I take it these notes were the reason for all the

I take it these notes were the reason for all the shares being traded over the last 7 years.


On December 14, 2010, executed an agreement with Quixstone Investments, Inc. ("QII", providing for a $5,000,000 financing.
This financing is in the form of a convertible debenture with terms stipulating an interest rate of 9.4% and a loan repayment
term of 36 months from the date of execution of the agreement, by way of cash or through the conversion of shares of
Southridge stock. The repayment terms of the financing are amenable to the Company's property development schedule and to
future financings plans to retire the debt. The outstanding principal under the debentures has the option for the holder to convert
into common shares in the capital of the Company ("Common Shares" at a conversion price of $0.35 per share. The debentures
will be systematically converted into common shares at a conversion price of $0.35 in the event that the common shares trade at
not less than $0.55 per share for a minimum period of sixty (60) consecutive trading days. The proceeds from this financing
have been used for corporate purposes, including working capital and funding the acquisition of the Company's Cinco Minas
and Gran Cabrera Gold properties in Mexico. The entire funding has been completed for gross proceeds to the Company of
$4,575,000. As of August 31, 2012, the outstanding amount of the loan and accrued interest were $5,879,880 and $687,170,
respectively


Restricted -
On March 14, 2008, Rockridge Capital Holdings Corporation loaned the Company $1,500,000 to secure our contribution for
the “SBC Joint Venture”, with Briskul Transacção LTDA. The loan bears an interest at the rate of 14% per annum and is
secured by a Demand Promissory Note and/or can be converted into restricted common stock at any time. The principal amount
outstanding and accrued interest on this loan at August 31, 2012, was $0 and $57,360 respectively.



On November 4, 2011 and May 30, 2012, the Company entered a 3 year, 6% interest promissory notes with Novamex Mineral
S.A. for a share purchase and retirement for a total value of $3,750,000. The principal amount outstanding and accrued interest
on this loan at August 31, 2012, was $3,812,997 and $38,255 respectively



On March 12, 2012, the Company entered a 2 year, 7% interest promissory note with Duvernoi Capital Investments for
proceeds of $2,500,000 allocated to the Cinco Minas Mill Production Plan capital expenditures program. Duvernoi has the
option to participate in the future expansion of the mill's capacity to 500 tonnes per day. Also, on June 19, 2012, , the Company
entered a 32 month, 8.8% interest debenture with Duvernoi Capital Investments for proceeds of $3,500,000 allocated to the
roll-out of the El Horconcito mineral property exploration and development program. The principal amount outstanding and
accruedinterest on these financings at August 31, 2012, was $2,587,569 and $87,569 respectively