Future sales of common stock or warrants, or the prospect of future sales, may depress our stock price.

Sales of a substantial number of shares of common stock or warrants, or the perception that sales could occur, could adversely affect the market price of our common stock. Additionally, as of December 15, 2013, there were outstanding options to purchase up to 18,325,250 shares of our common stock that are currently exercisable and additional outstanding options to purchase up to 5,407,500 shares of common stock that are exercisable over the next several years. As of December 15, 2013, there were outstanding warrants to purchase 42,478,568 shares of our stock. The holders of these options and warrants have an opportunity to profit from a rise in the market price of our common stock with a resulting dilution in the interests of the other shareholders. The existence of these options may adversely affect the terms on which we may be able to obtain additional financing. The weighted average exercise price of issued and outstanding options is CA$0.397 and the weighted average exercise price of warrants is CA$0.48, which compares to the CA$0.54 (US$0.51) market price at closing on December 15, 2013.

Dilution through exercise of share options could adversely affect the Company’s shareholders.

Because the success of the Company is highly dependent upon its employees, the Company has granted to some or all of its key employees, directors and consultants options to purchase common shares as non-cash incentives. To the extent that significant numbers of such options may be granted and exercised, the interests of the other stockholders of the Company may be diluted. As of December 15, 2013, there were 23,732,750 share purchase options outstanding with a weighted average exercise price of CA$0.40 and 42,478,568 share purchase warrants outstanding with a weighted average exercise price of CA$0.48. If all of these securities were exercised, an additional 66,211,318 common shares would become issued and outstanding. This represents an increase of 33.3% in the number of shares issued and outstanding and would result in significant dilution to current shareholders.