In 2014 CF receives restricted shares on a quarter

In 2014 CF receives restricted shares on a quarterly apportionment according .to SKTO OTC disclosure of Sept 30, 2013. In 2013, such shares as applying to 2014 were not yet issued, and therefore qualify for restricted status (i.e. 1-year holding period)  pursuant to settlement. See Section F.

SKTO OTC Pink Basic Disclosure
QUARTER ENDED SEPTEMBER 30, 2013

E.  The price at which the shares were offered, and the amount actually paid to the issuer;
As noted above, the shares issued during the second and third quarters of 2013 were
issued for acquisitions or note conversions, and were valued at the closing market price at
the time of the acquisition or conversion.

See B above for a description of the consideration for pending share issues.

F.  The trading status of the shares;
See above.
The share certificates for certificates not yet issued will be issued in restricted form as the issuance was pursuant to an exemption from registration.

Since the future market price of each  quarterly grant of shares to Crystal Falls and Lotus Capital is speculative, and the number of  shares to be issued at each quarterly date is dependent on the then total outstanding shares of the Company’s common stock, which is also unknown, any restricted stock to be issued to them in  the future will be valued at the closing market price of the common stock at the time of each quarterly installment due date and based on the total number of shares of the Company’s common stock then issued and outstanding.