Opinion by Independent Auditors

OPINION BY INDEPENDENT AUDITORS

Puerto Vallarta, Jal., on February 27 of 2014

To the

PEACE Punta de Mita, A.C.

Members

1. We have audited the enclosed financial statements pertaining to PEACE Punta de Mita, A.C., which include the financial position statement up to December 31 of 2013, the statement of activities and that of cash flow corresponding to the ten-months period ended on that date, and also a summary of the significant accounting policies and other explanatory information.

Management’s responsibility regarding the financial statements

The management is responsible for the true preparation and presentation of the enclosed financial statements as per the Financial Information Rules, and of internal control which the management deems necessary to allow the prepping of financial statements free of material inaccuracy, due to fraud or error.

Auditor’s responsibility

Our responsibility is to express an opinion about the enclosed financial statements based on our audit. We have carried out our audit as per International Audit Rules. Such rules demand that we meet the requirements of ethics, and also that we plan and execute the audit with the purpose of obtaining reasonable security on whether the financial statements are free of material inaccuracy.

The audit carries the use of procedures to obtain audited evidence on the amounts and the information revealed within the financial statements. The procedures chosen are left to the auditor’s judgment, including the valuation of the material inaccuracy risks at the financial statements, due to fraud or error. While carrying out such risk valuations, the auditor takes into consideration the relevant internal control for the true preparation and presentation by the entity of the financial statements, with the purpose of designing the procedures of the audit adequate to the circumstances, and not with the purpose of expressing an opinion on the efficaciousness of the entity’s internal control. An audit also includes the evaluation of the adequateness of the accounting policies used and the reasonability of the accounting estimates performed by the management, as well as the evaluation of the global presentation of the financial statements.

We believe the audit evidence obtained provides sufficient and adequate base to our audit opinion.

1. In our opinion, the financial statements truly convey, in all material aspects, the PEACE Punta de Mita, A.C. financial situation up to December 31 of 2013, as well as the result of its activities and cash flows corresponding to a period of ten months, ending on the mentioned date, as per Financial Information Rules.

PBR Consultores y Asesores, S.C.

C.P.C. Jose Becerra Mejia

PEACE PUNTA DE MITA, A.C.

FINANCIAL STATEMENTS

UP TO DECEMBER 31 OF 2013

INDEX

ContentsPage

Opinion by independent auditors1-2

Financial Statements:

General Balance3

Statement of Activities4

Statement of Cash Flow5

Notes to the financial statements6-12

PEACE PUNTA DE MITA, A.C.

NOTES TO THE FINANCIAL STATEMENTS

DECEMBER 31 OF 2013

(Numbers expressed in Mexican Currency)

NOTE 1 – ASSOCIATION’S ORGANIZATION AND ACTIVITY

PEACE Punta de Mita, A.C. (“The Association”) is a non-profit Civil Association organized under Mexican law on March 19 of 2013, and with duration of 99 years.

The Association’s main activity is the promotion for the individual’s integral formation, education, charity and aide towards the development of the community in the Bahia de Banderas, Nayarit region.

The herein attached financial statements up to December 31 of 2013 have been prepared in abidance with Mexican Financial Information Rules (NIF) issued by the independent organism ConsejoMexicano de Normas de InformaciónFinanciera, A.C. (Mexican Board of Financial Information Rules), with the purpose of showing a reasonable representation of the Association’s financial situation.

The financial statements up to December 31 of 2013 were authorized for their issuance on February 26 of 2014, by C. Maria Cecilia Paredes Aguirre, legal representative of the Association, who has legal powers of attorney to authorize the financial statements and their notes; such financial statements are subject to the approval of the H. Board of Directors.

To the effect of the Income Tax, the Association is authorized to receive deductible donations in national territory as per official letter number 600-04-02-2013-16054, File 22289, Folio 93921 dated October 23 of 2013, issued by the Servicio de AdministracionTributaria (Treasury Administration Service).

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The NIFs call for the use of certain accounting estimates at the preparation of the financial statements. Furthermore, the exercise of a certain judgment from the Administration is required at the process of definition of the company’s accounting policies.

Following a summary of the most significant accounting policies, which have been consistently used within the year presented, unless otherwise specified:

1. Effects of inflation –

As of year 2008 the NIF B-10 outlines “Effects of Inflation” came into effect, which establish that in a non-inflationary environment wherein accumulated inflation during the past three years is less than 26%, the entity must not acknowledge in its financial statements the effects of inflations.

In the last three years, the accumulated inflation has not been above 26%, whereat annual inflation in 2013 was of 3.97%, thus this is considered as a non-inflationary economy.

The Association’s Administration chose as of its organization not to adopt within its accounting policies the recognition of the effects of inflation at their financial information due to the fact that it deems that they do not substantially affect the financial information, as a consequence, the numbers shown in the enclosed financial statements up to December 31 of 2013 are presented in historical Mexican Pesos.

1. Cash –

This mainly consists of bank deposits into check accounts, owned by the Association with immediate availability to be used at the several programs, expressed at face value.

1. Operations in Foreign Currency –

The operations in foreign currency are registered in Mexican currency at the exchange rate valid on the date of the execution. The money assets and liabilities in foreign currency are valued in Mexican currency at the exchange rate valid on the date of the financial statements, the differences accrued by exchange fluctuations between the dates of contracting of the transactions and their settlement or valuation at the closing of the exercise are registered within the statement of activities inside the financing integral outcome.

1. Provisions -

Provisions for liabilities represent current obligations for past events at which probable is the exit of financial resources and a probable maturity. These provisions have been registered under the best estimate made by the Administration.

1. Equity -

Equity book value is classified as per the restriction which the donors established over the donated assets. On the date of these financial statements there is no restriction whatsoever.

1. Donations -

Donations are income that increase the equity book value when contributions in cash are received, assets or liabilities are cancelled.

1. Risk Management -

The Association receives donations from several donors, thus the Administration considers there is no risk of concentration of obtainment of funds.

1. Income Tax –

Pursuant to fiscal provisions in force, the Association is considered as a non-taxpayer as per the Income Tax Law in force, thus the tax accrued is determined as per such legislation.

NOTE 3 – POSITION IN FOREIGN CURRENCY

Up to December 31 of 2013, the Association had money assets in foreign currency as follows:

NOTE 4 – NEW ACCOUNTING PRONOUNCEMENTS

The CINIF issued, during December of 2013, a series of NIFs which became effective on January 1 of 2014; it is considered that the NIF changes will not substantially affect the financial information presented by the Association due to the characteristics of the same with regard to the issued norms.

C.P.C. Gabriela Alicia Rojas Jiménez C. Maria Cecilia Paredes Aguirre

Accountant General Legal Representative

~ 1 ~