film, has successfully
solved many technical puzzles arising out of the wet-producing process of fast film-forming, film-peeling, and continuous high
efficient production.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; border-top: white 1.5pt solid">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; border-top: white 1.5pt solid"><I>This results
in a short process flow, relatively small equipment cost, small floor space, low energy consumption, little noise, and very-clean
production surroundings.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; border-top: white 1.5pt solid">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; border-top: white 1.5pt solid"><I>The rotary
drum surface involved in this invention is a special metal material. It requires the patented machine&rsquo;s feeding system to
uniformly spray the PVA solution onto the surface of the drum, which is continuously heated and which smoothly rotates to form
the PVA Film.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; border-top: white 1.5pt solid"><I>&nbsp;</I></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; border-top: white 1.5pt solid"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; border-top: white 1.5pt solid"><I>The water-soluble
PVA Film produced by the process is characterized by sound performance, high strength and good transparency.</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The pursuit of innovation demands that
the Company continually expand its understanding of the chemistry and physics of film, extrusion and clean room techniques, and
work closely with the Company&rsquo;s suppliers and customers.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">What&rsquo;s unique about the Company&rsquo;s
PVA Film is:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">its price point is competitive with plastics currently on the market (depending upon the price
of oil or corn);</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">it biodegrades quickly in both compost and landfills without needing any industrial additives (a
large variety of naturally occurring microorganisms have been proven to degrade PVA);</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">it is an excellent barrier to odors, bacteria, carbon dioxide, hydrogen and oxygen, and is solvent
resistant;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">it is non-toxic. While the film is not approved for food contact applications yet, independent
studies have shown it to be non-toxic;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">it is stable even under extreme heat and other conditions; and</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">it is water-soluble and will dissolve in certain pre-configured temperatures of water (cold, warm
and hot water soluble grades are available).</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; border-top: white 1.5pt solid"><I>Consumers
will enjoy having the option of either disposing of our plastic with their trash, knowing it will quickly biodegrade in a landfill,
or simply dissolve our plastic down their kitchen sinks.</I></P>

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

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal">The
Company has few PVA Packaging Material direct competitors&mdash;even with so many biodegradable plastics available today.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.65in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="font: 10pt Times New Roman, Times, Serif; width: 85%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 100%; font-size: 10pt; font-style: italic; font-weight: bold; border-bottom: Black 1pt solid">The Company&rsquo;s Product (PVA) versus PET &amp; PLA</TD></TR>
</TABLE>


<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.65in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Company&rsquo;s plastic is a polyvinyl alcohol (&ldquo;PVA&rdquo;) based plastic, which is non-toxic, 100% biodegradable and water-soluble.
It doesn&rsquo;t discolor when exposed to sunlight, nor degrade with heat. PVA has been evaluated by the FDA and is &ldquo;Generally
Considered as Safe,&rdquo; even for human consumption (as it is often used as a coating for medication, fruit and vegetables).</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">PVA itself is not a new invention, but
until now, it could only be produced in a hand-made manual way; no machine could efficiently mass-produce it.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">What makes the Company&rsquo;s PVA Packaging
Material unique is that the Company&rsquo;s scientists have discovered a way to produce this plastic for a variety of applications
at relatively low costs by using the Company&rsquo;s proprietary methods and patented machine(s).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Here is how it matches up against the competition:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company&rsquo;s PVA film is superior and unique amongst
all biodegradable products on the market today. MonoSol in the U.S. (see: <U>http://www.monosol.com/</U>) is a competitor. The
main competitor in the field is Aicello of Japan (see: <U>http://www.solublon.com/</U>).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">PVA
water-soluble film is used in diverse applications such as packaging, mold release, transfer printing, embroidery, medical and
textiles.&nbsp; </FONT>The industry is primarily focused on film/wrap/bags applications. The fastest growing segment is household
laundry and dishwasher detergent packages, with the detergent being in a single serving plastic bag consisting of a PVA film that
dissolves during the cleansing process. Laundry bags (medical facilities) are also an established market. In addition, polarizing
PVA film for LCD (Liquid Crystal Displays) is a growing market (high-end, mostly out of Japan).</P>

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">1.</TD><TD STYLE="text-align: justify"><B>Price</B>. PET uses petroleum and its price fluctuates with world oil prices. PLA is more expensive
than PET, uses petroleum in its production process, and its price fluctuates depending upon the price of oil, and/or corn. Unlike
PET and PLA, the Company&rsquo;s product does not contain oil or corn, and it is able to offer stable, long-term and competitive
pricing to the customers we plan to divert from PET and PLA.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">2.</TD><TD STYLE="text-align: justify"><B>Biodegradability &amp; Convenience of Disposal</B>. Unlike PET and PLA, the Company&rsquo;s
product is 100% biodegradable in both a landfill and in compost. This means the consumer can dispose of the Company&rsquo;s product
directly in their trash. It is also water soluble, which allows consumers to simply dissolve the plastic under certain water temperatures
in their sink. Since the recycling process uses water to cleanse recycled plastic, the Company&rsquo;s plastic should simply dissolve
during the recycling process and will thus not &ldquo;contaminate&rdquo; the recycle stream like PLA is accused of doing. Taken
together, the consumer has the options of: (i) disposing the product in the trash; (ii) dissolving it in their sink; and/or (iii)
depositing it in the recycle bin.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">3.</TD><TD STYLE="text-align: justify"><B>Quality of Our Product</B>. PET is a very high quality, durable plastic. PLA can be susceptible
to instability in heat, sunlight and other factors, which might affect its marketability. The Company&rsquo;s product, by comparison,
is very stable under heat just like PET. In fact, it has been tested by a plastic bag producer at temperatures up to 380&deg;F,
and our product didn&rsquo;t change. By contrast, PET burnt to a crisp. Despite the product&rsquo;s strength and durability, it
will quickly dissolve in certain temperatures of water (we can design the temperature parameters depending upon the application)
and will degrade quickly when exposed to bacteria in a landfill or soil. In addition, uncertified tests have been made on &ldquo;freshness&rdquo;
using the Company&rsquo;s PVA Film and it was found that a ripe piece of fruit, when sealed in PVA Film, stays fresh for a full
30 days.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">4.</TD><TD STYLE="text-align: justify"><B>Accessibility and Production of the Raw Material for the Production of PVA Film. </B>Though
any bio-substance that can ferment into an alcohol can be used to make the PVA Film from the patented PVA Film Machine, after extensive
testing of the properties of various plants, vegetables and fruits, it has been concluded that (i) the biodegradable qualities
are not equal amongst all bio-substances; (ii) some bio-substances leave varying degrees of residue upon degradation; (iii) the
cost varies; and (iv) so does the time taken to ferment and get the raw material ready for the PVA Film making process.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Therefore, the scientists have
chosen the best possible raw materials that produce the greatest amount of benefits and cost savings.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Since 500 Billion pounds of plastic will
be produced and sold this year, the markets and applications are endless. Since the product is 100% &ldquo;Green&rdquo; it will
also be in immediate demand, especially since there are so few real competitors.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Preliminary market development work has
been done by WSPVA as follows:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">WSPVA believes it has three markets for
its PVA Film (stemming from formal and informal discussions with representatives of companies who are interested in our product(s)
once we are in full production, and based upon certain assumptions and conditions):</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Pharmaceutical Industry (gowns, gloves,
etc.):</B> A packaging factory with capacity to handle 30,000 metric tons per month, totaling 792,000,000 lbs. of plastics per
year. They are limited by their production capacity and not by what they can sell. They expressed interest in possibly paying $4.50
per lb. for enough PVA Film to replace their present plastics.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>The Fruit and Vegetable Packaging Industry
in North America, USA</B>: This industry has over 450 different commodities sold at the retail level. Much of this industry requires
plastic &ldquo;clam shells&rdquo; to package and market their products. Using just one of the 450 commodities as an example, the
State of California alone will require 1,440,000,000 clamshells for strawberries in 2010. In just the strawberry industry, this
represents approximately $175,000,000 annually worth of clamshell needs for strawberries alone.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A California Company has given us a conditional
order for over 500,000,000 clamshells. This alone represents a potential $60,000,000 in revenues.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Stephen Gould Corporation:</B> is the
largest privately owned packaging sales organization in the United States. It transacts over $500M in sales annually. Stephen Gould
services over 1,000 current customers like Disney, Verizon Wireless, RIM/Blackberry, and Golden State Foods (services fast-food
enterprises such as McDonalds). Stephen Gould has tested our PVA Film and believes that it is &ldquo;&hellip; game changing on
a global level.&rdquo; They are interested in exclusive rights to use our PVA Film for several of their customers, including possibly
Golden State Foods &ndash; servicing McDonalds and others in the fast food industry. We wish to establish a diverse portfolio of
customers, but the plastic bag industry has lower margins than the above two options. Nevertheless, when we have developed enough
PVA Film Machines, this is a very attractive contract to fulfill.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Nobility Fruit Co. has given us an initial
order for 1,000,000,000 clamshells, to be expanded as our production can handle the order. This totals $118,000,000 annually, with
a projected $95M in Net Profits, where only fixed annual expenses are computed. That&rsquo;s a projected $475M Net Profit for a
5-year contract. It takes 63 PVA Film Machines to fill this order. If we expand in order to fill their entire 3 billion clamshell
needs, we would need 189 machines. This order represents a $2.56 per lbs and $6.24 per lbs. price for our plastic, as compared
to the $4.50 per lbs price for the pharmaceutical application.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Presently, the packaging and consumer products
plastic industry utilizes primarily two types of plastic: Polyethylene Terephthalate (&ldquo;PET&rdquo;) and Poly Lactic Acid (&ldquo;PLA&rdquo;).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>PET </B>(Polyethylene Terephthalate)</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">PET dominates the consumer plastic industry.
It is used in plastic bottles, bags, clamshells and most other packaging and consumer product applications. Because PET is petroleum
based, its price fluctuates with the price of oil. It is not biodegradable, but it is commonly recycled. It takes between 500-1,000
years to biodegrade.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Though a very stable product, it cannot
be produced from renewable energy sources and it is very destructive to the environment&mdash;both land and water.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>PLA</B> (Poly Lactic Acid)</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">PLA is a relatively new entry into the
plastic packaging and consumer goods market. PLA is typically a corn oil based plastic when produced in the U.S., and a sugar cane
based plastic outside of the U.S.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In the US, there is one primary producer
of PLA products, and that is NatureWorks LLC. PLA is generally more expensive than PET, but there is a demand for it nonetheless
because it is considered &ldquo;green&rdquo; compared to PET.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">However, by NatureWorks LLC&rsquo;s own
admission, their product is not biodegradable. It is &ldquo;compost-able,&rdquo; but only in an industrial compost facility. Moreover,
it cannot degrade in landfills, will not degrade in the ocean or soil, and may contaminate the recycling industry.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><img src="pg18.jpg"></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Despite the relatively high prices and
all the aforementioned problems with PLA, many major retailers (like Walmart and Trader Joes and others) are demanding PLA products
to promote a &ldquo;green&rdquo; ideology. We intend to quickly fill that demand with our product.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We include under the PLA category, other
plastics considered Biodegradable and which come from renewable vegetation-based resources because they all share common drawbacks.
PLA has other drawbacks.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">1.</TD><TD STYLE="text-align: justify">It is more expensive to produce.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">2.</TD><TD STYLE="text-align: justify">It is unstable in heat.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">3.</TD><TD STYLE="text-align: justify">It has a tendency to discolor under direct sunlight.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">4.</TD><TD STYLE="text-align: justify">Consumers don&rsquo;t know what to do with PLA products, as they require industrial composting,
and consumers often dispose of PLA products in either the trash or the recycle stream.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We include Cereplast, Inc. (Nasdaq:CERP)
as part of the PLA category and they are a serious competitor in some important ways. We include certain details here so one can
immediately see the complexity of production of usable resin&mdash;whereas the Company&rsquo;s PVA Film is simply made from alcohol,
converted to a liquid which is fed into a PVA Machine, making rolls and rolls of plastic which is easily distributed and used
by all conventional machines.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Cereplast designs and manufactures proprietary
starch-based, plastics created from their proprietary bio-plastics technology, which incorporate PLA as part of the resin. These
bio-resins replace a significant portion of petroleum-based additives with bio-based material such as starches from tapioca, corn,
wheat and potatoes, resulting in sustainable plastics.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Since Cereplast is starch-based, rather
than petroleum-based, the cost is not subject to fluctuation based on the price of fossil fuels. The manufacturing process for
Cereplast resins takes place at a lower heat than that required for manufacturing with traditional plastics, further bringing down
manufacturing costs.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Resin manufacturing requires the Cereplast
production team to select the right biopolymer matrix made from renewable, cost-stable resources. These biopolymers include polylactic
acid (PLA) from NatureWorks LLC, soy proteins, PHA, PHBs, or starch from corn, wheat or potatoes.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The selected biopolymer is blended with
other biodegradable components to reinforce its molecular structure through a proprietary process developed by Cereplast. The blend
is then polymerized and treated with nano-composites for surface optimization and further reinforcement. The entire green composite
process is high-speed and low-cost. The final product is then packaged and shipped to converters, which are able to process the
resin using traditional equipment.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Cereplast products are certified biodegradable
by a number of independent agencies. The products are fully compost-able in <U>commercial facilities</U> within 60-180 days, leaving
no chemical residue. Cereplast products can be discarded with food waste &ndash; no separation required.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Cereplast Hybrid Resins&reg; products are
bio-based, replacing 50% or more of the petroleum content in traditional plastic products with materials from renewable sources
such as starches from corn, tapioca, wheat and potatoes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We could include a long list of semi-biodegradable
products, but all share similar properties that differentiate them from our product:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">They remain unstable when produced by a machine or when they encounter heat or extreme conditions.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">Many of these products must be produced by hand and don&rsquo;t presently have a machine-based
application.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">Compost-ability is most often subject to some industrial process instead of being able to just
be placed in a hole in the ground and covered.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">Price of production is still higher than our PVA Film</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">According to Doug Woodring, founder of the Ocean Recovery Alliance,
&ldquo;Plastic and other waste in the ocean have caused a large impact on the environment and ecosystem, much of which is only
just becoming understood. It can kill marine life, may be entering our food chain, and can have a negative effect on people&rsquo;s
health and safety. Global consumption of plastic has outstripped our infrastructure in waste management. It is estimated that over
70% of the plastic and other waste in the ocean enters from land based sources, and this has spurred urgent attention on its environmental
impact.&rdquo;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">There are growing indications that the cumulative effect of
plastic use as a common business component is having increasingly harmful environmental impacts. Recent studies include the following
data:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>More than 7 million tons of garbage reaches the marine environment every year according to the UNEP.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Most plastic is not biodegradable, and the decomposition of many types of plastic can take hundreds of years.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>SOURCES AND AVAILABILITY OF PRODUCTS</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">WSPVA believes it has three markets for
its PVA Film (stemming from formal and informal discussions with representatives of companies who are interested in our product(s)
once we are in full production, and based upon certain assumptions and conditions):</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Pharmaceutical Industry (gowns, gloves,
etc.):</B> A packaging factory with capacity to handle 30,000 metric tons per month, totaling 792,000,000 lbs. of plastics per
year. They are limited by their production capacity and not by what they can sell. They expressed interest in possibly paying $4.50
per lb. for enough PVA Film to replace their present plastics.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>The Fruit and Vegetable Packaging Industry
in North America, USA</B>: This industry has over 450 different commodities sold at the retail level. Much of this industry requires
plastic &ldquo;clam shells&rdquo; to package and market their products. Using just one of the 450 commodities as an example, the
State of California alone will require 1,440,000,000 clamshells for strawberries in 2010. In just the strawberry industry, this
represents approximately $175,000,000 annually worth of clamshell needs for strawberries alone.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A California Company has given us a conditional
order for over 500,000,000 clamshells. This alone represents a potential $60,000,000 in revenues.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Stephen Gould Corporation:</B> is the
largest privately owned packaging sales organization in the United States. It transacts over $500M in sales annually. Stephen Gould
services over 1,000 current customers like Disney, Verizon Wireless, RIM/Blackberry, and Golden State Foods (services fast-food
enterprises such as McDonalds). Stephen Gould has tested our PVA Film and believes that it is &ldquo;&hellip; game changing on
a global level.&rdquo; They are interested in exclusive rights to use our PVA Film for several of their customers, including possibly
Golden State Foods &ndash; servicing McDonalds and others in the fast food industry. We wish to establish a diverse portfolio of
customers, but the plastic bag industry has lower margins than the above two options. Nevertheless, when we have developed enough
PVA Film Machines, this is a very attractive contract to fulfill.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Nobility Fruit Co. has given us an initial
order for 1,000,000,000 clamshells, to be expanded as our production can handle the order. This totals $118,000,000 annually, with
a projected $95M in Net Profits, where only fixed annual expenses are computed. That&rsquo;s a projected $475M Net Profit for a
5-year contract. It takes 63 PVA Film Machines to fill this order. If we expand in order to fill their entire 3 billion clamshell
needs, we would need 189 machines. This order represents a $2.56 per lbs and $6.24 per lbs. price for our plastic, as compared
to the $4.50 per lbs price for the pharmaceutical application.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>DEPENDENCE ON ONE OR A FEW MAJOR CUSTOMERS</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Zyrox Mining International, Inc. is not dependent on one or
a few major customers.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>PATENTS, TRADEMARKS and LICENSES</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Exclusive Technology License - Licensors have irrevocably
granted to the Company, to the exclusion of Licensors, their Affiliates, Related Entities, Assigns or any person or entity
anywhere in the world, an exclusive, non-cancelable license for the United States and Canada to import, purchase, promote,
market, distribute, sell, transfer, utilize and/or use, in any way the Company desires and at the Company's absolute and
exclusive discretion, the Products, End Products, Patent, PCX Patent, Invention Patent, Patent Rights and/or Intellectual
Property, along with any products, services, processes, designs, methods, materials, ingredients, improvements or inventions
utilized thereby or derived there from, in any way the Company likes; which license shall be irrevocable, non-cancelable,
exclusive, without restriction, and without royalty, and which also includes the right of the Company to sublicense however
and to whomever the Company wants (&quot;Exclusive License&quot;). The term of this Exclusive License and all rights related
thereto shall be: (i) the maximum term allowable in the P.R.C. and/or other applicable jurisdictions for a license against
the Patent and/or PCT Patent, including any extensions thereof; and (ii) in perpetuity with respect to all other aspects of
the Company's Exclusive License and exclusive rights granted in this Agreement (or some other shorter period if such shorter
period is required by law in a certain applicable jurisdiction, in which case the shorter period shall only apply in that
jurisdiction). Licensors (and/or their successors or assigns) shall file patent extensions related to the Patent, PCT Patent,
Invention Patent and/or any other patents related to the Patent Rights or Intellectual Property no later than 180 days before
expiration thereof. Licensors shall initiate, maintain and defend such patent extension application(s). Upon expiration of
any of the Patent, PCT Patent, Invention Patent, and/or any other additional patents related to the Patent Rights or
Intellectual Property, Licensors (or, if applicable, their successors) or Assign(s)) shall issue to the Company (or, if
applicable, its successor or assign) a new Technology License and Transfer Agreement in form and substance, which is
substantially similar to this Agreement and which shall extend and expand the Company's rights hereunder as they relate to
the Patent, PCT Patent, Invention Patent, Patent Rights, Product, End Products and Intellectual Property along with any
products, services, processes, designs, methods, materials, ingredients, improvements or inventions utilized thereby or
derived there from, for a new extended term, which is in perpetuity (or some other shorter period if law requires such
shorter period in a certain applicable jurisdiction, in which case the shorter period shall only apply in that
Jurisdiction).</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>NEED FOR ANY GOVERNMENT APPROVAL OR PRINCIPAL PRODUCTS</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We may face regulatory actions or other
sanctions from regulatory agencies. These regulatory agencies may impose fines and penalties on our operations, limit our operating
privileges, delay or restrict the repatriation of the proceeds from this offering, or take other actions that could have a material
adverse effect on our business, financial condition, results of operations, reputation and prospects, as well as the trading price
of our common stock. The regulatory agencies also may take actions requiring us, or making it advisable for us, to halt this offering
before settlement and delivery of the common stock offered hereby. Consequently, if you engage in market trading or other activities
in anticipation of and prior to settlement and delivery, you do so at the risk that settlement and delivery may not occur.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Any uncertainties and/or negative publicity
regarding this approval requirement could have a material adverse effect on the trading price of our common stock.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>GOVERNMENT AND INDUSTRY REGULATION</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We will be subject to federal laws and
regulations that relate directly or indirectly to our operations including securities laws. We will also be subject to common business
and tax rules and regulations pertaining to the operation of our business.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company&rsquo;s product is bio degradable
and non-toxic. We do not anticipate any problems with environmental laws. <FONT STYLE="font-family: Times New Roman, Times, Serif">However,
as a manufacturer, we are subject to various environmental laws and regulations on air emission, wastewater discharge, solid wastes
and noise. Although we believe that our operations are in substantial compliance with current environmental laws and regulations,
we may not be able to comply with these regulations at all times as the environmental legal regime is evolving and becoming more
stringent. Therefore, if the government imposes more stringent regulations in the future, we may have to incur additional and potentially
substantial costs and expenses in order to comply with new regulations, which may negatively affect our results of operations.&nbsp;&nbsp;Further,
no assurance can be given that all potential environmental liabilities have been identified or properly quantified or that any
prior owner, operator, or tenant has not created an environmental condition unknown to us.&nbsp;&nbsp;If we fail to comply with
any of the present or future environmental regulations in any material aspects, we may suffer from negative publicity and&nbsp;be
subject to claims for damages that may require us to pay substantial fines or have our operations suspended or even be forced to
cease operations.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>EMPLOYEES AND EMPLOYMENT AGREEMENTS</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company currently has one full time
and two part time employees pending funding. <FONT STYLE="font-family: Times New Roman, Times, Serif">Messrs. Halim, Kruse Cruz
and Kruse Velazquez are essential to our ability to continue to grow our business.&nbsp;&nbsp;Each of these key employees has established
relationships within the industries in which we operate. Each of these employees have agreed to non-solicitation and non-compete
restrictions during the course of their employment with us, however, these restrictions only extend for a one year period from
termination.&nbsp;&nbsp;Further, we do not maintain, or intend to maintain, key person life insurance for any of our officers or
key employees.&nbsp;&nbsp;If any of them were to leave us, our growth strategy might be hindered, which could limit our ability
to increase revenue. In addition, we face competition for attracting skilled personnel. If we fail to attract and retain qualified
personnel to meet current and future needs, this could slow our ability to grow our business, which could result in a decrease
in market share.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are not involved in any pending legal
proceeding nor are we aware of any pending or threatened litigation against us.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>MARKET FOR COMMON EQUITY AND RELATED
STOCKHOLDER MATTERS</B></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company&rsquo;s Common Stock is currently quoted on the
OTC:PK Board.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>PENNY STOCK RULES</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Securities and Exchange Commission
has adopted rules that regulate broker-dealer practices in connection with transactions in penny stocks. Penny stocks are generally
equity securities with a price of less than $5.00 (other than securities registered on certain national securities exchanges or
quoted on the Nasdaq system, provided that current price and volume information with respect to transactions in such securities
is provided by the exchange or system).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A purchaser is purchasing penny stock that
limits the ability to sell the stock. The shares offered by this prospectus constitute penny stock under the Securities and Exchange
Act. The shares will remain penny stocks for the foreseeable future. The classification of penny stock makes it more difficult
for a broker-dealer to sell the stock into a secondary market, which makes it more difficult for a purchaser to liquidate his/her
investment. Any broker-dealer engaged by the purchaser for the purpose of selling his or her shares in us will be subject to Rules
15g-1 through 15g-10 of the Securities and Exchange Act. Rather than creating a need to comply with those rules, some broker-dealers
will refuse to attempt to sell penny stock.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The penny stock rules require a broker-dealer,
prior to a transaction in a penny stock not otherwise exempt from those rules, to deliver a standardized risk disclosure document,
which:</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 0.5in; text-align: justify">-</TD>
    <TD STYLE="text-align: justify">Contains a description of the nature and level of risk in the market for penny stock in both Public offerings and secondary trading;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">-</TD>
    <TD STYLE="text-align: justify">Contains a description of the broker&rsquo;s or dealer&rsquo;s duties to the customer and of the rights and remedies available to the customer with respect to a violation of such duties or other requirements of the Securities Act of 1934, as amended;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">-</TD>
    <TD STYLE="text-align: justify">Contains a brief, clear, narrative description of a dealer market, including &ldquo;bid&rdquo; and &ldquo;ask&rdquo; price for the penny stock and the significance of the spread between the bid and ask price;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">-</TD>
    <TD STYLE="text-align: justify">Contains a toll-free number for inquiries on disciplinary actions;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">-</TD>
    <TD STYLE="text-align: justify">Defines significant terms in the disclosure document or in the conduct of trading penny stocks; and</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">-</TD>
    <TD STYLE="text-align: justify">Contains such other information and is in such form (including language, type, size and format) as the Securities and Exchange Commission shall require by rule or regulation.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">-</TD>
    <TD STYLE="text-align: justify">The broker-dealer also must provide, prior to effecting any transaction in a penny stock, to the customer:</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">-</TD>
    <TD STYLE="text-align: justify">The bid and offer quotations for the penny stock;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">-</TD>
    <TD STYLE="text-align: justify">The compensation of the broker-dealer and its salesperson in the transaction;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">-</TD>
    <TD STYLE="text-align: justify">The number of shares to which such bid and ask prices apply, or other comparable information relating to the depth and liquidity of the market for such stock; and</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">-</TD>
    <TD STYLE="text-align: justify">Monthly account statements showing the market value of each penny stock held in the customer&rsquo;s account.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition, the penny stock rules require
that prior to a transaction in a penny stock not otherwise exempt from those 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&rsquo;s written acknowledgement
of the receipt of a risk disclosure statement, a written agreement to transactions involving penny stocks, and a signed and dated
copy of a written suitability statement. These disclosure requirements will have the effect of reducing the trading activity in
the secondary market for our stock because it will be subject to these penny stock rules. Therefore, stockholders may have difficulty
selling their securities.</P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are subject to certain reporting requirements
and will furnish annual financial reports to our stockholders, certified by our independent accountants, and will furnish un-audited
quarterly financial reports in our quarterly reports filed electronically with the SEC. All reports and information filed by us
can be found at the SEC website, <FONT STYLE="color: black"><U>www.sec.gov</U></FONT>.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>STOCK TRANSFER AGENT</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company&rsquo;s transfer agent is OTR,
Inc., located at 1001 SW 5<SUP>th</SUP> Avenue, Suite 1550, Portland, OR 97205, telephone: (503) 225-0375, fax: 503-273-9168 The
Transfer Agent is registered under the Exchange Act of 1934, as amended, and the appropriate regulatory authority is the U.S. Securities
Exchange Commission.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our fiscal year-end is May 31. We intend
to provide financial statements audited by an Independent Registered Accounting Firm to our shareholders in our annual reports.
The audited financial statements for the period ended May 31, 2011 and May 31, 2012 and the Quarterly period ended August 31, 2012
immediately follow.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>MANAGEMENT&rsquo;S DISCUSSION AND ANALYSIS
OR PLAN OF OPERATION</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>The following discussion and analysis
is intended as a review of significant factors affecting our financial condition and results of operations for the periods indicated.
&nbsp;The discussion should be read in conjunction with our consolidated financial statements and the notes presented herein. &nbsp;In
addition to historical information, the following Management's Discussion and Analysis of Financial Condition and Results of Operations
contains forward-looking statements that involve risks and uncertainties. Our actual results could differ significantly from those
anticipated in these forward-looking statements as a result of certain factors discussed in this annual report.</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>MANAGEMENT&rsquo;S PLAN OF OPERATION</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following discussion of our financial
condition, changes in financial condition and results of operations for the period ended May 31, 2012.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="color: windowtext">The analysis
of new business opportunities will be undertaken by or under the supervision of the officers and directors of the Company. The
Company has unrestricted flexibility in seeking, analyzing and participating in potential business opportunities.</FONT><FONT STYLE="color: red">
</FONT>The Company aspires to be a fully reporting company by the end of the 4<SUP>th</SUP> quarter 2012.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The accompanying financial statements have
been prepared assuming the Company will continue as a going concern.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The future of the Company is dependent
upon its ability to obtain financing and upon future profitable operations from the development of its new business opportunities.
Management has plans to seek additional capital through a private placement and this public offering of its common stock. These
conditions raise substantial doubt about the Company's ability to continue as a going concern. These financial statements do not
include any adjustments that might arise from this uncertainty.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The financial statements do not include
any adjustments relating to the recoverability and classification of recorded assets, or the amounts of and classification of liabilities
that might be necessary in the event the Company cannot continue in existence.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>RESULTS OF OPERATIONS</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>For the year-ended May 31, 2012 compared
to the period ended May 31, 2011.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">At May 31, 2012, we have generated no operating
revenue. We earned $103,770.00 in revenues during the twelve-month period ended May 31, 2011. No revenues were earned during the
three months ended August 31, 2012.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Operating expenses for the twelve months
ended May 31, 2012 totaled $2,340.00. For the three months ended August 31, 2012, operating expenses totaled $79,156. The increase
was primarily due to increased professional fees for filing and other professional expenses associated with the merger with WSVPA.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We incurred a net loss of $6,270.00 during the twelve month
period ended May 31, 2012, as compared to a gain of $103,770.00 for the same period ended May 31, 2011. During the three month
period ended August 31, 2012, the Company incurred a net loss of $79,156.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Liquidity and Capital Resources</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the twelve months ended May 31,
2012 we experienced negative cash flow of $2,340.00 from operating activities. We recognized positive cash flow from financing
activities, relating to contributions to capital, proceeds from share issuance, repayments to and conversion from related party
loans, in the amount of $103,770.00 during the same period ended May 31, 2011. We experienced negative cash flow of $7,250 for
the three months ended August 31, 2012.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The accompanying financial statements have
been prepared assuming the Company will continue as a going concern.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>PROPOSED MILESTONES TO IMPLEMENT BUSINESS
OPERATIONS</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">(Phase 1) We intend to seek investment
equity and financing to construct one Production Plant by the end of the first year. We have built the financial proformas around
this scenario, which will be available after appropriate NDAs and Letters of Intent are signed.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">(Phase 2) Starting with Year 2, the Company
then has the option to 1) construct a second Production Plant and have it in full production by the end of the 2<SUP>nd</SUP> year;
2) focus on setting up license agreements for building PVA Machines to be shipped to other countries, such as Thailand (where much
of Asia&rsquo;s and US plastics are produced and for which we have direct access to the main companies involved); or 3) a combination
of the two.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Company Structure: The Founders have set
up a Hong Kong based Holding Company, along with a Marketing Company (Hong Kong) and Production Company (China.) utilizing their
own funds. Approximately $400,000 was expended on this effort during 2011 and $156,000 during the current year. This structure
is designed to maximize the return of investment and flexibility of the Company&rsquo;s operation, while minimizing taxes and creating
zero risk to the holding company when the subsidiaries are merged in. The Marketing Company will be responsible to build the brand,
secure global contracts for the sale of the PVA Film and products. The Production Company in China, will be responsible for the
manufacturing of the PVA Film machines and production of the PVA Film. In future phases, this Company will produce PVA Film Machines
to be licensed outside of China, beginning with North America.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>CRITICAL ACCOUNTING POLICIES</B></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">A.</TD><TD STYLE="text-align: justify">BASIS OF ACCOUNTING</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><U>Nature of Business</U></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: windowtext">Zyrox Mining International,
Inc. (formerly Diversified Energy &amp; Fuel, Inc. until August 15, 2012)</FONT> was incorporated in the State of Nevada on June
3, 2009. Zyrox Mining International, Inc. began formal operations on June 3, 2009, with the principle purpose of developing, marketing
and selling software products through the Internet, and to provide web based services for individuals and small business. During
2010, this business was discontinued and management focused on developing a biodegradable plastic opportunity.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On November 8, 2010, the Company entered into an agreement to
acquire 100% of the Membership Interests of WSVPA Bio Products Incorporated, a Nevada LLC in consideration for 102,238,200 shares
of common stock. After completion of their due diligence, WSPVA formally closed on the transaction on May 12, 2012. The Company
subsequently received 500,000,000 Class &quot;A&quot; membership units and 1,000,000 Class &ldquo;B&rdquo; membership units representing
100% of the membership interest of WSPVA (dissolvingplastic.com) in return for 102,238,200 common shares of the Company and WSPVA
is now a wholly owned subsidiary of the Company.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The preparation of financial statements in conformity with accounting
principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and
the reported amounts of revenues and expenses during the reporting period. The financial statements include estimates based on
currently available information and management&rsquo;s judgment as to the outcome of future conditions and circumstances.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Changes in the status of certain facts or circumstances could
result in material changes to the estimates used in the preparation of financial statements and actual results could differ from
the estimates and assumptions.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><U>Basic (Loss) Per Share</U></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Basic (loss) per share is calculated by
dividing the Company&rsquo;s net loss applicable to the weighted average number of shares outstanding during the period. Diluted
earnings per share are calculated by dividing the Company&rsquo;s net income available to shareholders by the diluted weighted
average number of shares outstanding during the period. The diluted weighted average number of shares outstanding is the basic
weighted average number of shares outstanding adjusted for any potentially dilutive debt or equity.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have never declared or paid any dividends
on our common stock. We currently intend to retain any future earnings for use in the operation and expansion of our business.
We do not expect to pay any cash dividends in the foreseeable future but will review this policy as circumstances dictate.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company has no component of other
comprehensive income. Accordingly, net income equals comprehensive income for the periods ended <FONT STYLE="font-size: 10pt">May
</FONT><FONT STYLE="color: windowtext">31, 2012 and May 31, 2011.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><U>Cash and Cash Equivalents</U></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company considers all highly liquid
instruments purchased with an original maturity of three months or less to be cash equivalents to the extent the funds are not
being held for investment purposes.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Certain amounts relating to the prior year&rsquo;s
financial statements have been reclassified to conform to the results of the current year presentation. These reclassifications
had no effect on the previously reported results of operations or accumulated deficit.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company provides for income taxes under
ASC Topic 740, Accounting for Income Taxes. ASC Topic 740 requires the use of an asset and liability approach in accounting for
income taxes. Deferred tax assets and liabilities are recorded based on the differences between the financial statement and tax
bases of assets and liabilities and the tax rates in effect when these differences are expected to reverse. The Company has elected
to be taxed as a corporation for Federal and State income taxes.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">ASC Topic 740 requires the reduction of
deferred tax assets by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some
or all of the deferred tax assets will not be realized.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The basis is accounting principles generally
accepted in the United States of America. The Company has adopted a May 31 fiscal year-end.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><U>Stock-Based Compensation</U></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company accounts for share based payments
in accordance with ASC 718, Compensation - Stock Compensation, which requires all share-based payments to employees, including
grants of employee stock options, to be recognized in the financial statements based on the grant date fair value of the award.
In accordance with ASC 718-10-30-9, Measurement Objective &ndash; Fair Value at Grant Date, the Company estimates the fair value
of the award using a valuation technique. For this purpose, the Company uses the Black-Scholes option-pricing model. The Company
believes this model provides the best estimate of fair value due to its ability to incorporate inputs that change over time, such
as volatility and interest rates, and to allow for actual exercise behavior of option holders. Compensation cost is recognized
over the requisite service period, which is generally equal to the vesting period. Upon exercise, shares issued will be newly issued
shares from authorized common stock.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">ASC 505, &quot;Compensation-Stock Compensation&quot;,
establishes standards for the accounting for transactions in which an entity exchanges its equity instruments to non-employees
for goods or services. Under this transition method, stock compensation expense includes compensation expense for all stock-based
compensation awards granted on or after January 1, 2006, based on the grant-date fair value estimated in accordance with the provisions
of ASC 505.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company has evaluated the recent accounting
pronouncements through ASU 2012-02 and believes that none of them will<FONT STYLE="color: red"> </FONT>have a material effect on
the Company&rsquo;s financial statements.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The financial statements are prepared using
the accrual method of accounting. The statements were prepared following generally accepted accounting principles of the United
States of America consistently applied. The Company has elected a May 31, year-end.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Directors of the corporation are elected by the stockholders
to a term of one year and serve until a successor is elected and qualified. Officers of the corporation are appointed by the Board
of Directors to a term of one year and serves until a successor is duly appointed and qualified, or until he or she is removed
from office. The Board of Directors has no nominating, auditing or compensation committees.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The name, age and position of our officer and director is set
forth below:</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25%; border-bottom: windowtext 1pt solid; text-align: center">Name</TD>
    <TD STYLE="width: 1%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 12%; border-bottom: windowtext 1pt solid; text-align: center">Age</TD>
    <TD STYLE="width: 1%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 20%; border-bottom: windowtext 1pt solid; text-align: center">First Year as Director</TD>
    <TD STYLE="width: 1%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 40%; border-bottom: windowtext 1pt solid; text-align: center">Position</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>Carl Kruse</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">72</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">2009</TD>
    <TD>&nbsp;</TD>
    <TD>President, Secretary, Director</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>Aslam Halim</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">55</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">2009</TD>
    <TD>&nbsp;</TD>
    <TD>Executive Vice President, Director</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>Carl Kruse Velazquez</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">47</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">2009</TD>
    <TD>&nbsp;</TD>
    <TD>Treasurer, Director</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The term of office of each director of
the Company ends at the next annual meeting of the Company's stockholders or when such director's successor is elected and qualifies.
No date for the next annual meeting of stockholders is specified in the Company's bylaws or has been fixed by the Board of Directors.
The term of office of each officer of the Company ends at the next annual meeting of the Company's Board of Directors, expected
to take place immediately after the next annual meeting of stockholders, or when such officer's successor is elected and qualifies.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Directors are entitled to reimbursement
for expenses in attending meetings but receive no other compensation for services as directors. Directors who are employees may
receive compensation for services other than as director. No compensation has been paid to directors for services.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>BACKGROUND INFORMATION ABOUT OUR OFFICERS
AND DIRECTORS</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following information sets forth the
backgrounds and business experience of the executive officers and directors:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Carl Kruse Cruz&ndash; President, Secretary, Director. </B>Mr.
Kruse has been self-employed as an auditor and management consultant for the past 30 years. As an owner/operations/administrative
executive, he brings a wealth of experience in project planning, management and execution. He was an executive with PepsiCo and
Pfizer, served as CFO for SkyPostal Networks, Inc. (OTCBB: SKPN) and was an audit manager for the firm currently known as Ernst
&amp; Young, CPA&rsquo;s. Mr. Kruse is a certified public account formerly licensed to practice in the states of Florida and New
York and in the Commonwealth of Puerto Rico. He has an MBA in Managerial Accounting from New York University and a BBA in Production
Management from the Baruch School of Business and Public Administration of the City University of New York. He has been associated
with the Company since 2009.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Aslam Halim &ndash; Executive Vice President, Director. </B>Mr.
Halim is <FONT STYLE="font-family: Times New Roman, Times, Serif">Graduate of the University of British Columbia. </FONT>He has
over 36 years of experience as a businessman. He successfully&nbsp;built numerous businesses from ground up and sold them at their
peak. He worked for New York Life Insurance Company in the finance department from 1986 to 1992 where he got his business training
in real estate development. For the past 12 years, Mr. Halim has lived in China and studied China&rsquo;s philosophy, understanding
the Chinese culture and developing good relationships with many of the State owned companies. He is currently working on numerous
international projects that involve China State owned and multinational corporations in the development of natural resources in
China and abroad. He serves as <FONT STYLE="font-family: Times New Roman, Times, Serif">President of Da Hai International Trading
Limited and Fushun Dahai Lichang Metal Products Co., Ltd. Mr. Halim has held this position since 2009.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Carl Kruse Velazquez &ndash; Treasurer and Director. </B><FONT STYLE="font-family: Times New Roman, Times, Serif">Carl
Kruse has more than 20 years experience as an entrepreneur and businessman. Mr. Kruse began his career with Deloitte and Touch
in New York and continued with that firm in London. </FONT>In his position at Deloitte, Mr. Kruse was involved in the preparation
of GAAP financial statements and evaluation, the effectiveness of internal controls over financial reporting and SEC reporting
and regulations compliance. He will be responsible for the daily record keeping and the preparation of financial statements in
accordance with U.S. GAAP. <FONT STYLE="font-family: Times New Roman, Times, Serif">He has founded and sold three separate businesses
and today specializes in raising capital for a wide range of enterprises and projects. Mr. Kruse has traveled extensively throughout
the Caribbean, Latin America, Europe, Africa and the Middle East and is fluent in English and Spanish and knowledgeable of French,
Portuguese and Finnish. He holds a BA, <I>Magna Cum Laude</I>, from Princeton University, an MBA from New York University and an
M.A. from Stanford University. Mr. Kruse has held this position since 2009.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Board believes that each of the Company&rsquo;s
directors is highly qualified to serve as a member of the Board. Each of the directors has contributed to the mix of skills, core
competencies and qualifications of the Board.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">None of our current directors hold or held
any directorships during the past five years in other reporting companies. Presently, none of our directors is an &ldquo;independent
director&rdquo; under&nbsp;the Corporate Governance Rules of the NASDAQ Stock Market, Inc., Rule&nbsp;5605(a)(2).&nbsp;There are
no family relationships among any of our directors or executive officers other than Carl Kruse Cruz being the father of Carl Kruse
Velazquez.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our Board has long believed that good corporate
governance is important to ensure that we are managed for the long-term benefit of our stockholders. Our common stock is not currently
quoted on any listed exchange. However, our Board believes that the corporate governance rules of NASDAQ and NYSE MKT LLC represent
good governance standards and, accordingly, during the past year, our Board has continued to review our governance practices in
light of the Sarbanes-Oxley Act of 2002, the new rules and regulations of the Securities and Exchange Commission and the new listing
standards of NASDAQ and NYSE MKT LLC, and it has implemented certain of the foregoing rules and listing standards during this past
fiscal year.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING
COMPLIANCE</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Section 16(a) of the Securities Exchange
Act of 1934 requires our directors and executive officers, and persons who own more than ten percent of our common stock, to file
with the Securities and Exchange Commission initial reports of ownership and reports of changes of ownership of our common stock.
Officers, directors and greater than ten percent stockholders are required by SEC regulation to furnish us with copies of all Section
16(a) forms they file.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We intend to ensure to the best of our
ability that all Section 16(a) filing requirements applicable to our officers, directors and greater than ten percent beneficial
owners are complied with in a timely fashion.</P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Currently, our officers and director receive
no compensation except for Carl Kruse, the Company&rsquo;s President, Secretary and Director who has an employment contract with
the Company for $250,000.00 per year beginning September 1, 2012. The other Officers and Directors have received shares of common
stock previously issued, for services during the development stage of the Company&rsquo;s business operations and/or for their
sale of their WSPVA shares. They are reimbursed for any out-of-pocket expenses that they incur on our behalf. In the future, we
may approve payment of salaries for officers and directors, but currently, no such plans have been approved. We also do not currently
have any benefits, such as health or life insurance, available to our employees.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Board of the Directors authorized the
issue of its common shares to the officers and directors that had been serving without compensation in the following amounts:</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 45%">&nbsp;Carl Kruse, President, Secretary and Director</TD>
    <TD STYLE="width: 50%; text-align: right">500,000 common shares and 855,000 Preferred A</TD>
    <TD STYLE="width: 5%; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>Aslam Halim, Executive Vice-President and Director</TD>
    <TD STYLE="text-align: right">25,935,650 common shares</TD>
    <TD STYLE="text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>Carl Kruse Velazquez, Treasurer and Director</TD>
    <TD STYLE="text-align: right">660,000 common shares</TD>
    <TD STYLE="text-align: right">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="10" STYLE="text-align: center">Annual&nbsp;Compensation</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="14" STYLE="text-align: center">Long-Term&nbsp;Compensation</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">Name&nbsp;and<BR> Principal&nbsp;Position</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">Year</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">Salary&nbsp;($)</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">Bonus<BR> ($)</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">Stock<BR> Awards&nbsp;($)</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">Option<BR> Awards&nbsp;($)</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">Non-Equity<BR> Incentive&nbsp;(#)</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">Deferred<BR> Comp<BR> Earnings<BR> ($)</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">All&nbsp;Other&nbsp;($)</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 28%; text-align: center">Carl Kruse Cruz</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: center">&nbsp;</TD><TD STYLE="width: 6%; text-align: center">2012</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 1%; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="width: 6%; font-weight: bold; text-align: right">83,333</TD><TD STYLE="width: 1%; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 1%; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="width: 6%; font-weight: bold; text-align: right">0</TD><TD STYLE="width: 1%; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 1%; font-weight: bold; text-align: left">$</TD><TD STYLE="width: 6%; font-weight: bold; text-align: right">500</TD><TD STYLE="width: 1%; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 6%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 1%; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="width: 6%; font-weight: bold; text-align: right">-</TD><TD STYLE="width: 1%; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 1%; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="width: 6%; font-weight: bold; text-align: right">-</TD><TD STYLE="width: 1%; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 6%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: center">President, Secretary, and</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">-</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: center">Director</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">2011</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: center">Aslam Halim</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">2012</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">25,935</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: center">Executive Vice President, and</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: center">Director</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">2011</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: center">Carl Kruse Velazquez</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">2012</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">-</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">-</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">$</TD><TD STYLE="font-weight: bold; text-align: right">660</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">-</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">-</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">-</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">-</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: center">Treasurer and Director</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">2011</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">-</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">-</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">-</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">-</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">-</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">-</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">-</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
</TABLE>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">There have been no individual grants of
stock options to purchase our common stock made to the executive officer named in the Summary Compensation Table.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>AGGREGATED OPTION EXERCISES AND FISCAL
YEAR-END OPTION VALUE</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">There have been no stock options exercised
by the executive officer named in the Summary Compensation Table.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>LONG-TERM INCENTIVE PLAN (&ldquo;LTIP&rdquo;)
AWARDS</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">There have been no awards made to a named
executive officer in the last completed fiscal year under any LTIP.</P>

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

<!-- Field: Page; Sequence: 27; Value: 2 -->
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    <!-- Field: /Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>COMPENSATION OF DIRECTORS</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Directors are permitted to receive fixed
fees and other compensation for their services as directors. The Board of Directors has the authority to fix the compensation of
directors. No amounts have been paid to, or accrued to, our director in such capacity.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>EMPLOYMENT CONTRACTS AND OFFICERS&rsquo;
COMPENSATION</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Carl Kruse Cruz, the Company&rsquo;s President,
Secretary and Director currently has an employment contract with the Company, which calls for an annual salary of $250,000 effective
September 1, 2012. No other Board members have employment contracts with the Company currently. The Board of Directors will determine
future compensation and, as appropriate, employment agreements executed.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>SECURITY OWNERSHIP OF CERTAIN BENEFICIAL
OWNERS AND MANAGEMENT</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table sets forth, as of the
date of this prospectus, the total number of shares owned beneficially by our directors, officers and key employees, individually
and as a group, and the present owners of 5% or more of our total outstanding shares. The table also reflects what the percentage
of ownership will be assuming completion of the sale of all shares in this offering, which we cannot guarantee. The stockholders
listed below have direct ownership of their shares and possess sole voting and dispositive power with respect to the shares.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 95%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-size: 9pt">Percent&nbsp;of&nbsp;Class</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold"><FONT STYLE="font-size: 9pt">Title&nbsp;of</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold"><FONT STYLE="font-size: 9pt">Name,&nbsp;Title&nbsp;and&nbsp;Address&nbsp;of&nbsp;</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-size: 9pt">Amount&nbsp;of&nbsp;Beneficial</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-size: 9pt">Before</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-size: 9pt">After</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold"><FONT STYLE="font-size: 9pt">Class</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="font-weight: bold"><FONT STYLE="font-size: 9pt">Beneficial Owner&nbsp;of&nbsp;Shares&nbsp;(1)</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-size: 9pt">Ownership&nbsp;(2)</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-size: 9pt">Offering</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-size: 9pt">Offering&nbsp;(3)</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold"><FONT STYLE="font-size: 9pt">4</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 45%"><FONT STYLE="font-size: 9pt">Common</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 25%; text-align: left"><FONT STYLE="font-size: 9pt">Carl Kruse</FONT></TD><TD STYLE="width: 3%"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="width: 6%; text-align: right"><FONT STYLE="font-size: 9pt">500,000</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="width: 6%; text-align: right"><FONT STYLE="font-size: 9pt">.5</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="width: 6%; text-align: right"><FONT STYLE="font-size: 9pt">.3</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">President and Secretary</FONT></TD><TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">Aslam Halim</FONT></TD><TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">25,935,650</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">25.4</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">17.1</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">VP &amp; Director</FONT></TD><TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">Carl Kruse Velazquez 660,000</FONT></TD><TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">.5</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">.4</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">Treasurer and Director</FONT></TD><TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">All Officers and Directors as a Group</FONT></TD><TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">27,095,650</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">26.5</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">17.8</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD></TR>
</TABLE>



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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">1. The address of each executive officer
and director is c/o Zyrox Mining International, Inc., 1800 NE 114<SUP>th</SUP> Street, Suite 609, Miami, Florida 33181.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">2. As used in this table, &ldquo;beneficial
ownership&rdquo; means the sole or shared power to vote, or to direct the voting of, a security, or the sole or share investment
power with respect to a security (i.e., the power to dispose of, or to direct the disposition of a security).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">3. Assumes the sale of the maximum amount
of this offering (50,000,000 shares of common stock) by Zyrox Mining International, Inc. The aggregate amount of shares to be issued
and outstanding after the offering is 152,238,200.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>FUTURE SALES BY EXISTING STOCKHOLDERS</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Further new issues of stock unless registered
will be restricted securities, as that term is defined in Rule 144 of the Rules and Regulations of the SEC promulgated under the
Act. Under Rule 144, such shares can be publicly sold, subject to volume restrictions and certain restrictions on the manner of
sale, commencing one year after their acquisition. Any sale of shares held by the existing stockholders (after applicable restrictions
expire) and/or the sale of shares purchased in this offering (which would be immediately resalable after the offering), may have
a depressive effect on the price of our common stock in any market that may develop, of which there can be no assurance.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We do not currently have any conflicts
of interest by or among our current officer, director, key employee or advisors. We have not yet formulated a policy for handling
conflicts of interest, however, we intend to do so upon completion of this offering and, in any event, prior to hiring any additional
employees.</P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Pursuant to the Articles of Incorporation
and By-Laws of the corporation, we may indemnify an officer or director who is made a party to any proceeding, including a lawsuit,
because of his position, if he acted in good faith and in a manner he reasonably believed to be in our best interest. In certain
cases, we may advance expenses incurred in defending any such proceeding. To the extent that the officer or director is successful
on the merits in any such proceeding as to which such person is to be indemnified, we must indemnify him against all expenses incurred,
including attorney&rsquo;s fees. With respect to a derivative action, indemnity may be made only for expenses actually and reasonably
incurred in defending the proceeding, and if the officer or director is judged liable, only by a court order. The indemnification
is intended to be to the fullest extent permitted by the laws of the State of Nevada.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In the event that a claim for indemnification
against such liabilities, other than the payment by us of expenses incurred or paid by one of our directors, officers, or controlling
persons in the successful defense of any action, suit or proceeding, is asserted by one of our directors, officers, or controlling
person in connection with the securities being registered, we will, unless in the opinion of our 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, and we will be governed by the final adjudication of such issue.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have filed a registration statement
on Form S-1, of which this prospectus is a part, with the U.S. Securities and Exchange Commission. Upon completion of the registration,
we will be subject to the informational requirements of the Exchange Act and, in accordance therewith, will file all requisite
reports, such as Forms 10-K, 10-Q, and 8-K, proxy statements, under Section 14 of the Exchange Act and other information with the
Commission. Such reports, proxy statements, this registration statement and other information, may be inspected and copied at the
public reference facilities maintained by the Commission at 100 Fifth Street NE, Washington, D.C. 20549. Copies of all materials
may be obtained from the Public Reference Section of the Commission&rsquo;s Washington, D.C. office at prescribed rates. You may
obtain information regarding the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. The Commission also
maintains a Web site that contains reports, proxy and information statements and other information regarding registrants that file
electronically with the Commission at http://www.sec.gov.</P>

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

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

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="width: 90%; font-weight: bold">Report of Independent Registered Public Accounting Firm</TD>
    <TD STYLE="width: 10%; font-weight: bold; text-align: center">F-1</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="font-weight: bold">Balance Sheet for Year Ended May 31, 2012 and May 31, 2011</TD>
    <TD STYLE="font-weight: bold; text-align: center">F-2</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="font-weight: bold">Income Statement for Year Ended May 31, 2012 and May 31, 2011</TD>
    <TD STYLE="font-weight: bold; text-align: center">F-3</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="font-weight: bold">Cash Flow Statement for Year Ended May 31, 2012 and May 31, 2011</TD>
    <TD STYLE="font-weight: bold; text-align: center">F-4</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="font-weight: bold">Statement of Stockholder&rsquo;s Equity</TD>
    <TD STYLE="font-weight: bold; text-align: center">F-5</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="font-weight: bold">Notes to Financial Statements</TD>
    <TD STYLE="font-weight: bold; text-align: center">F-6</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="font-weight: bold">Balance Sheet for Quarter Ended August 31, 2012</TD>
    <TD STYLE="font-weight: bold; text-align: center">F-11</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="font-weight: bold">Income Statement for Quarter Ended August 31, 2012</TD>
    <TD STYLE="font-weight: bold; text-align: center">F-12</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="font-weight: bold">Cash Flow Statement for Quarter Ended August 31, 2012</TD>
    <TD STYLE="font-weight: bold; text-align: center">F-13</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="font-weight: bold">Statement of Stockholder&rsquo;s Equity</TD>
    <TD STYLE="font-weight: bold; text-align: center">F-14</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="font-weight: bold">Notes to Financial Statements</TD>
    <TD STYLE="font-weight: bold; text-align: center">F-15</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><U>REPORT OF INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM</U></B></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">CPA Services Corp. Com</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">18501 Pines Boulevard, Suite 204, Pembroke Pines, FL 33029</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">954-261-2413 - FAX: 305-356-7094</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I><U>ACCOUNTANTS AND ADVISORS</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 63pt"><I>PCAOB REGISTERED</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><U>REPORT OF INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM</U></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>To the Board of Directors</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Zyrox Mining International, Inc.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">(A Development Stage Company)</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have audited the accompanying restated
balance sheets of Zyrox International Mining, Inc. (A Development Stage Company) as of May 31, 2012 and 2011, and the related restated
statements of operations, stockholders&rsquo; equity and cash flows through May 31, 2012, 2011 and Inception on June 3, 2009 through
May 31, 2009. These financial statements are the responsibility of the Company&rsquo;s management. Our responsibility is to express
an opinion on these financial statements based on our audits.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We conducted our audits in accordance with
standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the
audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis for our opinion.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In our opinion, the restated financial
statements referred to above present fairly, in all material respects, the financial position of Zyrox Mining International, Inc.
(A Development Stage Company) as of May 31, 2012 and 2011 and the results of its restated operations and its cash flows through
May 31, 2012, 2011 and Inception on June 3, 2009 through May 31, 2010, in conformity with accounting principles generally accepted
in the United States of America.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The accompanying financial statements have
been prepared assuming that the Company will continue as a going concern. The Company has never generated any revenues, has accumulated
a loss of $7,125 and currently lacks the capital to pursue its business plan, which raises substantial doubt about its ability
to continue as a going concern. Management&rsquo;s plans concerning these matters are described in Note I. The financial statements
do not include any adjustments that might result from the outcome of this uncertainty.</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 40%; padding-top: 13px; padding-left: 24px; color: red"></TD>
    <TD STYLE="width: 60%">Sincerely,</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="color: red">&nbsp;</TD>
    <TD STYLE="color: red">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="color: red">&nbsp;</TD>
    <TD>/S/ Enrique Nowogrodzki</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="color: red">&nbsp;</TD>
    <TD STYLE="color: red">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="color: red">&nbsp;</TD>
    <TD>Enrique Nowogrodzki</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ZYROX MINING INTERNATIONAL, INC.</B></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>As at May 31, 2012 and 2011</B></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">May 31, 2012</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">May 31, 2011</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>ASSETS</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 76%; text-align: left; padding-left: 9pt">Cash on hand</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">170</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">170</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 9pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 9pt; padding-bottom: 1pt">Investment in WSVPA Bio Products International, LLC</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">98,482,000</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: left; padding-bottom: 1pt"></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt">TOTAL ASSETS</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">$</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">98,482,170</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">$</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">170</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>LIABILITIES</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9pt">Due to Stockholders</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2,340</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">4,100</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 9pt">Working capital commitment to WSPVA</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,750,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">STOCKHOLDERS&rsquo; EQUITY</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 9pt">Common stock, $.001 par value: 3,000,000,000 shares authorized, 102,238,200 shares issued and outstanding at May 31, 2012</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">102,239</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">98,985</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 9pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 9pt">Capital paid in excess of par value</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">95,633,006</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 9pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 9pt">Preferred shares, $.001 par value:&nbsp; 300,000,000 shares authorized, 855,000 shares Series &ldquo;A&rdquo; issued and outstanding at May 31, 2012 855</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">855</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 9pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 9pt; padding-bottom: 1pt">Accumulated deficit</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">(6,270</TD><TD STYLE="text-align: left; padding-bottom: 1pt">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">103,770</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">TOTAL STOCKHOLDERS&rsquo; EQUITY</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">95,729,830</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">(3,930</TD><TD STYLE="text-align: left; padding-bottom: 1pt">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">TOTAL LIABILITIES &amp; STOCKHOLDERS&rsquo; EQUITY</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">$</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">98,482,170</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">$</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">170</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
</TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><U>The Accompanying Notes Are An Integral Part of these Financial
Statement</U>s</B></P>

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

<!-- Field: Page; Sequence: 32; Value: 1 -->
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    <!-- Field: /Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ZYROX MINING INTERNATIONAL, INC.</B></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>For the years ended May 31, 2012 and
2011</B></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">May 31, 2012</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">May 31, 2011</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 76%; text-align: left">Operating Revenues</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">0</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">0</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Reversal of Issuance of shares for donated services in prior period</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">98,985</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: right; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Net Income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">98,985</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Expense</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Professional fees</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,500</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Bank fees</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">240</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">30</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Office supplies</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Miscellaneous expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,155</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Issuance of shares for services</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">98,885</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Deficit at beginning of year</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(98,985</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"></TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Net loss</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">$</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">(2,340</TD><TD STYLE="text-align: left; padding-bottom: 1pt">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">$</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">(103,770</TD><TD STYLE="text-align: left; padding-bottom: 1pt">)</TD></TR>
</TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><U>The Accompanying Notes Are An Integral Part of these Financial
Statements</U></B></P>

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

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ZYROX MINING INTERNATIONAL, INC.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Source and application of Cash Flows</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>For the years ended May 31, 2012 and
2011</B></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">May 31, 2012</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">May 31, 2011</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Sources and Application of Cash in Bank:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 76%; text-align: left">Net loss</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(2,340</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(103,770</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Income from acquisition activities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">98,985</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Loan from shareholder</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,340</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Less adjustments to reconcile net income (loss) to net cash flows:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 9pt">Reversal of issuance of common shares</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(98,985</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 9pt">Issuance of common shares for donated services</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">98,985</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9pt">Loan from Shareholder converted to common shares</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4,100</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,100</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 9pt">Increase in common stock</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,254</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9pt">Increase in capital paid in excess of par</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">914</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 9pt">Conversion of preferred to common</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(145</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Cash and cash equivalents at beginning of period</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">170</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1pt">Cash and cash equivalents at end of period</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">170</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; text-align: right">170</TD><TD STYLE="padding-bottom: 1pt; font-weight: normal; text-align: left">&nbsp;</TD></TR>
</TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><U>The Accompanying Notes Are An Integral Part of these Financial
Statements</U></B></P>

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

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">ZYROX MINING INTERNATIONAL, INC.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Statement of Stockholders&rsquo; Equity</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>June 1, 2010 through May 31, 2012</B></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Total</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center">&nbsp;</TD><TD NOWRAP>&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">Stated</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">Additional</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">Stockholders&rsquo;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Number</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Value</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Paid-in Capital</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Equity</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center"></TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 52%">Balance &ndash; June 1, 2010</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">1,000,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">1,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right"></TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">1,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Conversion of preferred to common</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(145</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(145</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"></TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(145</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>Issuance of common shares</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">98,984,744</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">98,985</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">98,985</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Accumulated deficit</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"></TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(103,770</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>Balance &ndash; May 31, 2011</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">98,984,599</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">98,985</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,930</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Paid in capital</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">96,136,861</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">96,136,861</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>Issuance of common shares, Note 1</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,253,456</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,100</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,254</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Retained earnings</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">96,645</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 2.5pt">Balance &ndash; May 31, 2012</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">102,238,055</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double">$</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">103,085</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double"></TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double">$</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">96,232,830</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD></TR>
</TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><U>The Accompanying Notes Are An Integral Part of these Financial
Statements</U></B></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ZYROX MINING INTERNATIONAL, INC.</B></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>May 31, 2012 and 2011</B></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Note A &ndash; NATURE OF ACTIVITIES AND ORGANIZATION</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Zyrox Mining International, Inc. (The Company) common
stock trades on the over-the-counter (&ldquo;OTC&rdquo;) market and is currently quoted on the OTC Markets Group Quotation Service
and on other financial websites under the symbol &ldquo;ZYRX&rdquo;. The Company began trading as Riverdale Capital Ltd. under
the symbol &ldquo;RICP&rdquo; on June 3, 2009. On April 30, 2012, he Company changed its name to Diversified Energy &amp; Fuel
International, Inc. Effective August 15, 2012 the Company changed its name to Zyrox Mining International, Inc. and its symbol to
ZYRX.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0in">On September 3, 2009, RICP acquired
Internet Properties Group (&rdquo;IPG)&rdquo;) for 6,430,000 common shares. As a result of the acquisition of IPG, Philip T. Kueber
became the controlling shareholder of the Company, holding 44% of the Common Shares outstanding and 100% of the Preferred Shares
outstanding. On September 30, 2009, this transaction was reversed. As a result of the above situation, the former President/Sole
Director, Philip T. Kueber, resigned from his positions and transferred his interests in the Company for $250,000 he personally
owed to the current President, resulting in a change of control.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0in">On September 8, 2010, FINRA approved
a 1:10,000 reverse split effective September 9, 2010. All financial statements have been adjusted to reflect the reverse.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0in">The Company finalized the acquisition
of a biodegradable plastic manufacturer, WSPVA, Bio Products International, LLC, a Nevada LLC, on March 12, 2012 for 102,238,200
common shares, of which 98,984,744 had been issued to WSPVA shareholders in the prior fiscal year and recorded as Issuance of Common
Shares for Donated Services because of the uncertainty of completing the transaction. The Company now owns 100% of the equity interests
of this wholly owned subsidiary. With the transaction completed, the market value of the shares issued on March 12, 2012 was recorded
as the purchase price for WSPVA.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Company fiscal year end is May 31.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">The Company has not been in bankruptcy, receivership
or any similar proceeding, and continues to review merger-acquisitions as part of its ongoing business strategy.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">The Company does not currently compensate officers
or directors who serve on the board of directors.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B>Management and administrative support: </B>Since
inception, the Company has received the majority of its managerial services and administrative support at no cost from management
and shareholders of the Company.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>NOTE B &ndash; SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0in">The Company prepares its financial
statements in accordance with generally accepted accounting principles in the United States. In the opinion of management, all
adjustments have been made to present fairly the financial statements of the Company. This basis of accounting involves the application
of accrual accounting and consequently, revenues and gains are recognized when earned, and expenses and losses are recognized when
incurred.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The financial statements are expressed in
U.S. funds.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>NOTE C &ndash; CASH EQUIVALENTS</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Cash equivalents include financial instruments with
an original maturity of three months or less. The Company may maintain cash and cash equivalent deposits in excess of federally
insured limits at certain financial institutions.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>NOTE D &ndash; USE OF ESTIMATES</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">The preparation of financial statements in conformity
with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements,
and the reported amounts of revenues and expenses during the reporting period. The financial statements include estimates based
on currently available information and management&rsquo;s judgment as to the outcome of future conditions and circumstances.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Changes in the status of certain facts or circumstances
could result in material changes to the estimates used in the preparation of financial statements and actual results could differ
from the estimates and assumptions.</P>

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

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">NOTE E &ndash; REVENUE RECOGNITION</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">The carrying amounts of share subscriptions receivable
approximate their fair values because of the short-term nature of these instruments. Common shares are valued at the lower of cost
or market value.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>NOTE F &ndash; FAIR VALUE OF FINANCIAL
INSTRUMENTS</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">The carrying amounts of share subscriptions receivable
approximate their fair values because of the short-term nature of these instruments. Common shares are valued at the lower of cost
or market value.</P>

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

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

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">NOTE G &ndash; IMPAIRMENT OF
LONG-LIVED ASSETS</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Long-lived assets held and used by the Company are
reviewed for possible impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be
recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the assets to the
estimated undiscounted cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment
to be recognized is measured by the amount by which the carrying amount of the asset exceeds the fair value thereof.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">In December 2004, the Financial Accounting Standards
Board (&ldquo;FASB&rdquo;) issued Statement No. 153 (SFAS 153), Exchanges of Nonmonetary Assets&mdash;an amendment of APB Opinion
No. 29. The guidance in APB Opinion No. 29, Accounting for Nonmonetary Transactions, is based on the principle that exchanges of
nonmonetary assets should be measured based on the fair value of the assets exchanged. The guidance in that Opinion, however, included
certain exceptions to that principle. This Statement amends Opinion 29 to eliminate the exception for nonmonetary exchanges of
similar productive assets and replaces it with a general exception for exchanges of nonmonetary assets that do not have commercial
substance. A nonmonetary exchange has commercial substance if the future cash flows of the entity are expected to change significantly
as a result of the exchange. The provisions of this Statement shall be effective for nonmonetary asset exchanges occurring in fiscal
periods beginning after September 15, 2006. The adoption of SFAS 153 did not have a material impact on the results of operations.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">In June 2009, the Financial
Accounting Standards Board (&ldquo;FASB&rdquo;) issued &ldquo;The FASB Accounting Standards Codification and the Hierarchy of
Generally Accepted Accounting Principles&rdquo;, which establishes the FASB Accounting Standards Codification (&ldquo; FASB
ASC&rdquo;) as the source of authoritative accounting principles recognized by the FASB to be applied in preparation of
financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP). The
ASC is effective for financial statements issued for interim and annual periods ending after September 15, 2009. The
Codification does not change or alter existing GAAP. The implementation had no impact to the Company&rsquo;s financial
position or results of operations.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>NOTE H &ndash; COMPREHENSIVE INCOME</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">FASB ASC 220-10-20: Comprehensive Income
establishes standards for the reporting and disclosure of comprehensive income and its components, which will be presented in
association with a company's financial statements. Comprehensive income is defined as the change in a business enterprise's
equity during a period arising from transactions, events or circumstances relating to non-owner sources, such foreign
currency translation adjustments and unrealized gains or losses on available-for-sale securities. It includes all changes in
equity during a period except those resulting from investments by or distributions to owners.</P>

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

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

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal">NOTE
I &ndash; CAPITAL STOCK</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Management
has developed a strategic plan to develop its management team and to increase its acquisition of synergistic properties. Management
anticipates generating sufficient revenue to fund the operations of the Company during the next fiscal year and to acquire an
additional subsidiary.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>NOTE
J &ndash; CAPITAL STOCK</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Common
Shares Authorized &ndash; 3,000,000,000 common shares of $.001 par value</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Issued
and Outstanding &ndash; 102 238,200 common shares</FONT></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 90%; border-collapse: collapse; margin-left: 0.5in">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 27%"><FONT STYLE="font-family: Times New Roman, Times, Serif">Preferred Shares Authorized</FONT></TD>
    <TD STYLE="width: 73%"><FONT STYLE="font-family: Times New Roman, Times, Serif">- 100,000,000 Series &ldquo;A&rdquo;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">- 100,000,000 Series &ldquo;B&rdquo;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">- 100,000,000 Series &ldquo;C&rdquo;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Issued and Outstanding</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">- 855,000 preferred shares Series &ldquo;A&rdquo;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>NOTE
K &ndash; CONTINGENCIES</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">The Company may from time to time be subject to legal
proceedings and claims that may arise in the ordinary course of its business. There are no legal matters pending at the present
date.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>NOTE L &ndash; SUBSEQUENT EVENTS</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Management is currently in negotiations with Zyrox
Mining Co., Ltd., a British Columbia mining operation and has signed a Memorandum of Understanding with the Zyrox shareholders.
Discussions with a local Venture Capital firm are being finalized to obtain the necessary capital to close the transaction and
to expand the current operation.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">The Company has engaged an attorney to file an S-1
to achieve fully reporting status with the SEC. The Company aspires to be a fully reporting company by the end of 4th quarter 2012.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>NOTE M &ndash; CERTIFICATION INFORMATION
AND DISCLOSURE STATEMENT</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">All information furnished herein has been prepared
from the books and records obtain from Zyrox Mining International, Inc. in accordance with rule 15c2-11 (a)(5) promulgated under
the Securities and Exchange Act of 1934, as amended, and is intended as information to be used by the public.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">No dealer, salesman or any other person has been authorized
to give any information or to make any representations not contained herein in connection with the Company. Any representations
not contained herein must not be relied upon as having been made or authorized by the Company.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B>NOTE N - CAUTIONARY STATEMENT FOR PURPOSES OF THE
&ldquo;SAFE HARBOR&rdquo; PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0in">Any statements in this report that
are not historical facts are intended to fall within the safe harbor for forward-looking statements provided by the Private Securities
Litigation Reform Act of 1995. These statements may be identified by such forward-looking terminology as &ldquo;expect&rdquo;,
&ldquo;look&rdquo;, &ldquo;believe&rdquo;, and &ldquo;anticipate&rdquo;, &ldquo;may&rdquo;, &ldquo;will&rdquo;, or similar statements
or variations of such terms. Any forward-looking statements should be considered in light of the risks and uncertainties associated
with Zyrox Mining International, Inc. and its businesses, economic and market conditions prevailing from time to time, and the
application and interpretation of Federal and state tax laws and regulations, all of which are subject to material changes and
which may cause actual results to vary materially from what had been anticipated. Certain factors that could affect Zyrox Mining
International, Inc. include conditions affecting revenues, reliance on key personnel, competition, and regulatory and legal matters.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Zyrox Mining International, Inc.</B></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>As at August 31, 2012</B></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>ASSETS</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 88%; text-align: left; padding-left: 9pt">Cash in Bank</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">7,420</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 9pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 9pt">Investment in WSVPA Bio Products International, LLC</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">98,985,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt">TOTAL ASSETS</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">98,992,420</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>LIABILITIES</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9pt">Due to Stockholder</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">88,746</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 9pt">Working Capital Commitment to WSVPA</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,750,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">STOCKHOLDERS&rsquo; EQUITY</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 9pt">Common stock, $.001 par value: 3,000,000,000 shares authorized, 102,238,200 shares issued and outstanding at August 31<SUP>st</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">102,239</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 9pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 9pt">Capital paid in excess of par value</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">96,136,861</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 9pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 9pt">Preferred shares, $.001 par value:&nbsp; 300,000,000 shares authorized, 855,000 shares Series &ldquo;A&rdquo; issued and outstanding at August 31st </TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">855</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 9pt">Accumulated deficit</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(86,281</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">TOTAL STOCKHOLDERS&rsquo; EQUITY</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">96,153,674</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">TOTAL LIABILITIES &amp; STOCKHOLDERS&rsquo; EQUITY</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">98,992,420</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><U>The Accompanying Notes Are An Integral Part of these Financial
Statements</U></B></P>

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

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    <!-- Field: /Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Zyrox Mining International, Inc.</B></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>For the three months ended August 31,
2012</B></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 88%; text-align: left">Operating Revenues</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">0</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Professional fees</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">39,853</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Claims options</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">32,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Bank fees</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">240</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Office supplies</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,413</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Net loss</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(79,156</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
</TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><U>The Accompanying Notes Are An Integral Part of these Financial
Statements</U></B></P>

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

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Zyrox Mining International, Inc.</B></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>For the three months ended August 31,
2012</B></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">OPERATING ACTIVITIES</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 88%; text-align: left">Net loss</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(79,156</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Loan from shareholder</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">86,406</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 1pt">Cash at beginning of period</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">170</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">Cash at end of period</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">7,420</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>The Accompanying Notes Are An Integral Part of these
Financial Statements</U></P>

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

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Zyrox
Mining International, Inc.</B></P>

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

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

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 0.75pt; border-top: Black 0.75pt solid; border-bottom: Black 0.75pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

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



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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>For the three months ended August 31,
2012</B></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center">Number</TD><TD NOWRAP>&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center">Stated</TD><TD NOWRAP>&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center">Additional</TD><TD NOWRAP>&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center">Stockholders&rsquo;</TD><TD NOWRAP>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">of Shares</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">Value</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">Paid-in Capital</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">Equity</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 52%">Balance &ndash; May 31, 2012</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">102,239,055</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">103,094</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">96,136,861</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">96,232,830</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Retained earnings decrease</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(79,156</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 2.5pt">Balance &ndash; August 31, 2012</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">102,239,055</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double">$</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">103,094</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">&nbsp;</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double">$</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">96,153,674</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD></TR>
</TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><U>The Accompanying Notes Are An Integral Part of these Financial
Statements</U></B></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Zyrox Mining International, Inc.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>August 31, 2012</B></P>

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

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

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



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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>NOTE A &ndash; NATURE OF ACTIVITIES AND ORGANIZATION</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Zyrox Mining International, Inc. (The Company) common
stock trades on the over-the-counter (&ldquo;OTC&rdquo;) market and is currently quoted on the OTC Markets Group Quotation Service
and on other financial websites under the symbol &ldquo;ZYRX&rdquo;. The Company began trading as Riverdale Capital Ltd. under
the symbol &ldquo;RICP&rdquo; on June 3, 2009. On April 30, 2012, he Company changed its name to Diversified Energy &amp; Fuel
International, Inc. Effective August 15, 2012 the Company changed its name to Zyrox Mining International, Inc. and its symbol to
ZYRX.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0in">On September 3, 2009, RICP acquired
Internet Properties Group (&rdquo;IPG)&rdquo;) for 6,430,000 common shares. As a result of the acquisition of IPG, Philip T. Kueber
became the controlling shareholder of the Company, holding 44% of the Common Shares outstanding and 100% of the Preferred Shares
outstanding. On September 30, 2009, this transaction was reversed. As a result of the above situation, the former President/Sole
Director, Philip T. Kueber, resigned from his positions and transferred his interests in the Company for $250,000 he personally
owed to the current President, resulting in a change of control.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0in">On September 8, 2010, FINRA approved
a 1:10,000 reverse split effective September 9, 2010. All financial statements have been adjusted to reflect the reverse.<BR STYLE="mso-special-character: line-break">
<BR STYLE="mso-special-character: line-break">
</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0in">The Company finalized the acquisition
of a biodegradable plastic manufacturer, WSPVA, Bio Products International, LLC, a Nevada LLC, on March 12, 2012 for 102,238,200
common shares, of which 98,984,744 had been issued to WSPVA shareholders in the prior fiscal year and recorded as Issuance of Common
Shares for Donated Services because of the uncertainty of completing the transaction. The Company now owns 100% of the equity interests
of this wholly owned subsidiary. With the transaction completed, the market value of the shares issued on March 12, 2012 was recorded
as the purchase price for WSPVA.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Company fiscal year end is May 31.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">The Company has not been in bankruptcy, receivership
or any similar proceeding, and continues to review merger-acquisitions as part of its ongoing business strategy.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">The Company does not currently compensate officers
or directors who serve on the board of directors.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B>Management and administrative support: </B>Since
inception, the Company has received the majority of its managerial services and administrative support at no cost from management
and shareholders of the Company.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>NOTE B &ndash; SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0in">The Company prepares its financial
statements in accordance with generally accepted accounting principles in the United States. In the opinion of management, all
adjustments have been made to present fairly the financial statements of the Company. This basis of accounting involves the application
of accrual accounting and consequently, revenues and gains are recognized when earned, and expenses and losses are recognized when
incurred.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The financial statements are expressed in
U.S. funds.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>NOTE C &ndash; CASH EQUIVALENTS</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Cash equivalents include financial instruments with
an original maturity of three months or less. The Company may maintain cash and cash equivalent deposits in excess of federally
insured limits at certain financial institutions.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>NOTE D &ndash; USE OF ESTIMATES</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">The preparation of financial statements in conformity
with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements,
and the reported amounts of revenues and expenses during the reporting period. The financial statements include estimates based
on currently available information and management&rsquo;s judgment as to the outcome of future conditions and circumstances.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Changes in the status of certain facts or circumstances
could result in material changes to the estimates used in the preparation of financial statements and actual results could differ
from the estimates and assumptions.</P>

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

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal">NOTE
E &ndash; REVENUE RECOGNITION</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
carrying amounts of share subscriptions receivable approximate their fair values because of the short-term nature of these instruments.
Common shares are valued at the lower of cost or market value.</FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>NOTE F &ndash; FAIR VALUE OF FINANCIAL
INSTRUMENTS</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">The carrying amounts of share subscriptions receivable
approximate their fair values because of the short-term nature of these instruments. Common shares are valued at the lower of cost
or market value.</P>

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

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal">NOTE
G &ndash; IMPAIRMENT OF LONG-LIVED ASSETS</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Long-lived assets held and used by the Company are
reviewed for possible impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be
recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the assets to the
estimated undiscounted cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment
to be recognized is measured by the amount by which the carrying amount of the asset exceeds the fair value thereof.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">In December 2004, the Financial Accounting Standards
Board (&ldquo;FASB&rdquo;) issued Statement No. 153 (SFAS 153), Exchanges of Nonmonetary Assets&mdash;an amendment of APB Opinion
No. 29. The guidance in APB Opinion No. 29, Accounting for Nonmonetary Transactions, is based on the principle that exchanges of
nonmonetary assets should be measured based on the fair value of the assets exchanged. The guidance in that Opinion, however, included
certain exceptions to that principle. This Statement amends Opinion 29 to eliminate the exception for nonmonetary exchanges of
similar productive assets and replaces it with a general exception for exchanges of nonmonetary assets that do not have commercial
substance. A nonmonetary exchange has commercial substance if the future cash flows of the entity are expected to change significantly
as a result of the exchange. The provisions of this Statement shall be effective for nonmonetary asset exchanges occurring in fiscal
periods beginning after September 15, 2006. The adoption of SFAS 153 did not have a material impact on the results of operations.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">In June 2009, the Financial Accounting
Standards Board (&ldquo;FASB&rdquo;) issued &ldquo;The FASB Accounting Standards Codification and the Hierarchy of Generally
Accepted Accounting Principles&rdquo;, which establishes the FASB Accounting Standards Codification (&ldquo; FASB ASC&rdquo;)
as the source of authoritative accounting principles recognized by the FASB to be applied in preparation of financial
statements in conformity with accounting principles generally accepted in the United States of America (GAAP). The ASC is
effective for financial statements issued for interim and annual periods ending after September 15, 2009. The Codification
does not change or alter existing GAAP. The implementation had no impact to the Company&rsquo;s financial position or results
of operations.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>NOTE H &ndash; COMPREHENSIVE INCOME</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">FASB ASC 220-10-20: Comprehensive Income
establishes standards for the reporting and disclosure of comprehensive income and its components, which will be presented in
association with a company's financial statements. Comprehensive income is defined as the change in a business enterprise's
equity during a period arising from transactions, events or circumstances relating to non-owner sources, such foreign
currency translation adjustments and unrealized&#9;gains or losses on available-for-sale securities. It includes all changes
in equity during a period except those resulting from investments by or distributions to owners.</P>

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

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

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal">NOTE
I &ndash; CAPITAL STOCK</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Management
has developed a strategic plan to develop its management team and to increase its acquisition of synergistic properties. Management
anticipates generating</FONT> sufficient revenue to fund the operations of the Company during the next fiscal year and to acquire
an additional subsidiary.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>NOTE J &ndash; CAPITAL STOCK</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Common Shares Authorized &ndash; 3,000,000,000 common
shares of $.001 par value</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Issued and Outstanding &ndash; 102 238,200 common
shares</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 90%; border-collapse: collapse; margin-left: 0.5in">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 27%">Preferred Shares Authorized</TD>
    <TD STYLE="width: 73%">- 100,000,000 Series &ldquo;A&rdquo;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>- 100,000,000 Series &ldquo;B&rdquo;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>- 100,000,000 Series &ldquo;C&rdquo;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>Issued and Outstanding</TD>
    <TD>- 855,000 preferred shares Series &ldquo;A&rdquo;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>NOTE K &ndash; CONTINGENCIES</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">The Company may from time to time be subject to legal
proceedings and claims that may arise in the ordinary course of its business. There are no legal matters pending at the present
date.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>NOTE L &ndash; SUBSEQUENT EVENTS</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Management is currently in negotiations with Zyrox
Mining Co., Ltd., a British Columbia mining operation and has signed a Memorandum of Understanding with the Zyrox shareholders.
Discussions with a local Venture Capital firm are being finalized to obtain the necessary capital to close the transaction and
to expand the current operation.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">The Company has engaged an attorney to file an S-1
to achieve fully reporting status with the SEC. The Company aspires to be a fully reporting company by the end of 4th quarter 2012.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>NOTE M &ndash; CERTIFICATION INFORMATION
AND DISCLOSURE STATEMENT</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">All information furnished herein has been prepared
from the books and records obtain from Zyrox Mining International, Inc. in accordance with rule 15c2-11 (a)(5) promulgated under
the Securities and Exchange Act of 1934, as amended, and is intended as information to be used by the public.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">No dealer, salesman or any other person has been authorized
to give any information or to make any representations not contained herein in connection with the Company. Any representations
not contained herein must not be relied upon as having been made or authorized by the Company.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B>NOTE N - CAUTIONARY STATEMENT FOR PURPOSES OF THE
&ldquo;SAFE HARBOR&rdquo; PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0in">Any statements in this report that
are not historical facts are intended to fall within the safe harbor for forward-looking statements provided by the Private Securities
Litigation Reform Act of 1995. These statements may be identified by such forward-looking terminology as &ldquo;expect&rdquo;,
&ldquo;look&rdquo;, &ldquo;believe&rdquo;, and &ldquo;anticipate&rdquo;, &ldquo;may&rdquo;, &ldquo;will&rdquo;, or similar statements
or variations of such terms. Any forward-looking statements should be considered in light of the risks and uncertainties associated
with Zyrox Mining International, Inc. and its businesses, economic and market conditions prevailing from time to time, and the
application and interpretation of Federal and state tax laws and regulations, all of which are subject to material changes and
which may cause actual results to vary materially from what had been anticipated. Certain factors that could affect Zyrox Mining
International, Inc. include conditions affecting revenues, reliance on key personnel, competition, and regulatory and legal matters.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>DEALER PROSPECTUS DELIVERY OBLIGATION</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&ldquo;UNTIL<FONT STYLE="background-color: yellow">___________________________</FONT>,
ALL DEALERS THAT EFFECT TRANSACTIONS IN THESE SECURITIES, WHETHER OR NOT PARTICIPATING IN THIS OFFERING, MAY BE REQUIRED TO DELIVER
A PROSPECTUS. THIS IS IN ADDITION TO THE DEALERS&rsquo; OBLIGATION TO DELIVER A PROSPECTUS WHEN ACTING AS UNDERWRITERS AND WITH
RESPECT TO THEIR UNSOLD ALLOTMENTS OR SUBSCRIPTIONS.&rdquo;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PART II &ndash; INFORMATION NOT REQUIRED
IN PROSPECTUS</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>ITEM 13. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table sets forth the costs
and expenses payable by Zyrox Mining International, Inc. in connection with registering the sale of the common stock. Zyrox Mining
International, Inc. has agreed to pay all costs and expenses in connection with this offering of common stock. Set for the below
is the estimated expenses of issuance and distribution, assuming the maximum proceeds are raised.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 50%; font: 10pt Times New Roman, Times, Serif; margin-left: 1in">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 84%; text-align: left">Legal and Professional Fees</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 13%; text-align: right">14,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Accounting Fees</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">10,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Audit Fees</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">$</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">3,000</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 2.5pt">Total</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double">$</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">27,000</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD></TR>
</TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>ITEM 14. INDEMNIFICATION OF DIRECTORS
AND OFFICERS</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As permitted by the Nevada General Corporation Law, we have
adopted provisions in our by-laws to be in effect that limits or eliminates the personal liability of our directors. Consequently,
a director will not be personally liable to us, or our stockholders, for monetary damages or breach of fiduciary duty as a director,
except for liability for:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#9679;&nbsp;&nbsp;&nbsp; any breach of
the director's duty of loyalty to us or our stockholders;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#9679; &nbsp;&nbsp;&nbsp;any act or omission
not in good faith or that involves intentional misconduct or a knowing violation of law;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#9679; &nbsp;&nbsp;&nbsp;any unlawful
payments related to dividends or unlawful stock repurchases, redemptions or other distributions; or</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#9679; &nbsp;&nbsp;&nbsp;any transaction
from which the director derived an improper personal benefit.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">These limitations of liability do not alter
director liability under the federal securities laws and do not affect the availability of equitable remedies such as an injunction
or rescission.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition, our by-laws provide that:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#9679; &nbsp;&nbsp;&nbsp;we will indemnify
our directors, officers and, in the discretion of our board of directors, certain employees to the fullest extent permitted by
the Nevada General Corporation Law; and</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#9679; &nbsp;&nbsp;&nbsp;we will advance
expenses, including attorneys' fees, to our directors and, in the discretion of our board of directors, to our officers and certain
employees, in connection with legal proceedings, subject to limited exceptions.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;We intend to obtain and thereafter
maintain general liability insurance that covers certain liabilities of our directors and officers arising out of claims based
on acts or omissions in their capacities as directors or officers, including liabilities under the Securities Act of 1933, as amended.
Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers, or persons
controlling the Company pursuant to the foregoing provisions, we have been informed that in the opinion of the Securities and Exchange
Commission such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">These provisions may discourage stockholders
from bringing a lawsuit against our directors for breach of their fiduciary duty. These provisions may also have the effect of
reducing the likelihood of derivative litigation against directors and officers, even though such an action, if successful, might
otherwise benefit our stockholders and us. Furthermore, a stockholder's investment may be adversely affected to the extent we pay
the costs of settlement and damage awards against directors and officers pursuant to these indemnification provisions. We believe
that these provisions, the indemnification agreements and the insurance are necessary to attract and retain talented and experienced
directors and officers.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">At present, there is no pending litigation
or proceeding involving any of our directors or officers where indemnification will be required or permitted. We are not aware
of any threatened litigation or proceedings that might result in a claim for such indemnification.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>ITEM 15. RECENT SALES OF UNREGISTERED SECURITIES</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.4in; text-align: justify">6,430,000 common shares were
issued on September 3, 2009 to Phillip Kueber for the acquisition of Internet Properties Group Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 103.7pt; text-align: justify; text-indent: -0.4in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.4in; text-align: justify">960,000,000 common shares were
issued on December 23, 2009 for a proposed capital raise (400,000,000 to Phillip Kueber, 400,000,000 to Debbie Smith, 80,000,000
to Qualstar Capital Group and 80,000,000 to Fordee CA Trust).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 103.7pt; text-align: justify; text-indent: -0.4in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.4in; text-align: justify">1,600,000,000 shares were issued
half to Phil Kueber and half to Debbie Smith on December 28, 2009 for a $75,000 debt repayment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 103.7pt; text-align: justify; text-indent: -0.4in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.4in; text-align: justify">200,000,000 shares were issued
to Qualstar Capital Corp. and 200,000,000 to Fordee CA Trust on May 18, 2010 for an acquisition and a proposed capital raise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 103.7pt; text-align: justify; text-indent: -0.4in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.4in; text-align: justify">All of the above shares were
reversed 1:10,000 on September 8, 2010.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 103.7pt; text-align: justify; text-indent: -0.4in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.4in; text-align: justify">98,482,000 common shares were
issued to 26 former WVSPA investors and 3,756,000 shares to others to acquire WVSPA Bio Products International LLC by May 12, 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.4in; text-align: justify; text-indent: -0.4in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>ITEM 16. EXHIBITS.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following exhibits are included with this registration statement:</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 65%; border-collapse: collapse; margin-left: 0.25in">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 23%; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Exhibit Number.</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 75%; font-weight: bold; border-bottom: Black 1pt solid">Name/Identification of Exhibit</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">3.1</TD>
    <TD>&nbsp;</TD>
    <TD>Articles of Incorporation</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">3.2</TD>
    <TD>&nbsp;</TD>
    <TD>Amended Articles of Incorporation</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">3.3</TD>
    <TD>&nbsp;</TD>
    <TD>Bylaws</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">5</TD>
    <TD>&nbsp;</TD>
    <TD>Opinion of Joseph L. Pittera, Esq.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">23.1</TD>
    <TD>&nbsp;</TD>
    <TD>Consent of Independent Auditor</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">23.2</TD>
    <TD>&nbsp;</TD>
    <TD>Consent of Counsel (See Exhibit 5)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">99.1</TD>
    <TD>&nbsp;</TD>
    <TD>Subscription Agreement</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>ITEM 17. UNDERTAKINGS</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under Rule 415 of the Securities Act, we
are registering securities for an offering to be made on a continuous or delayed basis in the future. The registration statement
pertains only to securities (a) the offering of which will be commenced promptly, will be made on a continuous basis and may continue
for a period in excess of 30 days from the date of initial effectiveness and (b) are registered in an amount which, at the time
the registration statement becomes effective, is reasonably expected to be offered and sold within two years from the initial effective
date of the registration.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Based on the above-referenced facts and
in compliance with the above-referenced rules, Zyrox Mining International, Inc. includes the following undertakings in this Registration
Statement:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A. The undersigned Registrant hereby undertakes:</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">(i) To include any prospectus required
by section 10(a)(3) of the Securities Act of 1933, as amended;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">(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 SEC pursuant to Rule 424(b) if, in the aggregate, the changes in
the volume and price represent no more than a 20% change in the maximum aggregate offering price set forth in the &ldquo;Calculation
of the Registration Fee&rdquo; table in the effective Registration Statement; and</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">(1) That, for the purpose of determining
any liability under the Securities Act of 1933, as amended, 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.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">(2) 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.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">B. Insofar as indemnification for liabilities
arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the Registrant, 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 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 Act and will be governed by the final adjudication of such issue.</P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In accordance with 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
of filing on Form S-1 and authorized this Registration Statement to be signed on its behalf by the undersigned, in the City of
Miami, State of Florida on September 20, 2012.</P>

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

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD COLSPAN="3" STYLE="font-weight: bold; text-decoration: underline; text-align: center">Zyrox Mining International, Inc.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="3" STYLE="text-align: center">(Registrant)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="3">&nbsp;</TD></TR>
<TR>
    <TD STYLE="width: 45%; vertical-align: bottom; text-align: right">By: &nbsp;</TD>
    <TD STYLE="width: 15%; vertical-align: bottom; border-bottom: windowtext 1pt solid">/s/Carl Kruse</TD>
    <TD STYLE="width: 40%; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="3" STYLE="text-align: center">President, Secretary and Director</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In accordance with the requirements of
the Securities Act of 1933, this Registration Statement was signed by the following persons in the capacities and on the dates
stated:</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 29%; text-align: center; border-bottom: Black 1pt solid">Signature</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 32%; text-align: center; border-bottom: Black 1pt solid">Title</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 35%; text-align: center; border-bottom: Black 1pt solid">Date</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid">/s/ Carl Kruse</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">President, Secretary and Director</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">September 20, 2012</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid">/s/ Aslam Halim</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">Executive Vice President, and Director</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">September 20, 2012</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid">/s/ Carl Kruse Velazquez</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">Treasurer and Director</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">September 20, 2012</TD></TR>
</TABLE>
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[{"type": "S-1", "sequence": "1", "filename": "v324192_s1.htm", "description": "FORM S-1", "secsgml_size_bytes": 448808}]
{"company-data": {"conformed-name": "ZYROX MINING INTERNATIONAL INC", "cik": "0001558740", "irs-number": "272052033", "state-of-incorporation": "NV", "fiscal-year-end": "0531"}, "filing-values": {"form-type": "S-1", "act": "33", "file-number": "333-184100", "film-number": "121110107"}, "business-address": {"street1": "1800 NE 114 STREET", "street2": "SUITE 609", "city": "MIAMI", "state": "FL", "zip": "33181", "phone": "305 607 9518"}, "mail-address": {"street1": "1800 NE 114 STREET", "street2": "SUITE 609", "city": "MIAMI", "state": "FL", "zip": "33181"}}
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM S-1
REGISTRATION STATEMENT
Under
The Securities Act of 1933
Zyrox Mining International, Inc. (formerly
Diversified Energy & Fuel, Inc.)
(Name of small business issuer in its charter)
Nevada
2821, 2673
27-2052033
(State or jurisdiction of incorporation or
(Primary Standard Industrial Classification
(IRS Employer Identification No.)
organization)
Code Number)
Zyrox Mining International, Inc.
1800 NE 114 Street, Suite
609
Miami, Florida 33181-3414
Telephone (855) 229-9979
(Address and telephone number of Registrant's
principal executive offices)
Laughlin Associates
9120 Double Diamond Parkway
Reno NV 89521
Telephone 800 648 0966, Fax: (775) 883
4874
(Name, address and telephone number of Registrant's
agent for service)
Please send copies of all communications
to:
Joseph Lambert Pittera, Esq.
Law Offices of Joseph Lambert Pittera
2214 Torrance Boulevard
Torrance, California 90501
Telephone: (310) 328-3588
Facsimile No. (310) 328-3063
APPROXIMATE DATE OF PROPOSED SALE TO
THE PUBLIC:
As soon as practicable after this Registration
Statement becomes effective.
If any of the securities being registered
on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the
following box.
x
If this Form is filed to register additional
securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities
Act Registration Statement number of the earlier effective Registration Statement for the same offering.
¨
If this Form
is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities
Act Registration Statement number of the earlier effective Registration Statement for the same offering
.
¨
If this Form
is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities
Act Registration Statement number of the earlier effective Registration Statement for the same offering
.
¨
If delivery of the prospectus is expected
to be made pursuant to Rule 434, check the following box.
¨
Indicate by check mark whether the registrant
is a large accelerated filer, an accelerated filer, a non-accelerated filed or a smaller reporting company.
Large accelerated filer
¨
Accelerated filer
¨
Non-accelerated filer
¨
Smaller reporting company
x
CALCULATION OF REGISTRATION FEE
Proposed
Amount to
Proposed
Maximum
Title of Each Class
be
Maximum
Aggregate
Amount of
of Securities to be
Registered
Offering Price
Offering Price
Registration
Registered
(1)
Per Share ($)
($)(2)
Fee($)
Shares of Common Stock, $ Par Value $.001
50,000,000
$
.25
(1)
$
12,500,000
$
$1,432.50
1
50,000,000 shares are being offered by a direct offering at the price of $.25 per share.
2
Estimated solely for purposes of calculating the registration fee in accordance with Rule 457 of the Securities Act, based upon the fixed price of the direct offering.
The Registrant hereby amends this Registration
Statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment
which specifically states that this Registration Statement shall thereafter become effective in accordance with Section 8(a) of
the Securities Act of 1933 or until the Registration Statement shall become effective on such date as the Commission, acting pursuant
to said Section 8(a), may determine.
The information in this prospectus is not
complete and may be changed. Neither we, nor the selling shareholders, may sell these securities until the registration statement
filed with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell these securities and neither
we, nor the selling stockholders, are soliciting offers to buy these securities in any state where the offer of sale is not permitted.
Prospectus
Zyrox Mining International, Inc.
1800 NE 114 Street, Suite 609
Miami, Florida 33181-3414
Telephone (305) 891-8915 and (305) 607
9518
A Maximum of 50,000,000 Shares of Common
Stock
At $.25 Per Share
Zyrox Mining International, Inc. ("Company")
is registering a maximum of 50,000,000 shares of its common stock at a fixed price of $.25 per share for sale to the general
public
in an officer/director best effort offering
. The Issuer will not be allowed access to any funds until the minimum of $6,250,000
has been deposited into its escrow account signifying the sale of at least a minimum of 25,000,000 common shares.
The Company is a development stage start-up,
and currently has limited operations. Any investment in the shares offered herein involves a high degree of risk. You should only
purchase shares if you can afford a complete loss of your investment.
Prior to this offering, there has been
no public market for Zyrox Mining International, Inc.'s common stock.
BEFORE INVESTING, YOU SHOULD CAREFULLY
READ THIS PROSPECTUS AND, PARTICULARLY, THE RISK FACTORS SECTION, BEGINNING ON PAGE 7.
NEITHER THE U.S. SECURITIES AND EXCHANGE
COMMISSION NOR ANY STATE SECURITIES DIVISION HAS APPROVED OR DISAPPROVED THESE SECURITIES, OR DETERMINED IF THIS PROSPECTUS IS
TRUTHFUL OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
Number of Shares
Offering Price
Underwriting Discounts
&
Commissions
Proceeds to the
Company
Per Share
1
$
$
0.00
$
Maximum
50,000,000
$
$.25
$
0.00
$
12,500,000
Minimum
25,000,000
$
$.25
$
0.00
$
6,250,000
The information in this prospectus is not
complete and may be changed. Zyrox Mining International, Inc. may not sell these securities until the registration statement filed
with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell these securities and it is not
soliciting an offer to buy these securities in any state where the offer or sale is not permitted.
Zyrox Mining
International, Inc. does not plan to use this offering prospectus before the effective date
.
Subject to Completion, Dated September ___,
2012
2
TABLE OF CONTENTS
PAGE
SUMMARY OF PROSPECTUS
5
COMPANY OVERVIEW
5
THE OFFERING
5
RISK FACTORS
6
RISKS ASSOCIATED WITH OUR COMPANY
6
RISKS ASSOCIATED WITH THIS OFFERING
9
USE OF PROCEEDS
10
DETERMINATION OF OFFERING PRICE
10
DILUTION OF THE PRICE YOU PAY FOR YOUR SHARES
10
PLAN OF DISTRIBUTION
11
OFFERING WILL BE SOLD BY OUR OFFICER AND DIRECTOR
11
TERMS OF THE OFFERING
11
DEPOSIT OF OFFERING PROCEEDS
12
PROCEDURES FOR AND REQUIREMENTS FOR SUBSCRIBING
12
DESCRIPTION OF SECURITIES
12
COMMON STOCK
12
NON-CUMULATIVE VOTING
12
CASH DIVIDENDS
12
INTEREST OF NAMED EXPERTS AND COUNSEL
13
DESCRIPTION OF OUR BUSINESS
13
GENERAL INFORMATION
13
INDUSTRY BACKGROUND
13
PRINCIPAL PRODUCTS AND THEIR MARKETS
13
DISTRIBUTION METHODS
16
COMPETITION
17
SOURCES AND AVAILABILITY OF PRODUCTS
18
DEPENDENCE ON ONE OR A FEW MAJOR CUSTOMERS
19
PATENTS AND TRADEMARKS
19
NEED FOR ANY GOVERNMENT APPROVAL OR PRINCIPAL PRODUCTS
20
GOVERNMENT AND INDUSTRY REGULATION
20
ENVIRONMENTAL LAWS
20
EMPLOYEES AND EMPLOYMENT AGREEMENTS
20
LEGAL PROCEEDINGS
20
MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS
20
PENNY STOCK RULES
21
REPORTS
22
STOCK TRANSFER AGENT
22
FINANCIAL STATEMENTS
22
MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
22
MANAGEMENT'S PLAN OF OPERATION
22
GOING CONCERN
22
RESULTS OF OPERATIONS
22
PROPOSED MILESTONES TO IMPLEMENT BUSINESS OPERATIONS
23
CRITICAL ACCOUNTING POLICIES
23
DIRECTOR, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS
25
BACKGROUND INFORMATION ABOUT OUR OFFICERS AND DIRECTORS
26
CORPORATE GOVERNANCE GUIDELINES
26
SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE
26
EXECUTIVE COMPENSATION
27
OPTION GRANTS
27
AGGREGATED OPTION EXERCISES AND FISCAL YEAR-END OPTION VALUE
27
LONG-TERM INCENTIVE PLAN ("LTIP") AWARDS
27
3
COMPENSATION OF DIRECTORS
28
EMPLOYMENT CONTRACTS AND OFFICERS' COMPENSATION
28
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
28
FUTURE SALES BY EXISTING STOCKHOLDERS
28
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
28
INDEMNIFICATION
29
AVAILABLE INFORMATION
29
ABOUT THIS PROSPECTUS
You should rely only on the information
contained in this prospectus. Neither we, nor the selling shareholders have authorized anyone to provide you with different or
additional information. We take no responsibility for, and can provide no assurance as to the reliability of, any other information
that others may give you. This prospectus is not an offer to sell nor is it seeking an offer to buy shares of our common stock
in any jurisdiction where the offer or sale is not permitted. The information contained in this prospectus is correct only as of
the date of this prospectus, regardless of the time of the delivery of this prospectus or any sale of shares of our common stock.
4
PROSPECTUS SUMMARY
You should read the following summary together
with the more detailed business information, financial statements and related notes that appear elsewhere in this prospectus. In
this prospectus, unless the context otherwise denotes, references to "we," "us," "our," and
"Company" are to Zyrox Mining International, Inc.
COMPANY OVERVIEW
Zyrox Mining
International, Inc. (formerly Diversified Energy & Fuel, Inc. until August 15, 2012)
was incorporated in the State of
Nevada on June 3, 2009. Zyrox Mining International, Inc. began formal operations on June 3, 2009, with the principle purpose of
developing, marketing and selling software products through the Internet, and to provide web based services for individuals and
small business. During 2010, this business was discontinued and management focused on developing a biodegradable plastic opportunity.
On November 8, 2010, the Company entered
into an agreement to acquire 100% of the Membership Interests of WSVPA Bio Products Incorporated, a Nevada LLC in consideration
for 102,238,200 shares of common stock. After completion of their due diligence, WSPVA formally closed on the transaction on May
12, 2012. The Company subsequently received 500,000,000 Class "A" membership units and 1,000,000 Class "B"
membership units representing 100% of the membership interest of WSPVA (dissolvingplastic.com) in return for 102,238,200 common
shares of the Company and WSPVA is now a wholly owned subsidiary of the Company.
On August 17, 2010, the then Chief Executive
Officer resigned and appointed Carl H. Kruse as sole Director and Chief Executive Officer. Carl H. Kruse became the majority shareholder
at that time by virtue of a Stock Purchase Agreement with the majority shareholder, resulting in a change of control of the Issuer.
We are a development stage company and
have not yet opened for business or generated any revenues. Our limited start-up operations have consisted of the formation of
our business plan and identification of our target market. We will require the funds from this offering in order to fully implement
our business plan as discussed in the "Plan of Operation" section of this prospectus.
Our principal and executive offices are located at 1800 NE 114
th
Street, Suite 609, Miami, Florida 33181 – 3414 with telephone number of (855) 229-9979. Our registered statutory office is
located at 9120 Double Diamond Parkway, Reno, Nevada 89521. Our fiscal year-end is May 31.
THE OFFERING
Following is a brief summary of this offering.
Please see the Plan of Distribution section for a more detailed description of the terms of the offer.
Securities Being Offered:
50,000,000 shares of common stock, par value $.001, at a price of $.25 per share.
Offering Price Per Share:
$.25 for the 50,000,000 common shares.
Offering Period:
The shares are being offered for a period not to exceed 180 days. In the event we do not sell all of the shares before the expiration date of the offering, all funds raised will be promptly returned to the investors, without interest or deduction.
Net Proceeds to Our Company:
$12,500,000 maximum and $6,250,000 minimum.
Use of Proceeds:
See Use of Proceeds
Number of Common Shares Outstanding Before the Offering:
102,238,200
Number of Common Shares Outstanding After the Offering:
152,238,200
5
RISK FACTORS
Investment in the securities offered hereby
involves certain risks and is suitable only for investors of substantial financial means. Prospective investors should carefully
consider the following risk factors in addition to the other information contained in this prospectus, before making an investment
decision concerning the common stock.
RISKS ASSOCIATED WITH OUR COMPANY
Lack of Profitable Operating History
The Company does not have a history of
profitable operation. There is no assurance that the Company will ever be profitable. The Company's ability to achieve profitability
will depend upon a number of factors, including, but not limited to, whether the Company:
• has funds available for working
capital, project development and sales and marketing efforts;
• has funds for the continuous
upgrading of its production operations and facilities;
• achieves the projected sales
revenues;
• controls the Company's
operating expenses;
• continues to attract new business;
• withstands competition in the Company's
marketplace.
Competition
The Company's competitors are
rapidly changing and may be well capitalized and financially stronger than Zyrox Mining International, Inc.'s and
competitors could reproduce the Company's business model without significant barriers to entry.
The Company's activities may require
additional financing, which may not be obtainable.
The Company had limited cash deposits.
Based on the Company's expectations as to future performance, the Company considers these resources and existing and anticipated
credit facilities, to be adequate to meet the Company's anticipated cash and working capital needs at least through December
31, 2012. The Company, however, expects to be able to raise capital to fund the Company's operations, current and future
acquisitions and investment in new program development. The Company may also need to raise additional capital to fund expansion
of the Company's business by way of one or more strategic acquisitions. Unless the Company's results improve significantly,
it is doubtful that the Company will be able to obtain additional capital for any purpose if and when the Company needs it.
The Company's Common Stock may
be thinly traded, and the public market may provide little or no liquidity for holders of the Company's Common Stock.
Purchasers of shares of the Company's
Common Stock may find it difficult to resell their shares at prices quoted in the market or at all. There is currently a limited
volume of trading in the Company's Common Stock, and on many days there has been no trading activity at all. Due to the historically
low trading price of the Company's Common Stock, many brokerage firms may be unwilling to effect transactions in the Company's
Common Stock, particularly because low-priced securities are subject to an SEC rule that imposes additional sales practice requirements
on broker-dealers who sell low-priced securities (generally those below $5.00 per share). The Company cannot predict when or whether
investor interest in the Company's Common Stock might lead to an increase in its market price or the development of a more
active trading market or how liquid that market might become.
The Company depends heavily on the Company's
senior management who may be difficult to replace.
The Company believes that the Company's
future success depends to a significant degree on the skills, experience and efforts of its Chairman, CEO and other key executives.
Any of these executives would be difficult to replace. While all of them have incentives to remain with the Company, they are not
bound by employment contracts, and there is no assurance that either of them will not elect to terminate their services to us at
any time.
6
Increasing the Company's business
depends on the Company's ability to increase demand for the Company's products and services.
While the Company believes that there is
a market for its planned increase in the Company's products and services, there is no guarantee that the Company will be
successful in its choice of product or technology or that consumer demand will increase as the Company anticipates.
The Company may be exposed to significant
costs of defense and damages in litigation stemming from current unresolved legal proceedings undertaken in the future by and against
the Company.
The Company could be subject of legal proceedings
against the Company that could give rise to significant exposure in costs and damages.
The Company's ability to operate
and compete effectively requires that the Company hires and retain skilled marketing and technical personnel, who have been in
short supply from time to time and may be unavailable to us when the Company needs them.
The Company's business requires us
to be able to continuously attract, train, motivate and retain highly skilled employees, particularly marketing and other senior
management personnel. The Company's failure to attract and retain the highly trained personnel who are integral to the Company's
sales, development and distribution processes may limit the rate at which the Company can generate sales. The Company's inability
to attract and retain the individuals the Company need could adversely impact the Company's business and the Company's
ability to achieve profitability.
The Company may suffer from a business
interruption and continuity of its on-going operations might be affected.
The Company's ability to implement
its business plans may be adversely affected by any business interruption that will affect the continuity of its operations. While
the Company may take reasonable steps to protect itself, there could be interruptions from computer viruses, server attacks, network
or production failures and other potential interruptions that would be beyond the Company's reasonable control. There can
be no assurance that the Company's efforts will prevent all such interruptions. Any of the foregoing events may result in
an interruption of services and a breach of the Company's obligations to its clients and customers or otherwise have a material
adverse effect on the business of the Company.
Macro-economic factors may impede business,
access to finance or may increase the cost of finance or other operational costs of the Company.
Changes in the United States and global
financial and equity markets, including market disruptions or interest rate fluctuations, inflation changes, may make it more
difficult for the Company to obtain financing for its operations or investments or increase the cost of obtaining financing and
event in the Company being delayed in attaining its projections. Borrowing costs can be affected by short and long term debt ratings
assigned by independent ratings agencies which are based, in significant part, on the Company's performance as measured
by credit metrics such as interest coverage and leverage ratios. Decrease in these ratios or debt ratings would increase the Company's
cost of borrowings and make it more difficult to obtain financing.
The Company is making the offering on
a best efforts basis and there is no assurance that the offering will be sold.
There is no assurance that the Company's
offering will be sold, in whole or even in part. The proposed use of net proceeds assumes a sale of the full amount of the offering.
The Board of the Company has full discretion
to re-allocate the Proceeds.
The Company intends to use the net proceeds
from this offering for the purposes and in the amounts described 'USE OF PROCEEDS'. The Company's estimates of
its allocation of the net proceeds of the offering are based upon the current state of its business operations, its current plans
and current economic and industry conditions. These estimates are subject to change based on material factors such as delays in
project development, unanticipated or changes in the level of competition, adverse market trends and new business opportunities.
Thus the Company will have broad discretion to make material changes in the allocation of the proceeds.
There is a limitation on the officers
and directors liability.
The articles of the Company limit the personal
liability of directors and officers for breach of fiduciary duty and the Company provides an indemnity for expenses and liabilities
to any person who is threatened or made a party to any legal action by reason of the fact that the person is or was a director
or officer of the Company unless the action is proven that the person was liable to be negligent or misconduct in the performance
of their duty to the Company.
7
The loss of our key officers or directors
may raise substantial doubt as to the continued viability of the Company
.
Zyrox Mining International, Inc.'s
operations depend on the efforts of key officers and directors and the loss of their services may irreparably harm the Company
in such a manner that it may not be able to overcome any such loss in management.
Purchasers in this offering will have
limited control over decision making because the new group of shareholders will control only 33% of the currently issued and outstanding
common stock.
Such limited control may also make it difficult
for stockholders to receive a premium for their shares of the Company in the event the Company enters into transactions, which
require stockholder approval. This limited concentration of ownership limits the power to exercise control by the minority shareholders.
Investors may lose their entire investment
if Zyrox Mining International, Inc. fails to implement its business plan
.
Zyrox Mining International, Inc. expects
to face substantial risks, uncertainties, expenses, and difficulties because it is a development-stage company.
Zyrox
Mining International, Inc. (formerly Diversified Energy & Fuel, Inc.)
was formed in Nevada on June 3, 2009. Zyrox Mining
International, Inc. has no demonstrable operations record of substance upon which you can evaluate the Company's business
and prospects. Zyrox Mining International, Inc. prospects must be considered in light of the risks, uncertainties, expenses and
difficulties frequently encountered by companies in their early stages of development. Zyrox Mining International, Inc. cannot
guarantee that it will be successful in accomplishing its objectives.
As of the date of this prospectus, Zyrox
Mining International, Inc. has had only limited start-up operations and has generated very small revenues. In addition, Zyrox Mining International, Inc.'s lack of operating capital could negatively affect
the value of its common shares and could result in the loss of your entire investment.
Because of our new business model, we
have not proven our ability to generate profit, and any investment in Zyrox Mining International, Inc. is risky
.
We have very little meaningful operating
history so it will be difficult for you to evaluate an investment in our stock. We have not sold any of our products to date. We
cannot assure that we will ever be profitable. Since we have not proven the essential elements of profitable operations, you will
be furnishing venture capital to us and will bear the risk of complete loss of your investment in the event we are not successful.
We may be unsuccessful in monitoring new trends.
Our net revenue might decrease with time.
Consequently, our future success depends on our ability to identify and monitor trends and the development of new markets. To establish
market acceptance of a new technologies, we will dedicate significant resources to research and development, production and sales
and marketing. We will incur significant costs in developing, commissioning and selling new products, which often significantly
precedes meaningful revenues from its sale. Consequently, new business can require significant time and investment to achieve profitability.
Prospective investors should note, however, that there can be no assurance that our efforts to introduce new products or other
services will be successful or profitable.
We may face distribution and product risks.
Our future financial results depend in
large part on our ability to develop relationships with our customers. Any disruption in our relationships with our future customers
could adversely affect our financial performance.
We may face claims of infringement on intellectual property
rights.
Other parties may assert claims of ownership
or infringement or assert a right to payment with respect to the exploitation of certain intellectual properties against us. In
many cases, the rights owned or being acquired by us are limited in scope, do not extend to exploitation in all present or future
uses or in perpetuity. We cannot assure you that we will prevail in any of these claims. In addition, our ability to demonstrate,
maintain or enforce these rights may be difficult. The inability to demonstrate or difficulty in demonstrating our ownership or
license rights in these technologies may adversely affect our ability to generate revenue from or use of these intellectual property
rights.
8
If our operating costs exceed our estimates,
it may impact our ability to continue operations
.
We believe we have accurately estimated
our needs for the next twelve months. It is possible that we may need to purchase additional equipment, hire additional personnel,
and further develop new business ventures, or that our operating costs will be higher than estimated. If this happens, it may impact
our ability to generate revenue and we would need to seek additional funding. We intend to establish our initial client base via
existing relationships that our directors and officers have established in past business relationships. Should these relationships
not generate the anticipated volume of business, any unanticipated costs would diminish our working capital.
Competitors with more resources may
force us out of business
.
Competition in our sectors of business
come from a variety of factors, including quality, timely commissioning of new projects, product positioning, pricing and brand
name recognition. The principal competitors for our business may do this better than we can. Each of these competitors has substantially
greater financial resources than we do. New technologies may also present substantial competition. We may be unsuccessful in competing
with these competitors, which may materially harm our business.
Zyrox Mining International, Inc. may
not be able to attain profitability without additional funding, which may be unavailable
.
Zyrox Mining International, Inc. has limited
capital resources. Unless Zyrox Mining International, Inc. begins to generate sufficient revenues to finance operations as a going
concern, Zyrox Mining International, Inc. may experience liquidity and solvency problems. Such liquidity and solvency problems
may force Zyrox Mining International, Inc. to cease operations if additional financing is not available.
RISKS ASSOCIATED WITH THIS OFFERING
You may not be able to sell your shares
in Zyrox Mining International, Inc. because there is a limited public market for Zyrox Mining International, Inc. stock
.
There is a limited public market for Zyrox
Mining International, Inc. common stock. Therefore, the current and potential market for Zyrox Mining International, Inc. common
stock is limited. Zyrox Mining International, Inc. cannot guarantee that a meaningful trading market will develop.
The trading price of Zyrox Mining International,
Inc. common stock could be subject to wide fluctuations in response to various events or factors, many of which are or will be
beyond Zyrox Mining International, Inc. control. In addition, the stock market may experience extreme price and volume fluctuations,
which, without a direct relationship to the operating performance, may affect the market price of Zyrox Mining International, Inc.
stock.
Liquidity on the OTC Bulletin Board
is limited, and the Company may be unable to obtain listing of the Company's Common Stock on a more liquid market.
The Company's Common Stock is currently
quoted on the OTC:PK Board, which provides significantly less liquidity than a securities exchange (such as the American or New
York Stock Exchange) or an automated quotation system (such as the Nasdaq National or SmallCap Market). There is uncertainty that
any of the Company's securities will ever be accepted for listing on an automated quotation system or securities exchange.
Investors may have difficulty liquidating
their investment because Zyrox Mining International, Inc.'s stock will be subject to Penny Stock Regulation
.
The SEC has adopted rules that regulate
broker/dealer practices in connection with transactions in penny stocks. The rules, in part, require broker/dealers to provide
penny stock investors with increased risk disclosure documents and make a special written determination that a penny stock is a
suitable investment for the purchaser and receive the purchaser's written agreement to the transaction. These heightened
disclosure requirements may have the effect of reducing the number of broker/dealers willing to make a market in Zyrox Mining International,
Inc. shares, thereby reducing the level of trading activity in any secondary market that may develop for Zyrox Mining International,
Inc. shares. Consequently, customers in Zyrox Mining International, Inc. securities may find it difficult to sell their securities,
if at all.
9
Investors in this offering will bear
a substantial risk of loss due to immediate increase and subsequent dilution.
The principal shareholders of Zyrox Mining
International, Inc. own 27% of the outstanding shares of Zyrox Mining International, Inc. common stock. Further issues of stock
will mean that shareholders may experience substantial "dilution."  Therefore, the investors in this offering
will bear a substantial portion of the risk of loss. Please refer to the section titled "Dilution" herein.
USE OF PROCEEDS
When all of the shares are sold the gross proceeds from this
offering will be $12,500,000.
Our management will have broad discretion to allocate the net proceeds
from this offering. Actual expenditures may vary substantially from our estimates. We may find it necessary or advisable to use
portions of the proceeds for other purposes.
We expect to disburse the proceeds from this offering in the priority set forth
below, within the first 12 months after successful completion of this offering:
Proceeds to Us:
$
12,500,000
Property & Equipment
$
7,150,000
Purchase of Zyrox Mining Co. Ltd.
$
1,250,000
Retirement of Liabilities
$
500,000
Working Capital
$
3,600,000
Total Net Proceeds
$
12,500,000
In the event we are only able to raise the minimum offering
proceeds of $6,250,000.00 then the Issuer shall use the funds in the following manner: $2,325,000 for property and equipment, $1,250,000
for purchase of Zyrox Mining Co., Ltd., $500,000 for retirement of liabilities, and $2,175,000 for working capital.
DETERMINATION OF OFFERING PRICE
The offering price of the 50,000,000 shares
of common stock offered for sale at the value of $.25 per share bears no relationship to any objective criterion of value and bears
no relationship to Zyrox Mining's assets, book value, historical earnings, or net worth. In determining the offering price,
management considered such factors as the prospects, if any, for similar companies, anticipated results of operations, present
financial resources and the likelihood of acceptance of this offering. Accordingly, the offering price should not be considered
an indication of the actual value of our securities.
DILUTION OF THE PRICE YOU PAY FOR YOUR SHARES
"Dilution" represents the
difference between the offering price of the shares of common stock and the net book value per share of common stock
immediately after completion of the offering. "Net Tangible Book Value" is the amount that results from
subtracting total liabilities and intangible assets from total assets. In this offering, the level is increased
as a result of the relatively high book value of Zyrox Mining International, Inc.'s issued and outstanding stock
.
With
102,238,200 common shares issued, the net book value of Zyrox Mining International, Inc. before the offering is $ .94.
Assuming all 50,000,000 shares offered are sold, and in effect Zyrox Mining International, Inc. receives the maximum
estimated proceeds of this offering from shareholders, Zyrox Mining International, Inc. net book value will be approximately
$ .63 per share. Therefore, any investor will incur an immediate and substantial increase of approximately $ .39 per share,
while the Zyrox Mining International, Inc.'s present stockholders will receive a decrease of $ .30 per share in the net
tangible book value of the shares that they hold. This will result in a 256% increase for purchasers of stock in this
offering.
The
following table illustrates the dilution to the purchaser of the common stock in this offering. This table represents a comparison
of the various prices paid by the individual who purchased shares in Zyrox Mining International, Inc. previously:
10
Book Value Per Share Before the Offering
$
.94
Book Value Per Share After the Offering
$
.64
Net Decrease to Original Shareholders
$
.30
Increase in Investment to New Shareholders
$
.39
Increase to New Shareholders (%)
256
%
PLAN OF DISTRIBUTION
OFFERING WILL BE SOLD BY OUR OFFICER
AND DIRECTOR
This is a self-underwritten offering. This
Prospectus is part of a Prospectus that permits our officer and director to sell Shares directly to the public, with no commission
or other remuneration payable for any Shares that are sold. There are no plans or arrangements to enter into any contracts or agreements
to sell the Shares with a broker or dealer. Mr. Carl H. Kruse, our President and director, will sell the Shares and intends to
offer them to friends, family members and business acquaintances. In offering the securities on our behalf, they will rely on the
safe harbor from broker dealer registration set out in Rule 3a4-1 under the Securities Exchange Act of 1934.
They will register as a broker-dealer pursuant
to Section 15 of the Securities Exchange Act of 1934, in reliance upon Rule 3a4-1, which sets forth those conditions under which
a person associated with an Issuer may participate in the offering of the Issuer's securities and not be deemed to be a broker-dealer.
a.
Our officers and directors are not subject to a statutory disqualification, as that term is defined in Section 3(a)(39) of the Act, at the time of their participation; and
b.
Our officers and directors will not be compensated in connection with their participation by the payment of commissions or other remuneration based either directly or indirectly on transactions in securities; and
c.
Our officers and directors are not, nor will they be at the time of their participation in the offering, an associated person of a broker-dealer; and
d.
Our officers and directors meet the conditions of paragraph (a)(4)(ii) of Rule 3a4-1 of the Exchange Act, in that they (A) primarily perform, or intend primarily to perform at the end of the offering, substantial duties for or on behalf of our company, other than in connection with transactions in securities; and (B) are not a broker or dealer, or been associated person of a broker or dealer, within  the preceding twelve months; and (C) has not participated in selling and offering securities for any Issuer more than once every twelve months other than in reliance on Paragraphs (a)(4)(i) and (a)(4)(iii).
Our officers, directors, control persons and affiliates of
same do not intend to purchase any shares in this offering.
TERMS OF THE OFFERING
The Registrant intends to register 50,000,000
common shares at the fixed price of $.25 per share for sale to the public
and if
all 50,000,000 common shares are sold then the Registrant shall receive $12,500,000.00 from the offering.
11
DEPOSIT OF OFFERING PROCEEDS
This is a "best effort" offering and, as such, we
will not be able to spend any of the proceeds unless and until the minimum total of 25,000,000 common shares are sold and all proceeds
from such sale are received. We intend to hold all monies collected for subscriptions in a separate escrowed bank account with
JPMorgan Chase Bank, NA located at 10706 Biscayne Blvd., Miami, FL 3316, until the total amount of $6,250,000.00, which is the
minimum, has been received. At that time, the funds will be transferred to our business account for use in the implementation of
our business plans. In the event the offering is not sold out prior to the Expiration Date, all monies will be returned to investors,
without interest or deduction.
PROCEDURES FOR AND REQUIREMENTS FOR
SUBSCRIBING
If you decide to subscribe for any shares
in this offering, you will be required to execute a Subscription Agreement and tender it, together with a check or certified funds
to us. Subscriptions, once received by the Company, are irrevocable unless the total minimum offering of 25,000,000 common shares
are not sold. All checks for subscriptions should be made payable to "Zyrox Mining International, Inc."
DESCRIPTION OF SECURITIES
COMMON STOCK
Our authorized capital stock consists
of
3,000,000,000 shares
of common stock, par value $.001 per share of which there are currently 102,238,200 issued and outstanding.
The holders of our common stock (i) have equal ratable rights to dividends from funds legally available therefore, when, as and
if declared by our Board of Directors; (ii) are entitled to share in all of our assets available for distribution to holders of
common stock upon liquidation, dissolution or winding up of our affairs; (iii) do not have preemptive, subscription or conversion
rights and there are no redemption or sinking fund provisions or rights; and (iv) are entitled to one non-cumulative vote per share
on all matters on which stockholders may vote.
There are currently no outstanding option
or warrant awards, and the Company has not implemented any equity compensation plan.
NON-CUMULATIVE VOTING
Holders of shares of our common stock do
not have cumulative voting rights, which means that the holders of more than 50% of the outstanding shares, voting for the election
of directors, can elect all of the directors to be elected, if they so choose, and, in such event, the holders of the remaining
shares will not be able to elect any of our directors.
CASH DIVIDENDS
As of the date of this prospectus, we have
not paid any cash dividends to stockholders. The declaration of any future cash dividend will be at the discretion of our Board
of Directors and will depend on our earnings, if any, our capital requirements and financial position, our general economic conditions,
and other pertinent conditions. It is our present intention not to pay any cash dividends in the foreseeable future, but rather
to reinvest earnings, if any, in our business operations.
PREFERRED STOCK
The Company's authorized capital
stock of Preferred Shares consists of 300,000,000 shares divided into three classes of 100,000,000 Preferred Shares each, designated
as Class "A", Class "B" and Class "C." All shares of Preferred Stock are at par value of $.001
per share.
There are currently 855,000 Preferred "A"
shares outstanding. Preferred "A" shares are super-voting shares, are non-dilutive and they convert only in exchange
for the partial or full retirement of debt held by Management, employees or consultants, or as directed by a majority vote of the
Board of Directors. The number of Shares of Preferred Stock to be issued to each qualified person (member of Management, employee
or consultant) holding a Note shall be determined by the following formula:
Each dollar
of debt represents one preferred share.
12
If at least one share of Series A Preferred
Stock is issued and outstanding, then the total aggregate issued shares of Series A Preferred Stock at any given time, regardless
of their number, shall have voting rights equal to four times the sum of the total number of shares of Common Stock which are issued
and outstanding at the time of voting.
INTEREST OF NAMED EXPERTS AND COUNSEL
None of the below described experts or
counsel have been hired on a contingent basis and none of them will receive a direct or indirect interest in the Company.
Our audited financial statements for the
period from inception to May 31, 2012 included in this prospectus have been audited by CPA Services Corp.com,
8501
Pines Blvd - #207, Pembroke Pines, FL 33029
and signed by Enrique Nowogrodzki, a Certified Public Accountant admitted to
the PCAOB
. We include the financial statemen
ts in reliance on their report, given upon their
authority as experts in accounting and auditing.
The Law Offices of Joseph L. Pittera, 2214
Torrance Boulevard, Suite 101, Torrance, California 90501, has passed upon the validity of the shares being offered and certain
other legal matters and is representing us in connection with this offering.
DESCRIPTION OF OUR BUSINESS
GENERAL INFORMATION
We were incorporated on June 3, 2009, under
the laws of the State of Nevada.
As of the date hereof, we have had only
limited start-up operations and have not generated any significant revenues.
Our executive offices are located at 1800
NE 114
th
Street, Suite 609, Miami, Florida 33181 – 3414 with telephone number of (855) 229-9979.
Our fiscal year-end is May 31.
INDUSTRY BACKGROUND
Zyrox Mining International,
Inc. (formerly Diversified Energy & Fuel, Inc. until August 15, 2012)
was incorporated in the State of Nevada on June
3, 2009. Zyrox Mining International, Inc. began formal operations on June 3, 2009, with the principle purpose of developing, marketing
and selling software products through the Internet, and to provide web based services for individuals and small business. During
2010, this business was discontinued and management focused on developing a biodegradable plastic opportunity.
On November 8, 2010, the Company entered into an agreement to
acquire 100% of the Membership Interests of WSVPA Bio Products Incorporated, a Nevada LLC in consideration for 102,238,200 shares
of common stock. After completion of their due diligence, WSPVA formally closed on the transaction on May 12, 2012. The Company
subsequently received 500,000,000 Class "A" membership units and 1,000,000 Class "B" membership units representing
100% of the membership interest of WSPVA (dissolvingplastic.com) in return for 102,238,200 common shares of the Company and WSPVA
is now a wholly owned subsidiary of the Company.
PRINCIPAL PRODUCTS AND SERVICES AND THEIR MARKETS
Global plastics consumption will be over
500 billion pounds this year, and is growing by over 15 billion pounds per year.
The USA alone
uses 380 billion plastic bags per year, over 1 billion per day, using the equivalent of 1.3 billion gallons of oil annually to
produce.
·
An estimated 500 billion to 1 trillion plastic bags will be consumed worldwide this year. That
comes out to over one million bags per minute.
·
Americans will use 125 billion plastic (water & soda) bottles this year, using 12.5 billion
pounds of plastic.
·
3 billion pounds of stretch wrap gets used in the US per year, using the equivalent of over 240
million gallons of oil annually to produce.
13
The combined value of the European and
US plastic packaging market is $1.04 trillion. One pound of plastic is being sold for an average of US$2 to the end user.
You get the picture. Our consumption of
plastic products is growing and growing—and the market is strong.
BUT … Plastic has a dark side.
·
Plastic can take up to 1,000 years to biodegrade. It furthermore can leak or break down into harmful
chemicals when reused or recycled, and produces large amounts of greenhouse and other gases upon disposal.
It is not a friend
to the environment.
·
86% of plastic water bottles used in the U.S. (100 billion) end up in landfills.
·
The
                                                                                                       bottled water we purchase
                                                                                                       is often in #1 PET or PET
                                                                                                       bottles (polyethylene terephthalate),
                                                                                                       which may leach DEHA, a
                                                                                                       known carcinogen, if used
                                                                                                       more than once.
·
Californians
                                                                                                       alone throw away 294 million
                                                                                                       pounds of plastic bags
                                                                                                       every year, enough waste
                                                                                                       to circle the planet over
                                                                                                       250 times.
·
Over
                                                                                                       246 million lbs. of debris
                                                                                                       enter our oceans per day,
                                                                                                       making over 90 billion
                                                                                                       pounds per year. Globally,
                                                                                                       the proportion of plastic
                                                                                                       among marine debris worldwide
                                                                                                       ranges from 60 to 80%,
                                                                                                       although it has reached
                                                                                                       over 90–95% in some
                                                                                                       areas. Around 60% of this
                                                                                                       debris is plastic, making
                                                                                                       a full 8% of the world's
                                                                                                       plastics end up in the
                                                                                                       oceans!
Bio-Plastics are already on the Increase
Many bio-plastics are available on the
market today. Bio-based and biodegradable plastics are a very promising innovation for both industry and the economy. Compost-ability
is the main material property, which differentiates bio-plastics products from conventional plastic material. This enables the
organic recycling of bio-plastics products. The other differentiating feature is that the components are derived entirely from
renewable raw materials.
"Bio-plastics are biodegradable
and can be made from the triglycerides found in oilseeds such as canola, starches, such as those found in corn, sugar beets and
potatoes, or on using proteins from soybeans. Companies like Telles are using corn instead of petroleum to engineer the polymers
necessary to make plastic. The corn is introduced to microorganisms in a fermentation process that yields a polymer. The polymer
is then made into pellets that are used to make different grades of paper coatings and thermoformed products."
These alternatives are advantageous to
our environment, because they require less energy to process than conventional plastics; they release
CO
2
and
water after degradation, recycle carbon in our environment thereby reducing
CO
2
production and stabilizing the
environment and produce more fertile soil after degradation rich in nutrients and good for further farming.
The Company's Unique Niche:
The Company's Bio-Plastic is Unique both
in Composition and Process.
The Solution is in the Patented Technology, not just the PVA Film
The process,
technique, and equipment developed around the rotary-drum, forming dual-directional stretching water-soluble PVA Film, has successfully
solved many technical puzzles arising out of the wet-producing process of fast film-forming, film-peeling, and continuous high
efficient production.
This results
in a short process flow, relatively small equipment cost, small floor space, low energy consumption, little noise, and very-clean
production surroundings.
The rotary
drum surface involved in this invention is a special metal material. It requires the patented machine's feeding system to
uniformly spray the PVA solution onto the surface of the drum, which is continuously heated and which smoothly rotates to form
the PVA Film.
14
The water-soluble
PVA Film produced by the process is characterized by sound performance, high strength and good transparency.
The pursuit of innovation demands that
the Company continually expand its understanding of the chemistry and physics of film, extrusion and clean room techniques, and
work closely with the Company's suppliers and customers.
What's unique about the Company's
PVA Film is:
·
its price point is competitive with plastics currently on the market (depending upon the price
of oil or corn);
·
it biodegrades quickly in both compost and landfills without needing any industrial additives (a
large variety of naturally occurring microorganisms have been proven to degrade PVA);
·
it is an excellent barrier to odors, bacteria, carbon dioxide, hydrogen and oxygen, and is solvent
resistant;
·
it is non-toxic. While the film is not approved for food contact applications yet, independent
studies have shown it to be non-toxic;
·
it is stable even under extreme heat and other conditions; and
·
it is water-soluble and will dissolve in certain pre-configured temperatures of water (cold, warm
and hot water soluble grades are available).
Consumers
will enjoy having the option of either disposing of our plastic with their trash, knowing it will quickly biodegrade in a landfill,
or simply dissolve our plastic down their kitchen sinks.
The
Company has few PVA Packaging Material direct competitors—even with so many biodegradable plastics available today.
The Company's Product (PVA) versus PET & PLA
The
Company's plastic is a polyvinyl alcohol ("PVA") based plastic, which is non-toxic, 100% biodegradable and water-soluble.
It doesn't discolor when exposed to sunlight, nor degrade with heat. PVA has been evaluated by the FDA and is "Generally
Considered as Safe," even for human consumption (as it is often used as a coating for medication, fruit and vegetables).
PVA itself is not a new invention, but
until now, it could only be produced in a hand-made manual way; no machine could efficiently mass-produce it.
What makes the Company's PVA Packaging
Material unique is that the Company's scientists have discovered a way to produce this plastic for a variety of applications
at relatively low costs by using the Company's proprietary methods and patented machine(s).
Here is how it matches up against the competition:
The Company's PVA film is superior and unique amongst
all biodegradable products on the market today. MonoSol in the U.S. (see:
http://www.monosol.com/
) is a competitor. The
main competitor in the field is Aicello of Japan (see:
http://www.solublon.com/
).
PVA
water-soluble film is used in diverse applications such as packaging, mold release, transfer printing, embroidery, medical and
textiles.
The industry is primarily focused on film/wrap/bags applications. The fastest growing segment is household
laundry and dishwasher detergent packages, with the detergent being in a single serving plastic bag consisting of a PVA film that
dissolves during the cleansing process. Laundry bags (medical facilities) are also an established market. In addition, polarizing
PVA film for LCD (Liquid Crystal Displays) is a growing market (high-end, mostly out of Japan).
15
1.
Price
. PET uses petroleum and its price fluctuates with world oil prices. PLA is more expensive
than PET, uses petroleum in its production process, and its price fluctuates depending upon the price of oil, and/or corn. Unlike
PET and PLA, the Company's product does not contain oil or corn, and it is able to offer stable, long-term and competitive
pricing to the customers we plan to divert from PET and PLA.
2.
Biodegradability & Convenience of Disposal
. Unlike PET and PLA, the Company's
product is 100% biodegradable in both a landfill and in compost. This means the consumer can dispose of the Company's product
directly in their trash. It is also water soluble, which allows consumers to simply dissolve the plastic under certain water temperatures
in their sink. Since the recycling process uses water to cleanse recycled plastic, the Company's plastic should simply dissolve
during the recycling process and will thus not "contaminate" the recycle stream like PLA is accused of doing. Taken
together, the consumer has the options of: (i) disposing the product in the trash; (ii) dissolving it in their sink; and/or (iii)
depositing it in the recycle bin.
3.
Quality of Our Product
. PET is a very high quality, durable plastic. PLA can be susceptible
to instability in heat, sunlight and other factors, which might affect its marketability. The Company's product, by comparison,
is very stable under heat just like PET. In fact, it has been tested by a plastic bag producer at temperatures up to 380°F,
and our product didn't change. By contrast, PET burnt to a crisp. Despite the product's strength and durability, it
will quickly dissolve in certain temperatures of water (we can design the temperature parameters depending upon the application)
and will degrade quickly when exposed to bacteria in a landfill or soil. In addition, uncertified tests have been made on "freshness"
using the Company's PVA Film and it was found that a ripe piece of fruit, when sealed in PVA Film, stays fresh for a full
30 days.
4.
Accessibility and Production of the Raw Material for the Production of PVA Film.
Though
any bio-substance that can ferment into an alcohol can be used to make the PVA Film from the patented PVA Film Machine, after extensive
testing of the properties of various plants, vegetables and fruits, it has been concluded that (i) the biodegradable qualities
are not equal amongst all bio-substances; (ii) some bio-substances leave varying degrees of residue upon degradation; (iii) the
cost varies; and (iv) so does the time taken to ferment and get the raw material ready for the PVA Film making process.
Therefore, the scientists have
chosen the best possible raw materials that produce the greatest amount of benefits and cost savings.
Since 500 Billion pounds of plastic will
be produced and sold this year, the markets and applications are endless. Since the product is 100% "Green" it will
also be in immediate demand, especially since there are so few real competitors.
DISTRIBUTION METHODS
Preliminary market development work has
been done by WSPVA as follows:
WSPVA believes it has three markets for
its PVA Film (stemming from formal and informal discussions with representatives of companies who are interested in our product(s)
once we are in full production, and based upon certain assumptions and conditions):
Pharmaceutical Industry (gowns, gloves,
etc.):
A packaging factory with capacity to handle 30,000 metric tons per month, totaling 792,000,000 lbs. of plastics per
year. They are limited by their production capacity and not by what they can sell. They expressed interest in possibly paying $4.50
per lb. for enough PVA Film to replace their present plastics.
The Fruit and Vegetable Packaging Industry
in North America, USA
: This industry has over 450 different commodities sold at the retail level. Much of this industry requires
plastic "clam shells" to package and market their products. Using just one of the 450 commodities as an example, the
State of California alone will require 1,440,000,000 clamshells for strawberries in 2010. In just the strawberry industry, this
represents approximately $175,000,000 annually worth of clamshell needs for strawberries alone.
A California Company has given us a conditional
order for over 500,000,000 clamshells. This alone represents a potential $60,000,000 in revenues.
Stephen Gould Corporation:
is the
largest privately owned packaging sales organization in the United States. It transacts over $500M in sales annually. Stephen Gould
services over 1,000 current customers like Disney, Verizon Wireless, RIM/Blackberry, and Golden State Foods (services fast-food
enterprises such as McDonalds). Stephen Gould has tested our PVA Film and believes that it is "… game changing on
a global level." They are interested in exclusive rights to use our PVA Film for several of their customers, including possibly
Golden State Foods – servicing McDonalds and others in the fast food industry. We wish to establish a diverse portfolio of
customers, but the plastic bag industry has lower margins than the above two options. Nevertheless, when we have developed enough
PVA Film Machines, this is a very attractive contract to fulfill.
16
Nobility Fruit Co. has given us an initial
order for 1,000,000,000 clamshells, to be expanded as our production can handle the order. This totals $118,000,000 annually, with
a projected $95M in Net Profits, where only fixed annual expenses are computed. That's a projected $475M Net Profit for a
5-year contract. It takes 63 PVA Film Machines to fill this order. If we expand in order to fill their entire 3 billion clamshell
needs, we would need 189 machines. This order represents a $2.56 per lbs and $6.24 per lbs. price for our plastic, as compared
to the $4.50 per lbs price for the pharmaceutical application.
COMPETITION
Presently, the packaging and consumer products
plastic industry utilizes primarily two types of plastic: Polyethylene Terephthalate ("PET") and Poly Lactic Acid ("PLA").
PET
(Polyethylene Terephthalate)
PET dominates the consumer plastic industry.
It is used in plastic bottles, bags, clamshells and most other packaging and consumer product applications. Because PET is petroleum
based, its price fluctuates with the price of oil. It is not biodegradable, but it is commonly recycled. It takes between 500-1,000
years to biodegrade.
Though a very stable product, it cannot
be produced from renewable energy sources and it is very destructive to the environment—both land and water.
PLA
(Poly Lactic Acid)
PLA is a relatively new entry into the
plastic packaging and consumer goods market. PLA is typically a corn oil based plastic when produced in the U.S., and a sugar cane
based plastic outside of the U.S.
In the US, there is one primary producer
of PLA products, and that is NatureWorks LLC. PLA is generally more expensive than PET, but there is a demand for it nonetheless
because it is considered "green" compared to PET.
However, by NatureWorks LLC's own
admission, their product is not biodegradable. It is "compost-able," but only in an industrial compost facility. Moreover,
it cannot degrade in landfills, will not degrade in the ocean or soil, and may contaminate the recycling industry.
Despite the relatively high prices and
all the aforementioned problems with PLA, many major retailers (like Walmart and Trader Joes and others) are demanding PLA products
to promote a "green" ideology. We intend to quickly fill that demand with our product.
We include under the PLA category, other
plastics considered Biodegradable and which come from renewable vegetation-based resources because they all share common drawbacks.
PLA has other drawbacks.
1.
It is more expensive to produce.
2.
It is unstable in heat.
3.
It has a tendency to discolor under direct sunlight.
4.
Consumers don't know what to do with PLA products, as they require industrial composting,
and consumers often dispose of PLA products in either the trash or the recycle stream.
We include Cereplast, Inc. (Nasdaq:CERP)
as part of the PLA category and they are a serious competitor in some important ways. We include certain details here so one can
immediately see the complexity of production of usable resin—whereas the Company's PVA Film is simply made from alcohol,
converted to a liquid which is fed into a PVA Machine, making rolls and rolls of plastic which is easily distributed and used
by all conventional machines.
17
Cereplast designs and manufactures proprietary
starch-based, plastics created from their proprietary bio-plastics technology, which incorporate PLA as part of the resin. These
bio-resins replace a significant portion of petroleum-based additives with bio-based material such as starches from tapioca, corn,
wheat and potatoes, resulting in sustainable plastics.
Since Cereplast is starch-based, rather
than petroleum-based, the cost is not subject to fluctuation based on the price of fossil fuels. The manufacturing process for
Cereplast resins takes place at a lower heat than that required for manufacturing with traditional plastics, further bringing down
manufacturing costs.
Resin manufacturing requires the Cereplast
production team to select the right biopolymer matrix made from renewable, cost-stable resources. These biopolymers include polylactic
acid (PLA) from NatureWorks LLC, soy proteins, PHA, PHBs, or starch from corn, wheat or potatoes.
The selected biopolymer is blended with
other biodegradable components to reinforce its molecular structure through a proprietary process developed by Cereplast. The blend
is then polymerized and treated with nano-composites for surface optimization and further reinforcement. The entire green composite
process is high-speed and low-cost. The final product is then packaged and shipped to converters, which are able to process the
resin using traditional equipment.
Cereplast products are certified biodegradable
by a number of independent agencies. The products are fully compost-able in
commercial facilities
within 60-180 days, leaving
no chemical residue. Cereplast products can be discarded with food waste – no separation required.
Cereplast Hybrid Resins® products are
bio-based, replacing 50% or more of the petroleum content in traditional plastic products with materials from renewable sources
such as starches from corn, tapioca, wheat and potatoes.
We could include a long list of semi-biodegradable
products, but all share similar properties that differentiate them from our product:
·
They remain unstable when produced by a machine or when they encounter heat or extreme conditions.
·
Many of these products must be produced by hand and don't presently have a machine-based
application.
·
Compost-ability is most often subject to some industrial process instead of being able to just
be placed in a hole in the ground and covered.
·
Price of production is still higher than our PVA Film
According to Doug Woodring, founder of the Ocean Recovery Alliance,
"Plastic and other waste in the ocean have caused a large impact on the environment and ecosystem, much of which is only
just becoming understood. It can kill marine life, may be entering our food chain, and can have a negative effect on people's
health and safety. Global consumption of plastic has outstripped our infrastructure in waste management. It is estimated that over
70% of the plastic and other waste in the ocean enters from land based sources, and this has spurred urgent attention on its environmental
impact."
There are growing indications that the cumulative effect of
plastic use as a common business component is having increasingly harmful environmental impacts. Recent studies include the following
data:
·
More than 7 million tons of garbage reaches the marine environment every year according to the UNEP.
·
Most plastic is not biodegradable, and the decomposition of many types of plastic can take hundreds of years.
SOURCES AND AVAILABILITY OF PRODUCTS
WSPVA believes it has three markets for
its PVA Film (stemming from formal and informal discussions with representatives of companies who are interested in our product(s)
once we are in full production, and based upon certain assumptions and conditions):
Pharmaceutical Industry (gowns, gloves,
etc.):
A packaging factory with capacity to handle 30,000 metric tons per month, totaling 792,000,000 lbs. of plastics per
year. They are limited by their production capacity and not by what they can sell. They expressed interest in possibly paying $4.50
per lb. for enough PVA Film to replace their present plastics.
18
The Fruit and Vegetable Packaging Industry
in North America, USA
: This industry has over 450 different commodities sold at the retail level. Much of this industry requires
plastic "clam shells" to package and market their products. Using just one of the 450 commodities as an example, the
State of California alone will require 1,440,000,000 clamshells for strawberries in 2010. In just the strawberry industry, this
represents approximately $175,000,000 annually worth of clamshell needs for strawberries alone.
A California Company has given us a conditional
order for over 500,000,000 clamshells. This alone represents a potential $60,000,000 in revenues.
Stephen Gould Corporation:
is the
largest privately owned packaging sales organization in the United States. It transacts over $500M in sales annually. Stephen Gould
services over 1,000 current customers like Disney, Verizon Wireless, RIM/Blackberry, and Golden State Foods (services fast-food
enterprises such as McDonalds). Stephen Gould has tested our PVA Film and believes that it is "… game changing on
a global level." They are interested in exclusive rights to use our PVA Film for several of their customers, including possibly
Golden State Foods – servicing McDonalds and others in the fast food industry. We wish to establish a diverse portfolio of
customers, but the plastic bag industry has lower margins than the above two options. Nevertheless, when we have developed enough
PVA Film Machines, this is a very attractive contract to fulfill.
Nobility Fruit Co. has given us an initial
order for 1,000,000,000 clamshells, to be expanded as our production can handle the order. This totals $118,000,000 annually, with
a projected $95M in Net Profits, where only fixed annual expenses are computed. That's a projected $475M Net Profit for a
5-year contract. It takes 63 PVA Film Machines to fill this order. If we expand in order to fill their entire 3 billion clamshell
needs, we would need 189 machines. This order represents a $2.56 per lbs and $6.24 per lbs. price for our plastic, as compared
to the $4.50 per lbs price for the pharmaceutical application.
DEPENDENCE ON ONE OR A FEW MAJOR CUSTOMERS
Zyrox Mining International, Inc. is not dependent on one or
a few major customers.
PATENTS, TRADEMARKS and LICENSES
Exclusive Technology License - Licensors have irrevocably
granted to the Company, to the exclusion of Licensors, their Affiliates, Related Entities, Assigns or any person or entity
anywhere in the world, an exclusive, non-cancelable license for the United States and Canada to import, purchase, promote,
market, distribute, sell, transfer, utilize and/or use, in any way the Company desires and at the Company's absolute and
exclusive discretion, the Products, End Products, Patent, PCX Patent, Invention Patent, Patent Rights and/or Intellectual
Property, along with any products, services, processes, designs, methods, materials, ingredients, improvements or inventions
utilized thereby or derived there from, in any way the Company likes; which license shall be irrevocable, non-cancelable,
exclusive, without restriction, and without royalty, and which also includes the right of the Company to sublicense however
and to whomever the Company wants ("Exclusive License"). The term of this Exclusive License and all rights related
thereto shall be: (i) the maximum term allowable in the P.R.C. and/or other applicable jurisdictions for a license against
the Patent and/or PCT Patent, including any extensions thereof; and (ii) in perpetuity with respect to all other aspects of
the Company's Exclusive License and exclusive rights granted in this Agreement (or some other shorter period if such shorter
period is required by law in a certain applicable jurisdiction, in which case the shorter period shall only apply in that
jurisdiction). Licensors (and/or their successors or assigns) shall file patent extensions related to the Patent, PCT Patent,
Invention Patent and/or any other patents related to the Patent Rights or Intellectual Property no later than 180 days before
expiration thereof. Licensors shall initiate, maintain and defend such patent extension application(s). Upon expiration of
any of the Patent, PCT Patent, Invention Patent, and/or any other additional patents related to the Patent Rights or
Intellectual Property, Licensors (or, if applicable, their successors) or Assign(s)) shall issue to the Company (or, if
applicable, its successor or assign) a new Technology License and Transfer Agreement in form and substance, which is
substantially similar to this Agreement and which shall extend and expand the Company's rights hereunder as they relate to
the Patent, PCT Patent, Invention Patent, Patent Rights, Product, End Products and Intellectual Property along with any
products, services, processes, designs, methods, materials, ingredients, improvements or inventions utilized thereby or
derived there from, for a new extended term, which is in perpetuity (or some other shorter period if law requires such
shorter period in a certain applicable jurisdiction, in which case the shorter period shall only apply in that
Jurisdiction).
19
NEED FOR ANY GOVERNMENT APPROVAL OR PRINCIPAL PRODUCTS
We may face regulatory actions or other
sanctions from regulatory agencies. These regulatory agencies may impose fines and penalties on our operations, limit our operating
privileges, delay or restrict the repatriation of the proceeds from this offering, or take other actions that could have a material
adverse effect on our business, financial condition, results of operations, reputation and prospects, as well as the trading price
of our common stock. The regulatory agencies also may take actions requiring us, or making it advisable for us, to halt this offering
before settlement and delivery of the common stock offered hereby. Consequently, if you engage in market trading or other activities
in anticipation of and prior to settlement and delivery, you do so at the risk that settlement and delivery may not occur.
Any uncertainties and/or negative publicity
regarding this approval requirement could have a material adverse effect on the trading price of our common stock.
GOVERNMENT AND INDUSTRY REGULATION
We will be subject to federal laws and
regulations that relate directly or indirectly to our operations including securities laws. We will also be subject to common business
and tax rules and regulations pertaining to the operation of our business.
ENVIRONMENTAL LAWS
The Company's product is bio degradable
and non-toxic. We do not anticipate any problems with environmental laws.
However,
as a manufacturer, we are subject to various environmental laws and regulations on air emission, wastewater discharge, solid wastes
and noise. Although we believe that our operations are in substantial compliance with current environmental laws and regulations,
we may not be able to comply with these regulations at all times as the environmental legal regime is evolving and becoming more
stringent. Therefore, if the government imposes more stringent regulations in the future, we may have to incur additional and potentially
substantial costs and expenses in order to comply with new regulations, which may negatively affect our results of operations.  Further,
no assurance can be given that all potential environmental liabilities have been identified or properly quantified or that any
prior owner, operator, or tenant has not created an environmental condition unknown to us.  If we fail to comply with
any of the present or future environmental regulations in any material aspects, we may suffer from negative publicity and be
subject to claims for damages that may require us to pay substantial fines or have our operations suspended or even be forced to
cease operations.
EMPLOYEES AND EMPLOYMENT AGREEMENTS
The Company currently has one full time
and two part time employees pending funding.
Messrs. Halim, Kruse Cruz
and Kruse Velazquez are essential to our ability to continue to grow our business.  Each of these key employees has established
relationships within the industries in which we operate. Each of these employees have agreed to non-solicitation and non-compete
restrictions during the course of their employment with us, however, these restrictions only extend for a one year period from
termination.  Further, we do not maintain, or intend to maintain, key person life insurance for any of our officers or
key employees.  If any of them were to leave us, our growth strategy might be hindered, which could limit our ability
to increase revenue. In addition, we face competition for attracting skilled personnel. If we fail to attract and retain qualified
personnel to meet current and future needs, this could slow our ability to grow our business, which could result in a decrease
in market share.
LEGAL PROCEEDINGS
We are not involved in any pending legal
proceeding nor are we aware of any pending or threatened litigation against us.
MARKET FOR COMMON EQUITY AND RELATED
STOCKHOLDER MATTERS
The Company's Common Stock is currently quoted on the
OTC:PK Board.
20
PENNY STOCK RULES
The Securities and Exchange Commission
has adopted rules that regulate broker-dealer practices in connection with transactions in penny stocks. Penny stocks are generally
equity securities with a price of less than $5.00 (other than securities registered on certain national securities exchanges or
quoted on the Nasdaq system, provided that current price and volume information with respect to transactions in such securities
is provided by the exchange or system).
A purchaser is purchasing penny stock that
limits the ability to sell the stock. The shares offered by this prospectus constitute penny stock under the Securities and Exchange
Act. The shares will remain penny stocks for the foreseeable future. The classification of penny stock makes it more difficult
for a broker-dealer to sell the stock into a secondary market, which makes it more difficult for a purchaser to liquidate his/her
investment. Any broker-dealer engaged by the purchaser for the purpose of selling his or her shares in us will be subject to Rules
15g-1 through 15g-10 of the Securities and Exchange Act. Rather than creating a need to comply with those rules, some broker-dealers
will refuse to attempt to sell penny stock.
The penny stock rules require a broker-dealer,
prior to a transaction in a penny stock not otherwise exempt from those rules, to deliver a standardized risk disclosure document,
which:
-
Contains a description of the nature and level of risk in the market for penny stock in both Public offerings and secondary trading;
-
Contains a description of the broker's or dealer's duties to the customer and of the rights and remedies available to the customer with respect to a violation of such duties or other requirements of the Securities Act of 1934, as amended;
-
Contains a brief, clear, narrative description of a dealer market, including "bid" and "ask" price for the penny stock and the significance of the spread between the bid and ask price;
-
Contains a toll-free number for inquiries on disciplinary actions;
-
Defines significant terms in the disclosure document or in the conduct of trading penny stocks; and
-
Contains such other information and is in such form (including language, type, size and format) as the Securities and Exchange Commission shall require by rule or regulation.
-
The broker-dealer also must provide, prior to effecting any transaction in a penny stock, to the customer:
-
The bid and offer quotations for the penny stock;
-
The compensation of the broker-dealer and its salesperson in the transaction;
-
The number of shares to which such bid and ask prices apply, or other comparable information relating to the depth and liquidity of the market for such stock; and
-
Monthly account statements showing the market value of each penny stock held in the customer's account.
In addition, the penny stock rules require
that prior to a transaction in a penny stock not otherwise exempt from those 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 acknowledgement
of the receipt of a risk disclosure statement, a written agreement to transactions involving penny stocks, and a signed and dated
copy of a written suitability statement. These disclosure requirements will have the effect of reducing the trading activity in
the secondary market for our stock because it will be subject to these penny stock rules. Therefore, stockholders may have difficulty
selling their securities.
21
REPORTS
We are subject to certain reporting requirements
and will furnish annual financial reports to our stockholders, certified by our independent accountants, and will furnish un-audited
quarterly financial reports in our quarterly reports filed electronically with the SEC. All reports and information filed by us
can be found at the SEC website,
www.sec.gov
.
STOCK TRANSFER AGENT
The Company's transfer agent is OTR,
Inc., located at 1001 SW 5
th
Avenue, Suite 1550, Portland, OR 97205, telephone: (503) 225-0375, fax: 503-273-9168 The
Transfer Agent is registered under the Exchange Act of 1934, as amended, and the appropriate regulatory authority is the U.S. Securities
Exchange Commission.
FINANCIAL STATEMENTS
Our fiscal year-end is May 31. We intend
to provide financial statements audited by an Independent Registered Accounting Firm to our shareholders in our annual reports.
The audited financial statements for the period ended May 31, 2011 and May 31, 2012 and the Quarterly period ended August 31, 2012
immediately follow.
MANAGEMENT'S DISCUSSION AND ANALYSIS
OR PLAN OF OPERATION
The following discussion and analysis
is intended as a review of significant factors affecting our financial condition and results of operations for the periods indicated.
 The discussion should be read in conjunction with our consolidated financial statements and the notes presented herein.  In
addition to historical information, the following Management's Discussion and Analysis of Financial Condition and Results of Operations
contains forward-looking statements that involve risks and uncertainties. Our actual results could differ significantly from those
anticipated in these forward-looking statements as a result of certain factors discussed in this annual report.
MANAGEMENT'S PLAN OF OPERATION
The following discussion of our financial
condition, changes in financial condition and results of operations for the period ended May 31, 2012.
The analysis
of new business opportunities will be undertaken by or under the supervision of the officers and directors of the Company. The
Company has unrestricted flexibility in seeking, analyzing and participating in potential business opportunities.
The Company aspires to be a fully reporting company by the end of the 4
th
quarter 2012.
GOING CONCERN
The accompanying financial statements have
been prepared assuming the Company will continue as a going concern.
The future of the Company is dependent
upon its ability to obtain financing and upon future profitable operations from the development of its new business opportunities.
Management has plans to seek additional capital through a private placement and this public offering of its common stock. These
conditions raise substantial doubt about the Company's ability to continue as a going concern. These financial statements do not
include any adjustments that might arise from this uncertainty.
The financial statements do not include
any adjustments relating to the recoverability and classification of recorded assets, or the amounts of and classification of liabilities
that might be necessary in the event the Company cannot continue in existence.
RESULTS OF OPERATIONS
For the year-ended May 31, 2012 compared
to the period ended May 31, 2011.
At May 31, 2012, we have generated no operating
revenue. We earned $103,770.00 in revenues during the twelve-month period ended May 31, 2011. No revenues were earned during the
three months ended August 31, 2012.
Operating expenses for the twelve months
ended May 31, 2012 totaled $2,340.00. For the three months ended August 31, 2012, operating expenses totaled $79,156. The increase
was primarily due to increased professional fees for filing and other professional expenses associated with the merger with WSVPA.
22
We incurred a net loss of $6,270.00 during the twelve month
period ended May 31, 2012, as compared to a gain of $103,770.00 for the same period ended May 31, 2011. During the three month
period ended August 31, 2012, the Company incurred a net loss of $79,156.
Liquidity and Capital Resources
During the twelve months ended May 31,
2012 we experienced negative cash flow of $2,340.00 from operating activities. We recognized positive cash flow from financing
activities, relating to contributions to capital, proceeds from share issuance, repayments to and conversion from related party
loans, in the amount of $103,770.00 during the same period ended May 31, 2011. We experienced negative cash flow of $7,250 for
the three months ended August 31, 2012.
The accompanying financial statements have
been prepared assuming the Company will continue as a going concern.
PROPOSED MILESTONES TO IMPLEMENT BUSINESS
OPERATIONS
(Phase 1) We intend to seek investment
equity and financing to construct one Production Plant by the end of the first year. We have built the financial proformas around
this scenario, which will be available after appropriate NDAs and Letters of Intent are signed.
(Phase 2) Starting with Year 2, the Company
then has the option to 1) construct a second Production Plant and have it in full production by the end of the 2
nd
year;
2) focus on setting up license agreements for building PVA Machines to be shipped to other countries, such as Thailand (where much
of Asia's and US plastics are produced and for which we have direct access to the main companies involved); or 3) a combination
of the two.
Company Structure: The Founders have set
up a Hong Kong based Holding Company, along with a Marketing Company (Hong Kong) and Production Company (China.) utilizing their
own funds. Approximately $400,000 was expended on this effort during 2011 and $156,000 during the current year. This structure
is designed to maximize the return of investment and flexibility of the Company's operation, while minimizing taxes and creating
zero risk to the holding company when the subsidiaries are merged in. The Marketing Company will be responsible to build the brand,
secure global contracts for the sale of the PVA Film and products. The Production Company in China, will be responsible for the
manufacturing of the PVA Film machines and production of the PVA Film. In future phases, this Company will produce PVA Film Machines
to be licensed outside of China, beginning with North America.
CRITICAL ACCOUNTING POLICIES
A.
BASIS OF ACCOUNTING
Nature of Business
Zyrox Mining International,
Inc. (formerly Diversified Energy & Fuel, Inc. until August 15, 2012)
was incorporated in the State of Nevada on June
3, 2009. Zyrox Mining International, Inc. began formal operations on June 3, 2009, with the principle purpose of developing, marketing
and selling software products through the Internet, and to provide web based services for individuals and small business. During
2010, this business was discontinued and management focused on developing a biodegradable plastic opportunity.
On November 8, 2010, the Company entered into an agreement to
acquire 100% of the Membership Interests of WSVPA Bio Products Incorporated, a Nevada LLC in consideration for 102,238,200 shares
of common stock. After completion of their due diligence, WSPVA formally closed on the transaction on May 12, 2012. The Company
subsequently received 500,000,000 Class "A" membership units and 1,000,000 Class "B" membership units representing
100% of the membership interest of WSPVA (dissolvingplastic.com) in return for 102,238,200 common shares of the Company and WSPVA
is now a wholly owned subsidiary of the Company.
Use of Estimates
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and
the reported amounts of revenues and expenses during the reporting period. The financial statements include estimates based on
currently available information and management's judgment as to the outcome of future conditions and circumstances.
23
Changes in the status of certain facts or circumstances could
result in material changes to the estimates used in the preparation of financial statements and actual results could differ from
the estimates and assumptions.
Basic (Loss) Per Share
Basic (loss) per share is calculated by
dividing the Company's net loss applicable to the weighted average number of shares outstanding during the period. Diluted
earnings per share are calculated by dividing the Company's net income available to shareholders by the diluted weighted
average number of shares outstanding during the period. The diluted weighted average number of shares outstanding is the basic
weighted average number of shares outstanding adjusted for any potentially dilutive debt or equity.
Dividends
We have never declared or paid any dividends
on our common stock. We currently intend to retain any future earnings for use in the operation and expansion of our business.
We do not expect to pay any cash dividends in the foreseeable future but will review this policy as circumstances dictate.
Comprehensive Income
The Company has no component of other
comprehensive income. Accordingly, net income equals comprehensive income for the periods ended
May
31, 2012 and May 31, 2011.
Cash and Cash Equivalents
The Company considers all highly liquid
instruments purchased with an original maturity of three months or less to be cash equivalents to the extent the funds are not
being held for investment purposes.
Reclassifications
Certain amounts relating to the prior year's
financial statements have been reclassified to conform to the results of the current year presentation. These reclassifications
had no effect on the previously reported results of operations or accumulated deficit.
Income Taxes
The Company provides for income taxes under
ASC Topic 740, Accounting for Income Taxes. ASC Topic 740 requires the use of an asset and liability approach in accounting for
income taxes. Deferred tax assets and liabilities are recorded based on the differences between the financial statement and tax
bases of assets and liabilities and the tax rates in effect when these differences are expected to reverse. The Company has elected
to be taxed as a corporation for Federal and State income taxes.
ASC Topic 740 requires the reduction of
deferred tax assets by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some
or all of the deferred tax assets will not be realized.
Accounting Basis
The basis is accounting principles generally
accepted in the United States of America. The Company has adopted a May 31 fiscal year-end.
24
Stock-Based Compensation
The Company accounts for share based payments
in accordance with ASC 718, Compensation - Stock Compensation, which requires all share-based payments to employees, including
grants of employee stock options, to be recognized in the financial statements based on the grant date fair value of the award.
In accordance with ASC 718-10-30-9, Measurement Objective – Fair Value at Grant Date, the Company estimates the fair value
of the award using a valuation technique. For this purpose, the Company uses the Black-Scholes option-pricing model. The Company
believes this model provides the best estimate of fair value due to its ability to incorporate inputs that change over time, such
as volatility and interest rates, and to allow for actual exercise behavior of option holders. Compensation cost is recognized
over the requisite service period, which is generally equal to the vesting period. Upon exercise, shares issued will be newly issued
shares from authorized common stock.
ASC 505, "Compensation-Stock Compensation",
establishes standards for the accounting for transactions in which an entity exchanges its equity instruments to non-employees
for goods or services. Under this transition method, stock compensation expense includes compensation expense for all stock-based
compensation awards granted on or after January 1, 2006, based on the grant-date fair value estimated in accordance with the provisions
of ASC 505.
Recent Accounting Pronouncements
The Company has evaluated the recent accounting
pronouncements through ASU 2012-02 and believes that none of them will
have a material effect on
the Company's financial statements.
The financial statements are prepared using
the accrual method of accounting. The statements were prepared following generally accepted accounting principles of the United
States of America consistently applied. The Company has elected a May 31, year-end.
DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS
Directors of the corporation are elected by the stockholders
to a term of one year and serve until a successor is elected and qualified. Officers of the corporation are appointed by the Board
of Directors to a term of one year and serves until a successor is duly appointed and qualified, or until he or she is removed
from office. The Board of Directors has no nominating, auditing or compensation committees.
The name, age and position of our officer and director is set
forth below:
Name
Age
First Year as Director
Position
Carl Kruse
72
2009
President, Secretary, Director
Aslam Halim
55
2009
Executive Vice President, Director
Carl Kruse Velazquez
47
2009
Treasurer, Director
The term of office of each director of
the Company ends at the next annual meeting of the Company's stockholders or when such director's successor is elected and qualifies.
No date for the next annual meeting of stockholders is specified in the Company's bylaws or has been fixed by the Board of Directors.
The term of office of each officer of the Company ends at the next annual meeting of the Company's Board of Directors, expected
to take place immediately after the next annual meeting of stockholders, or when such officer's successor is elected and qualifies.
Directors are entitled to reimbursement
for expenses in attending meetings but receive no other compensation for services as directors. Directors who are employees may
receive compensation for services other than as director. No compensation has been paid to directors for services.
25
BACKGROUND INFORMATION ABOUT OUR OFFICERS
AND DIRECTORS
The following information sets forth the
backgrounds and business experience of the executive officers and directors:
Carl Kruse Cruz– President, Secretary, Director.
Mr.
Kruse has been self-employed as an auditor and management consultant for the past 30 years. As an owner/operations/administrative
executive, he brings a wealth of experience in project planning, management and execution. He was an executive with PepsiCo and
Pfizer, served as CFO for SkyPostal Networks, Inc. (OTCBB: SKPN) and was an audit manager for the firm currently known as Ernst
& Young, CPA's. Mr. Kruse is a certified public account formerly licensed to practice in the states of Florida and New
York and in the Commonwealth of Puerto Rico. He has an MBA in Managerial Accounting from New York University and a BBA in Production
Management from the Baruch School of Business and Public Administration of the City University of New York. He has been associated
with the Company since 2009.
Aslam Halim – Executive Vice President, Director.
Mr.
Halim is
Graduate of the University of British Columbia.
He has
over 36 years of experience as a businessman. He successfully built numerous businesses from ground up and sold them at their
peak. He worked for New York Life Insurance Company in the finance department from 1986 to 1992 where he got his business training
in real estate development. For the past 12 years, Mr. Halim has lived in China and studied China's philosophy, understanding
the Chinese culture and developing good relationships with many of the State owned companies. He is currently working on numerous
international projects that involve China State owned and multinational corporations in the development of natural resources in
China and abroad. He serves as
President of Da Hai International Trading
Limited and Fushun Dahai Lichang Metal Products Co., Ltd. Mr. Halim has held this position since 2009.
Carl Kruse Velazquez – Treasurer and Director.
Carl
Kruse has more than 20 years experience as an entrepreneur and businessman. Mr. Kruse began his career with Deloitte and Touch
in New York and continued with that firm in London.
In his position at Deloitte, Mr. Kruse was involved in the preparation
of GAAP financial statements and evaluation, the effectiveness of internal controls over financial reporting and SEC reporting
and regulations compliance. He will be responsible for the daily record keeping and the preparation of financial statements in
accordance with U.S. GAAP.
He has founded and sold three separate businesses
and today specializes in raising capital for a wide range of enterprises and projects. Mr. Kruse has traveled extensively throughout
the Caribbean, Latin America, Europe, Africa and the Middle East and is fluent in English and Spanish and knowledgeable of French,
Portuguese and Finnish. He holds a BA,
Magna Cum Laude
, from Princeton University, an MBA from New York University and an
M.A. from Stanford University. Mr. Kruse has held this position since 2009.
The Board believes that each of the Company's
directors is highly qualified to serve as a member of the Board. Each of the directors has contributed to the mix of skills, core
competencies and qualifications of the Board.
None of our current directors hold or held
any directorships during the past five years in other reporting companies. Presently, none of our directors is an "independent
director" under the Corporate Governance Rules of the NASDAQ Stock Market, Inc., Rule 5605(a)(2). There are
no family relationships among any of our directors or executive officers other than Carl Kruse Cruz being the father of Carl Kruse
Velazquez.
CORPORATE GOVERNANCE GUIDELINES
Our Board has long believed that good corporate
governance is important to ensure that we are managed for the long-term benefit of our stockholders. Our common stock is not currently
quoted on any listed exchange. However, our Board believes that the corporate governance rules of NASDAQ and NYSE MKT LLC represent
good governance standards and, accordingly, during the past year, our Board has continued to review our governance practices in
light of the Sarbanes-Oxley Act of 2002, the new rules and regulations of the Securities and Exchange Commission and the new listing
standards of NASDAQ and NYSE MKT LLC, and it has implemented certain of the foregoing rules and listing standards during this past
fiscal year.
SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING
COMPLIANCE
Section 16(a) of the Securities Exchange
Act of 1934 requires our directors and executive officers, and persons who own more than ten percent of our common stock, to file
with the Securities and Exchange Commission initial reports of ownership and reports of changes of ownership of our common stock.
Officers, directors and greater than ten percent stockholders are required by SEC regulation to furnish us with copies of all Section
16(a) forms they file.
We intend to ensure to the best of our
ability that all Section 16(a) filing requirements applicable to our officers, directors and greater than ten percent beneficial
owners are complied with in a timely fashion.
26
EXECUTIVE COMPENSATION
Currently, our officers and director receive
no compensation except for Carl Kruse, the Company's President, Secretary and Director who has an employment contract with
the Company for $250,000.00 per year beginning September 1, 2012. The other Officers and Directors have received shares of common
stock previously issued, for services during the development stage of the Company's business operations and/or for their
sale of their WSPVA shares. They are reimbursed for any out-of-pocket expenses that they incur on our behalf. In the future, we
may approve payment of salaries for officers and directors, but currently, no such plans have been approved. We also do not currently
have any benefits, such as health or life insurance, available to our employees.
The Board of the Directors authorized the
issue of its common shares to the officers and directors that had been serving without compensation in the following amounts:
Carl Kruse, President, Secretary and Director
500,000 common shares and 855,000 Preferred A
Aslam Halim, Executive Vice-President and Director
25,935,650 common shares
Carl Kruse Velazquez, Treasurer and Director
660,000 common shares
SUMMARY COMPENSATION TABLE
Annual Compensation
Long-Term Compensation
Name and
Principal Position
Year
Salary ($)
Bonus
($)
Stock
Awards ($)
Option
Awards ($)
Non-Equity
Incentive (#)
Deferred
Comp
Earnings
($)
All Other ($)
Carl Kruse Cruz
2012
83,333
0
$
500
-
-
-
-
President, Secretary, and
-
Director
2011
0
0
-
-
-
-
Aslam Halim
2012
-
-
$
25,935
-
-
-
-
Executive Vice President, and
Director
2011
-
-
-
-
-
-
-
Carl Kruse Velazquez
2012
-
-
$
660
-
-
-
-
Treasurer and Director
2011
-
-
-
-
-
-
-
OPTION GRANTS
There have been no individual grants of
stock options to purchase our common stock made to the executive officer named in the Summary Compensation Table.
AGGREGATED OPTION EXERCISES AND FISCAL
YEAR-END OPTION VALUE
There have been no stock options exercised
by the executive officer named in the Summary Compensation Table.
LONG-TERM INCENTIVE PLAN ("LTIP")
AWARDS
There have been no awards made to a named
executive officer in the last completed fiscal year under any LTIP.
27
COMPENSATION OF DIRECTORS
Directors are permitted to receive fixed
fees and other compensation for their services as directors. The Board of Directors has the authority to fix the compensation of
directors. No amounts have been paid to, or accrued to, our director in such capacity.
EMPLOYMENT CONTRACTS AND OFFICERS'
COMPENSATION
Carl Kruse Cruz, the Company's President,
Secretary and Director currently has an employment contract with the Company, which calls for an annual salary of $250,000 effective
September 1, 2012. No other Board members have employment contracts with the Company currently. The Board of Directors will determine
future compensation and, as appropriate, employment agreements executed.
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL
OWNERS AND MANAGEMENT
The following table sets forth, as of the
date of this prospectus, the total number of shares owned beneficially by our directors, officers and key employees, individually
and as a group, and the present owners of 5% or more of our total outstanding shares. The table also reflects what the percentage
of ownership will be assuming completion of the sale of all shares in this offering, which we cannot guarantee. The stockholders
listed below have direct ownership of their shares and possess sole voting and dispositive power with respect to the shares.
Percent of Class
Title of
Name, Title and Address of
Amount of Beneficial
Before
After
Class
Beneficial Owner of Shares (1)
Ownership (2)
Offering
Offering (3)
4
Common
Carl Kruse
500,000
.5
.3
President and Secretary
Aslam Halim
25,935,650
25.4
17.1
VP & Director
Carl Kruse Velazquez 660,000
.5
.4
Treasurer and Director
All Officers and Directors as a Group
27,095,650
26.5
17.8
1. The address of each executive officer
and director is c/o Zyrox Mining International, Inc., 1800 NE 114
th
Street, Suite 609, Miami, Florida 33181.
2. As used in this table, "beneficial
ownership" means the sole or shared power to vote, or to direct the voting of, a security, or the sole or share investment
power with respect to a security (i.e., the power to dispose of, or to direct the disposition of a security).
3. Assumes the sale of the maximum amount
of this offering (50,000,000 shares of common stock) by Zyrox Mining International, Inc. The aggregate amount of shares to be issued
and outstanding after the offering is 152,238,200.
FUTURE SALES BY EXISTING STOCKHOLDERS
Further new issues of stock unless registered
will be restricted securities, as that term is defined in Rule 144 of the Rules and Regulations of the SEC promulgated under the
Act. Under Rule 144, such shares can be publicly sold, subject to volume restrictions and certain restrictions on the manner of
sale, commencing one year after their acquisition. Any sale of shares held by the existing stockholders (after applicable restrictions
expire) and/or the sale of shares purchased in this offering (which would be immediately resalable after the offering), may have
a depressive effect on the price of our common stock in any market that may develop, of which there can be no assurance.
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
We do not currently have any conflicts
of interest by or among our current officer, director, key employee or advisors. We have not yet formulated a policy for handling
conflicts of interest, however, we intend to do so upon completion of this offering and, in any event, prior to hiring any additional
employees.
28
INDEMNIFICATION
Pursuant to the Articles of Incorporation
and By-Laws of the corporation, we may indemnify an officer or director who is made a party to any proceeding, including a lawsuit,
because of his position, if he acted in good faith and in a manner he reasonably believed to be in our best interest. In certain
cases, we may advance expenses incurred in defending any such proceeding. To the extent that the officer or director is successful
on the merits in any such proceeding as to which such person is to be indemnified, we must indemnify him against all expenses incurred,
including attorney's fees. With respect to a derivative action, indemnity may be made only for expenses actually and reasonably
incurred in defending the proceeding, and if the officer or director is judged liable, only by a court order. The indemnification
is intended to be to the fullest extent permitted by the laws of the State of Nevada.
Insofar as indemnification for liabilities
arising under the Securities Act may be permitted to our directors, officers and controlling persons pursuant to the provisions
above, or otherwise, we have been advised that in the opinion of the Securities and Exchange Commission, such indemnification is
against public policy as expressed in the Securities Act, and is, therefore, unenforceable.
In the event that a claim for indemnification
against such liabilities, other than the payment by us of expenses incurred or paid by one of our directors, officers, or controlling
persons in the successful defense of any action, suit or proceeding, is asserted by one of our directors, officers, or controlling
person in connection with the securities being registered, we will, unless in the opinion of our 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, and we will be governed by the final adjudication of such issue.
AVAILABLE INFORMATION
We have filed a registration statement
on Form S-1, of which this prospectus is a part, with the U.S. Securities and Exchange Commission. Upon completion of the registration,
we will be subject to the informational requirements of the Exchange Act and, in accordance therewith, will file all requisite
reports, such as Forms 10-K, 10-Q, and 8-K, proxy statements, under Section 14 of the Exchange Act and other information with the
Commission. Such reports, proxy statements, this registration statement and other information, may be inspected and copied at the
public reference facilities maintained by the Commission at 100 Fifth Street NE, Washington, D.C. 20549. Copies of all materials
may be obtained from the Public Reference Section of the Commission's Washington, D.C. office at prescribed rates. You may
obtain information regarding the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. The Commission also
maintains a Web site that contains reports, proxy and information statements and other information regarding registrants that file
electronically with the Commission at http://www.sec.gov.
29
TABLE OF CONTENTS
Report of Independent Registered Public Accounting Firm
F-1
Balance Sheet for Year Ended May 31, 2012 and May 31, 2011
F-2
Income Statement for Year Ended May 31, 2012 and May 31, 2011
F-3
Cash Flow Statement for Year Ended May 31, 2012 and May 31, 2011
F-4
Statement of Stockholder's Equity
F-5
Notes to Financial Statements
F-6
Balance Sheet for Quarter Ended August 31, 2012
F-11
Income Statement for Quarter Ended August 31, 2012
F-12
Cash Flow Statement for Quarter Ended August 31, 2012
F-13
Statement of Stockholder's Equity
F-14
Notes to Financial Statements
F-15
REPORT OF INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM
ENRIQUE NOWOGRODZKI, CPA
CPA Services Corp. Com
Certified Public Accountants
18501 Pines Boulevard, Suite 204, Pembroke Pines, FL 33029
954-261-2413 - FAX: 305-356-7094
ACCOUNTANTS AND ADVISORS
PCAOB REGISTERED
REPORT OF INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM
To the Board of Directors
Zyrox Mining International, Inc.
(A Development Stage Company)
We have audited the accompanying restated
balance sheets of Zyrox International Mining, Inc. (A Development Stage Company) as of May 31, 2012 and 2011, and the related restated
statements of operations, stockholders' equity and cash flows through May 31, 2012, 2011 and Inception on June 3, 2009 through
May 31, 2009. These financial statements are the responsibility of the Company's management. Our responsibility is to express
an opinion on these financial statements based on our audits.
We conducted our audits in accordance with
standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the
audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the restated financial
statements referred to above present fairly, in all material respects, the financial position of Zyrox Mining International, Inc.
(A Development Stage Company) as of May 31, 2012 and 2011 and the results of its restated operations and its cash flows through
May 31, 2012, 2011 and Inception on June 3, 2009 through May 31, 2010, in conformity with accounting principles generally accepted
in the United States of America.
The accompanying financial statements have
been prepared assuming that the Company will continue as a going concern. The Company has never generated any revenues, has accumulated
a loss of $7,125 and currently lacks the capital to pursue its business plan, which raises substantial doubt about its ability
to continue as a going concern. Management's plans concerning these matters are described in Note I. The financial statements
do not include any adjustments that might result from the outcome of this uncertainty.
Sincerely,
/S/ Enrique Nowogrodzki
Enrique Nowogrodzki
F-
1
ZYROX MINING INTERNATIONAL, INC.
BALANCE SHEET
As at May 31, 2012 and 2011
May 31, 2012
May 31, 2011
ASSETS
Cash on hand
$
170
$
170
Investment in WSVPA Bio Products International, LLC
98,482,000
TOTAL ASSETS
$
98,482,170
$
170
LIABILITIES
Due to Stockholders
$
2,340
$
4,100
Working capital commitment to WSPVA
2,750,000
STOCKHOLDERS' EQUITY
Common stock, $.001 par value: 3,000,000,000 shares authorized, 102,238,200 shares issued and outstanding at May 31, 2012
102,239
$
98,985
Capital paid in excess of par value
95,633,006
0
Preferred shares, $.001 par value:  300,000,000 shares authorized, 855,000 shares Series "A" issued and outstanding at May 31, 2012 855
855
Accumulated deficit
(6,270
)
103,770
TOTAL STOCKHOLDERS' EQUITY
95,729,830
(3,930
)
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY
$
98,482,170
$
170
The Accompanying Notes Are An Integral Part of these Financial
Statement
s
F-
2
ZYROX MINING INTERNATIONAL, INC.
Income Statement
For the years ended May 31, 2012 and
2011
May 31, 2012
May 31, 2011
Operating Revenues
$
0
$
0
Reversal of Issuance of shares for donated services in prior period
98,985
Net Income
98,985
Expense
Professional fees
2,000
1,500
Bank fees
240
30
Office supplies
100
100
Miscellaneous expenses
3,155
Issuance of shares for services
98,885
Deficit at beginning of year
(98,985
)
Net loss
$
(2,340
)
$
(103,770
)
The Accompanying Notes Are An Integral Part of these Financial
Statements
F-
3
ZYROX MINING INTERNATIONAL, INC.
Source and application of Cash Flows
For the years ended May 31, 2012 and
2011
May 31, 2012
May 31, 2011
Sources and Application of Cash in Bank:
Net loss
$
(2,340
)
$
(103,770
)
Income from acquisition activities
98,985
Loan from shareholder
2,340
Less adjustments to reconcile net income (loss) to net cash flows:
Reversal of issuance of common shares
(98,985
)
Issuance of common shares for donated services
98,985
Loan from Shareholder converted to common shares
(4,100
)
4,100
Increase in common stock
3,254
Increase in capital paid in excess of par
914
Conversion of preferred to common
(145
)
Cash and cash equivalents at beginning of period
170
1,000
Cash and cash equivalents at end of period
$
170
$
170
The Accompanying Notes Are An Integral Part of these Financial
Statements
F-
4
ZYROX MINING INTERNATIONAL, INC.
Statement of Stockholders' Equity
June 1, 2010 through May 31, 2012
Total
Stated
Additional
Stockholders'
Number
Value
Paid-in Capital
Equity
Balance – June 1, 2010
1,000,000
1,000
1,000
Conversion of preferred to common
(145
)
(145
)
(145
)
Issuance of common shares
98,984,744
98,985
98,985
Accumulated deficit
(103,770
)
Balance – May 31, 2011
98,984,599
98,985
(3,930
)
Paid in capital
96,136,861
96,136,861
Issuance of common shares, Note 1
3,253,456
4,100
3,254
Retained earnings
96,645
Balance – May 31, 2012
102,238,055
$
103,085
$
96,232,830
The Accompanying Notes Are An Integral Part of these Financial
Statements
F-
5
ZYROX MINING INTERNATIONAL, INC.
Notes
to Financial Statements
May 31, 2012 and 2011
Note A – NATURE OF ACTIVITIES AND ORGANIZATION
Zyrox Mining International, Inc. (The Company) common
stock trades on the over-the-counter ("OTC") market and is currently quoted on the OTC Markets Group Quotation Service
and on other financial websites under the symbol "ZYRX". The Company began trading as Riverdale Capital Ltd. under
the symbol "RICP" on June 3, 2009. On April 30, 2012, he Company changed its name to Diversified Energy & Fuel
International, Inc. Effective August 15, 2012 the Company changed its name to Zyrox Mining International, Inc. and its symbol to
ZYRX.
On September 3, 2009, RICP acquired
Internet Properties Group ("IPG)") for 6,430,000 common shares. As a result of the acquisition of IPG, Philip T. Kueber
became the controlling shareholder of the Company, holding 44% of the Common Shares outstanding and 100% of the Preferred Shares
outstanding. On September 30, 2009, this transaction was reversed. As a result of the above situation, the former President/Sole
Director, Philip T. Kueber, resigned from his positions and transferred his interests in the Company for $250,000 he personally
owed to the current President, resulting in a change of control.
On September 8, 2010, FINRA approved
a 1:10,000 reverse split effective September 9, 2010. All financial statements have been adjusted to reflect the reverse.
The Company finalized the acquisition
of a biodegradable plastic manufacturer, WSPVA, Bio Products International, LLC, a Nevada LLC, on March 12, 2012 for 102,238,200
common shares, of which 98,984,744 had been issued to WSPVA shareholders in the prior fiscal year and recorded as Issuance of Common
Shares for Donated Services because of the uncertainty of completing the transaction. The Company now owns 100% of the equity interests
of this wholly owned subsidiary. With the transaction completed, the market value of the shares issued on March 12, 2012 was recorded
as the purchase price for WSPVA.
The Company fiscal year end is May 31.
The Company has not been in bankruptcy, receivership
or any similar proceeding, and continues to review merger-acquisitions as part of its ongoing business strategy.
The Company does not currently compensate officers
or directors who serve on the board of directors.
Management and administrative support:
Since
inception, the Company has received the majority of its managerial services and administrative support at no cost from management
and shareholders of the Company.
F-
6
NOTE B – SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES
The Company prepares its financial
statements in accordance with generally accepted accounting principles in the United States. In the opinion of management, all
adjustments have been made to present fairly the financial statements of the Company. This basis of accounting involves the application
of accrual accounting and consequently, revenues and gains are recognized when earned, and expenses and losses are recognized when
incurred.
The financial statements are expressed in
U.S. funds.
NOTE C – CASH EQUIVALENTS
Cash equivalents include financial instruments with
an original maturity of three months or less. The Company may maintain cash and cash equivalent deposits in excess of federally
insured limits at certain financial institutions.
NOTE D – USE OF ESTIMATES
The preparation of financial statements in conformity
with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements,
and the reported amounts of revenues and expenses during the reporting period. The financial statements include estimates based
on currently available information and management's judgment as to the outcome of future conditions and circumstances.
Changes in the status of certain facts or circumstances
could result in material changes to the estimates used in the preparation of financial statements and actual results could differ
from the estimates and assumptions.
NOTE E – REVENUE RECOGNITION
The carrying amounts of share subscriptions receivable
approximate their fair values because of the short-term nature of these instruments. Common shares are valued at the lower of cost
or market value.
NOTE F – FAIR VALUE OF FINANCIAL
INSTRUMENTS
The carrying amounts of share subscriptions receivable
approximate their fair values because of the short-term nature of these instruments. Common shares are valued at the lower of cost
or market value.
F-
7
NOTE G – IMPAIRMENT OF
LONG-LIVED ASSETS
Long-lived assets held and used by the Company are
reviewed for possible impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be
recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the assets to the
estimated undiscounted cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment
to be recognized is measured by the amount by which the carrying amount of the asset exceeds the fair value thereof.
In December 2004, the Financial Accounting Standards
Board ("FASB") issued Statement No. 153 (SFAS 153), Exchanges of Nonmonetary Assets—an amendment of APB Opinion
No. 29. The guidance in APB Opinion No. 29, Accounting for Nonmonetary Transactions, is based on the principle that exchanges of
nonmonetary assets should be measured based on the fair value of the assets exchanged. The guidance in that Opinion, however, included
certain exceptions to that principle. This Statement amends Opinion 29 to eliminate the exception for nonmonetary exchanges of
similar productive assets and replaces it with a general exception for exchanges of nonmonetary assets that do not have commercial
substance. A nonmonetary exchange has commercial substance if the future cash flows of the entity are expected to change significantly
as a result of the exchange. The provisions of this Statement shall be effective for nonmonetary asset exchanges occurring in fiscal
periods beginning after September 15, 2006. The adoption of SFAS 153 did not have a material impact on the results of operations.
In June 2009, the Financial
Accounting Standards Board ("FASB") issued "The FASB Accounting Standards Codification and the Hierarchy of
Generally Accepted Accounting Principles", which establishes the FASB Accounting Standards Codification (" FASB
ASC") as the source of authoritative accounting principles recognized by the FASB to be applied in preparation of
financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP). The
ASC is effective for financial statements issued for interim and annual periods ending after September 15, 2009. The
Codification does not change or alter existing GAAP. The implementation had no impact to the Company's financial
position or results of operations.
NOTE H – COMPREHENSIVE INCOME
FASB ASC 220-10-20: Comprehensive Income
establishes standards for the reporting and disclosure of comprehensive income and its components, which will be presented in
association with a company's financial statements. Comprehensive income is defined as the change in a business enterprise's
equity during a period arising from transactions, events or circumstances relating to non-owner sources, such foreign
currency translation adjustments and unrealized gains or losses on available-for-sale securities. It includes all changes in
equity during a period except those resulting from investments by or distributions to owners.
F-
8
NOTE
I – CAPITAL STOCK
Management
has developed a strategic plan to develop its management team and to increase its acquisition of synergistic properties. Management
anticipates generating sufficient revenue to fund the operations of the Company during the next fiscal year and to acquire an
additional subsidiary.
NOTE
J – CAPITAL STOCK
Common
Shares Authorized – 3,000,000,000 common shares of $.001 par value
Issued
and Outstanding – 102 238,200 common shares
Preferred Shares Authorized
- 100,000,000 Series "A"
- 100,000,000 Series "B"
- 100,000,000 Series "C"
Issued and Outstanding
- 855,000 preferred shares Series "A"
NOTE
K – CONTINGENCIES
The Company may from time to time be subject to legal
proceedings and claims that may arise in the ordinary course of its business. There are no legal matters pending at the present
date.
NOTE L – SUBSEQUENT EVENTS
Management is currently in negotiations with Zyrox
Mining Co., Ltd., a British Columbia mining operation and has signed a Memorandum of Understanding with the Zyrox shareholders.
Discussions with a local Venture Capital firm are being finalized to obtain the necessary capital to close the transaction and
to expand the current operation.
The Company has engaged an attorney to file an S-1
to achieve fully reporting status with the SEC. The Company aspires to be a fully reporting company by the end of 4th quarter 2012.
F-
9
NOTE M – CERTIFICATION INFORMATION
AND DISCLOSURE STATEMENT
All information furnished herein has been prepared
from the books and records obtain from Zyrox Mining International, Inc. in accordance with rule 15c2-11 (a)(5) promulgated under
the Securities and Exchange Act of 1934, as amended, and is intended as information to be used by the public.
No dealer, salesman or any other person has been authorized
to give any information or to make any representations not contained herein in connection with the Company. Any representations
not contained herein must not be relied upon as having been made or authorized by the Company.
NOTE N - CAUTIONARY STATEMENT FOR PURPOSES OF THE
"SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT
Any statements in this report that
are not historical facts are intended to fall within the safe harbor for forward-looking statements provided by the Private Securities
Litigation Reform Act of 1995. These statements may be identified by such forward-looking terminology as "expect",
"look", "believe", and "anticipate", "may", "will", or similar statements
or variations of such terms. Any forward-looking statements should be considered in light of the risks and uncertainties associated
with Zyrox Mining International, Inc. and its businesses, economic and market conditions prevailing from time to time, and the
application and interpretation of Federal and state tax laws and regulations, all of which are subject to material changes and
which may cause actual results to vary materially from what had been anticipated. Certain factors that could affect Zyrox Mining
International, Inc. include conditions affecting revenues, reliance on key personnel, competition, and regulatory and legal matters.
F-
10
Zyrox Mining International, Inc.
BALANCE SHEET
As at August 31, 2012
ASSETS
Cash in Bank
$
7,420
Investment in WSVPA Bio Products International, LLC
98,985,000
TOTAL ASSETS
$
98,992,420
LIABILITIES
Due to Stockholder
$
88,746
Working Capital Commitment to WSVPA
2,750,000
STOCKHOLDERS' EQUITY
Common stock, $.001 par value: 3,000,000,000 shares authorized, 102,238,200 shares issued and outstanding at August 31
st
102,239
Capital paid in excess of par value
96,136,861
Preferred shares, $.001 par value:  300,000,000 shares authorized, 855,000 shares Series "A" issued and outstanding at August 31st
855
Accumulated deficit
(86,281
)
TOTAL STOCKHOLDERS' EQUITY
96,153,674
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY
$
98,992,420
The Accompanying Notes Are An Integral Part of these Financial
Statements
F-
11
Zyrox Mining International, Inc.
INCOME STATEMENT
For the three months ended August 31,
2012
Operating Revenues
$
0
Professional fees
39,853
Claims options
32,000
Bank fees
240
Office supplies
1,413
Net loss
$
(79,156
)
The Accompanying Notes Are An Integral Part of these Financial
Statements
F-
12
Zyrox Mining International, Inc.
STATEMENT OF CASH FLOWS
For the three months ended August 31,
2012
OPERATING ACTIVITIES
Net loss
$
(79,156
)
Loan from shareholder
86,406
Cash at beginning of period
170
Cash at end of period
$
7,420
The Accompanying Notes Are An Integral Part of these
Financial Statements
F-
13
Zyrox
Mining International, Inc.
STATEMENT OF STOCKHOLDERS EQUITY
For the three months ended August 31,
2012
Number
Stated
Additional
Stockholders'
of Shares
Value
Paid-in Capital
Equity
Balance – May 31, 2012
102,239,055
$
103,094
$
96,136,861
$
96,232,830
Retained earnings decrease
(79,156
)
Balance – August 31, 2012
102,239,055
$
103,094
$
96,153,674
The Accompanying Notes Are An Integral Part of these Financial
Statements
F-
14
Zyrox Mining International, Inc.
Notes
to Financial Statements
August 31, 2012
NOTE A – NATURE OF ACTIVITIES AND ORGANIZATION
Zyrox Mining International, Inc. (The Company) common
stock trades on the over-the-counter ("OTC") market and is currently quoted on the OTC Markets Group Quotation Service
and on other financial websites under the symbol "ZYRX". The Company began trading as Riverdale Capital Ltd. under
the symbol "RICP" on June 3, 2009. On April 30, 2012, he Company changed its name to Diversified Energy & Fuel
International, Inc. Effective August 15, 2012 the Company changed its name to Zyrox Mining International, Inc. and its symbol to
ZYRX.
On September 3, 2009, RICP acquired
Internet Properties Group ("IPG)") for 6,430,000 common shares. As a result of the acquisition of IPG, Philip T. Kueber
became the controlling shareholder of the Company, holding 44% of the Common Shares outstanding and 100% of the Preferred Shares
outstanding. On September 30, 2009, this transaction was reversed. As a result of the above situation, the former President/Sole
Director, Philip T. Kueber, resigned from his positions and transferred his interests in the Company for $250,000 he personally
owed to the current President, resulting in a change of control.
On September 8, 2010, FINRA approved
a 1:10,000 reverse split effective September 9, 2010. All financial statements have been adjusted to reflect the reverse.
The Company finalized the acquisition
of a biodegradable plastic manufacturer, WSPVA, Bio Products International, LLC, a Nevada LLC, on March 12, 2012 for 102,238,200
common shares, of which 98,984,744 had been issued to WSPVA shareholders in the prior fiscal year and recorded as Issuance of Common
Shares for Donated Services because of the uncertainty of completing the transaction. The Company now owns 100% of the equity interests
of this wholly owned subsidiary. With the transaction completed, the market value of the shares issued on March 12, 2012 was recorded
as the purchase price for WSPVA.
The Company fiscal year end is May 31.
The Company has not been in bankruptcy, receivership
or any similar proceeding, and continues to review merger-acquisitions as part of its ongoing business strategy.
The Company does not currently compensate officers
or directors who serve on the board of directors.
Management and administrative support:
Since
inception, the Company has received the majority of its managerial services and administrative support at no cost from management
and shareholders of the Company.
F-
15
NOTE B – SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES
The Company prepares its financial
statements in accordance with generally accepted accounting principles in the United States. In the opinion of management, all
adjustments have been made to present fairly the financial statements of the Company. This basis of accounting involves the application
of accrual accounting and consequently, revenues and gains are recognized when earned, and expenses and losses are recognized when
incurred.
The financial statements are expressed in
U.S. funds.
NOTE C – CASH EQUIVALENTS
Cash equivalents include financial instruments with
an original maturity of three months or less. The Company may maintain cash and cash equivalent deposits in excess of federally
insured limits at certain financial institutions.
NOTE D – USE OF ESTIMATES
The preparation of financial statements in conformity
with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements,
and the reported amounts of revenues and expenses during the reporting period. The financial statements include estimates based
on currently available information and management's judgment as to the outcome of future conditions and circumstances.
Changes in the status of certain facts or circumstances
could result in material changes to the estimates used in the preparation of financial statements and actual results could differ
from the estimates and assumptions.
NOTE
E – REVENUE RECOGNITION
The
carrying amounts of share subscriptions receivable approximate their fair values because of the short-term nature of these instruments.
Common shares are valued at the lower of cost or market value.
F-
16
NOTE F – FAIR VALUE OF FINANCIAL
INSTRUMENTS
The carrying amounts of share subscriptions receivable
approximate their fair values because of the short-term nature of these instruments. Common shares are valued at the lower of cost
or market value.
NOTE
G – IMPAIRMENT OF LONG-LIVED ASSETS
Long-lived assets held and used by the Company are
reviewed for possible impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be
recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the assets to the
estimated undiscounted cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment
to be recognized is measured by the amount by which the carrying amount of the asset exceeds the fair value thereof.
In December 2004, the Financial Accounting Standards
Board ("FASB") issued Statement No. 153 (SFAS 153), Exchanges of Nonmonetary Assets—an amendment of APB Opinion
No. 29. The guidance in APB Opinion No. 29, Accounting for Nonmonetary Transactions, is based on the principle that exchanges of
nonmonetary assets should be measured based on the fair value of the assets exchanged. The guidance in that Opinion, however, included
certain exceptions to that principle. This Statement amends Opinion 29 to eliminate the exception for nonmonetary exchanges of
similar productive assets and replaces it with a general exception for exchanges of nonmonetary assets that do not have commercial
substance. A nonmonetary exchange has commercial substance if the future cash flows of the entity are expected to change significantly
as a result of the exchange. The provisions of this Statement shall be effective for nonmonetary asset exchanges occurring in fiscal
periods beginning after September 15, 2006. The adoption of SFAS 153 did not have a material impact on the results of operations.
In June 2009, the Financial Accounting
Standards Board ("FASB") issued "The FASB Accounting Standards Codification and the Hierarchy of Generally
Accepted Accounting Principles", which establishes the FASB Accounting Standards Codification (" FASB ASC")
as the source of authoritative accounting principles recognized by the FASB to be applied in preparation of financial
statements in conformity with accounting principles generally accepted in the United States of America (GAAP). The ASC is
effective for financial statements issued for interim and annual periods ending after September 15, 2009. The Codification
does not change or alter existing GAAP. The implementation had no impact to the Company's financial position or results
of operations.
NOTE H – COMPREHENSIVE INCOME
FASB ASC 220-10-20: Comprehensive Income
establishes standards for the reporting and disclosure of comprehensive income and its components, which will be presented in
association with a company's financial statements. Comprehensive income is defined as the change in a business enterprise's
equity during a period arising from transactions, events or circumstances relating to non-owner sources, such foreign
currency translation adjustments and unrealized	gains or losses on available-for-sale securities. It includes all changes
in equity during a period except those resulting from investments by or distributions to owners.
F-
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NOTE
I – CAPITAL STOCK
Management
has developed a strategic plan to develop its management team and to increase its acquisition of synergistic properties. Management
anticipates generating
sufficient revenue to fund the operations of the Company during the next fiscal year and to acquire
an additional subsidiary.
NOTE J – CAPITAL STOCK
Common Shares Authorized – 3,000,000,000 common
shares of $.001 par value
Issued and Outstanding – 102 238,200 common
shares
Preferred Shares Authorized
- 100,000,000 Series "A"
- 100,000,000 Series "B"
- 100,000,000 Series "C"
Issued and Outstanding
- 855,000 preferred shares Series "A"
NOTE K – CONTINGENCIES
The Company may from time to time be subject to legal
proceedings and claims that may arise in the ordinary course of its business. There are no legal matters pending at the present
date.
NOTE L – SUBSEQUENT EVENTS
Management is currently in negotiations with Zyrox
Mining Co., Ltd., a British Columbia mining operation and has signed a Memorandum of Understanding with the Zyrox shareholders.
Discussions with a local Venture Capital firm are being finalized to obtain the necessary capital to close the transaction and
to expand the current operation.
The Company has engaged an attorney to file an S-1
to achieve fully reporting status with the SEC. The Company aspires to be a fully reporting company by the end of 4th quarter 2012.
NOTE M – CERTIFICATION INFORMATION
AND DISCLOSURE STATEMENT
All information furnished herein has been prepared
from the books and records obtain from Zyrox Mining International, Inc. in accordance with rule 15c2-11 (a)(5) promulgated under
the Securities and Exchange Act of 1934, as amended, and is intended as information to be used by the public.
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No dealer, salesman or any other person has been authorized
to give any information or to make any representations not contained herein in connection with the Company. Any representations
not contained herein must not be relied upon as having been made or authorized by the Company.
NOTE N - CAUTIONARY STATEMENT FOR PURPOSES OF THE
"SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT
Any statements in this report that
are not historical facts are intended to fall within the safe harbor for forward-looking statements provided by the Private Securities
Litigation Reform Act of 1995. These statements may be identified by such forward-looking terminology as "expect",
"look", "believe", and "anticipate", "may", "will", or similar statements
or variations of such terms. Any forward-looking statements should be considered in light of the risks and uncertainties associated
with Zyrox Mining International, Inc. and its businesses, economic and market conditions prevailing from time to time, and the
application and interpretation of Federal and state tax laws and regulations, all of which are subject to material changes and
which may cause actual results to vary materially from what had been anticipated. Certain factors that could affect Zyrox Mining
International, Inc. include conditions affecting revenues, reliance on key personnel, competition, and regulatory and legal matters.
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DEALER PROSPECTUS DELIVERY OBLIGATION
"UNTIL
___________________________
,
ALL DEALERS THAT EFFECT TRANSACTIONS IN THESE SECURITIES, WHETHER OR NOT PARTICIPATING IN THIS OFFERING, MAY BE REQUIRED TO DELIVER
A PROSPECTUS. THIS IS IN ADDITION TO THE DEALERS' OBLIGATION TO DELIVER A PROSPECTUS WHEN ACTING AS UNDERWRITERS AND WITH
RESPECT TO THEIR UNSOLD ALLOTMENTS OR SUBSCRIPTIONS."
PART II – INFORMATION NOT REQUIRED
IN PROSPECTUS
ITEM 13. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION
The following table sets forth the costs
and expenses payable by Zyrox Mining International, Inc. in connection with registering the sale of the common stock. Zyrox Mining
International, Inc. has agreed to pay all costs and expenses in connection with this offering of common stock. Set for the below
is the estimated expenses of issuance and distribution, assuming the maximum proceeds are raised.
Legal and Professional Fees
$
14,000
Accounting Fees
$
10,000
Audit Fees
$
3,000
Total
$
27,000
ITEM 14. INDEMNIFICATION OF DIRECTORS
AND OFFICERS
As permitted by the Nevada General Corporation Law, we have
adopted provisions in our by-laws to be in effect that limits or eliminates the personal liability of our directors. Consequently,
a director will not be personally liable to us, or our stockholders, for monetary damages or breach of fiduciary duty as a director,
except for liability for:
●    any breach of
the director's duty of loyalty to us or our stockholders;
●    any act or omission
not in good faith or that involves intentional misconduct or a knowing violation of law;
●    any unlawful
payments related to dividends or unlawful stock repurchases, redemptions or other distributions; or
●    any transaction
from which the director derived an improper personal benefit.
These limitations of liability do not alter
director liability under the federal securities laws and do not affect the availability of equitable remedies such as an injunction
or rescission.
In addition, our by-laws provide that:
●    we will indemnify
our directors, officers and, in the discretion of our board of directors, certain employees to the fullest extent permitted by
the Nevada General Corporation Law; and
●    we will advance
expenses, including attorneys' fees, to our directors and, in the discretion of our board of directors, to our officers and certain
employees, in connection with legal proceedings, subject to limited exceptions.
We intend to obtain and thereafter
maintain general liability insurance that covers certain liabilities of our directors and officers arising out of claims based
on acts or omissions in their capacities as directors or officers, including liabilities under the Securities Act of 1933, as amended.
Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers, or persons
controlling the Company pursuant to the foregoing provisions, we have been informed that in the opinion of the Securities and Exchange
Commission such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable.
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These provisions may discourage stockholders
from bringing a lawsuit against our directors for breach of their fiduciary duty. These provisions may also have the effect of
reducing the likelihood of derivative litigation against directors and officers, even though such an action, if successful, might
otherwise benefit our stockholders and us. Furthermore, a stockholder's investment may be adversely affected to the extent we pay
the costs of settlement and damage awards against directors and officers pursuant to these indemnification provisions. We believe
that these provisions, the indemnification agreements and the insurance are necessary to attract and retain talented and experienced
directors and officers.
At present, there is no pending litigation
or proceeding involving any of our directors or officers where indemnification will be required or permitted. We are not aware
of any threatened litigation or proceedings that might result in a claim for such indemnification.
ITEM 15. RECENT SALES OF UNREGISTERED SECURITIES
6,430,000 common shares were
issued on September 3, 2009 to Phillip Kueber for the acquisition of Internet Properties Group Inc.
960,000,000 common shares were
issued on December 23, 2009 for a proposed capital raise (400,000,000 to Phillip Kueber, 400,000,000 to Debbie Smith, 80,000,000
to Qualstar Capital Group and 80,000,000 to Fordee CA Trust).
1,600,000,000 shares were issued
half to Phil Kueber and half to Debbie Smith on December 28, 2009 for a $75,000 debt repayment.
200,000,000 shares were issued
to Qualstar Capital Corp. and 200,000,000 to Fordee CA Trust on May 18, 2010 for an acquisition and a proposed capital raise.
All of the above shares were
reversed 1:10,000 on September 8, 2010.
98,482,000 common shares were
issued to 26 former WVSPA investors and 3,756,000 shares to others to acquire WVSPA Bio Products International LLC by May 12, 2012.
ITEM 16. EXHIBITS.
The following exhibits are included with this registration statement:
Exhibit Number.
Name/Identification of Exhibit
3.1
Articles of Incorporation
3.2
Amended Articles of Incorporation
3.3
Bylaws
5
Opinion of Joseph L. Pittera, Esq.
23.1
Consent of Independent Auditor
23.2
Consent of Counsel (See Exhibit 5)
99.1
Subscription Agreement
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ITEM 17. UNDERTAKINGS
Under Rule 415 of the Securities Act, we
are registering securities for an offering to be made on a continuous or delayed basis in the future. The registration statement
pertains only to securities (a) the offering of which will be commenced promptly, will be made on a continuous basis and may continue
for a period in excess of 30 days from the date of initial effectiveness and (b) are registered in an amount which, at the time
the registration statement becomes effective, is reasonably expected to be offered and sold within two years from the initial effective
date of the registration.
Based on the above-referenced facts and
in compliance with the above-referenced rules, Zyrox Mining International, Inc. includes the following undertakings in this Registration
Statement:
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, as amended;
(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 SEC pursuant to Rule 424(b) if, in the aggregate, the changes in
the volume and price represent no more than a 20% change in the maximum aggregate offering price set forth in the "Calculation
of the Registration Fee" table in the effective Registration Statement; and
(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.
(1) That, for the purpose of determining
any liability under the Securities Act of 1933, as amended, 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.
(2) 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.
B. Insofar as indemnification for liabilities
arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the Registrant, 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 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 Act and will be governed by the final adjudication of such issue.
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SIGNATURES
In accordance with 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
of filing on Form S-1 and authorized this Registration Statement to be signed on its behalf by the undersigned, in the City of
Miami, State of Florida on September 20, 2012.
Zyrox Mining International, Inc.
(Registrant)
By:
/s/Carl Kruse
President, Secretary and Director
In accordance with the requirements of
the Securities Act of 1933, this Registration Statement was signed by the following persons in the capacities and on the dates
stated:
Signature
Title
Date
/s/ Carl Kruse
President, Secretary and Director
September 20, 2012
/s/ Aslam Halim
Executive Vice President, and Director
September 20, 2012
/s/ Carl Kruse Velazquez
Treasurer and Director
September 20, 2012
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