UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

[X]	QUARTERLY REPORT UNDER TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED ~~DECEMBER~~JUNE 3130, ~~2012~~2013
OR
[ ]	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number 000-53697

CORONUS SOLAR INC.

(Exact name of registrant as specified in its charter)

British Columbia, Canada

(State or other jurisdiction of incorporation or organization)

1100-1200 West 73rd Avenue

Vancouver, British Columbia

Canada V6P 6G5

(Address of principal executive offices, including zip code.)

604-267-7078

(telephone number, including area code)

Indicate by check mark whether the issuer (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the last 90 days. YES [X] NO [ ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (SS 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). YES [ ] NO [X]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer, “accelerated filer,” “non-accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large Accelerated Filer	[ ]	Accelerated Filer	[ ]
Non-accelerated Filer	[ ]	Smaller Reporting Company	[X]
(Do not check if smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES [ ] NO [X]

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 17,219,486 as of ~~February~~August 1416, 2013.

Table of Contents

TABLE OF CONTENTS

			Page
PART I.
Item 1.	Financial Statements.		3
	Financial Statements:
		Consolidated Balance Sheets	3
		Consolidated Statements of Operations and Comprehensive Loss	4
		Consolidated Statements of Stockholders’ Equity (Deficiency)	5
		Consolidated Statements of Cash Flows	76
		Notes to Consolidated Financial Statements	87
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.		39
Item 3.	Quantitative and Qualitative Disclosures About Market Risk.		54
Item 4.	Controls and Procedures.		54
PART II.
Item 1A.	Risk Factors.		54
Item 6.	Exhibits.		55
Signatures			61
Exhibit Index			62

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Table of Contents

PART I.

ITEM 1. FINANCIAL STATEMENTS.

CORONUS SOLAR INC. (A Development Stage Enterprise) CONSOLIDATED BALANCE SHEETS (Expressed in US Dollars) (Unaudited)

(A Development Stage Enterprise)

			June 30,		March 31,
			2013		2013

ASSETS
CURRENT
	Cash and cash equivalents	$	95,312	$	284,989
	Other receivables		4,120		34,529
	Prepaid expenses and deposits (Note 7)		1,838		27,666
	Assets held for sales (Note 8)		4,314,917		-

TOTAL CURRENT ASSETS			4,416,187		347,184

PREPAID EXPENSES AND DEPOSITS			-		564,150

PROPERTY, PLANT AND EQUIPMENT (Note 9)			33,330		127,002

PROJECT ASSETS			-		3,477,920


TOTAL ASSETS		$	4,449,517	$	4,516,256


LIABILITIES
CURRENT
	Accounts payable and accrued liabilities (Note 14)	$	66,750	$	72,725
	Senior secured promissory note		-		2,902,100
	Notes payable		-		232,084
	Liabilities held for sales (Note 11)		4,085,420		-

TOTAL CURRENT LIABILITIES			4,152,170		3,206,909

NOTES PAYABLE LONG TERM			-		579,014

TOTAL LIABILITIES			4,152,170		3,785,923

STOCKHOLDERS' EQUITY
SHARE CAPITAL (Note 12)

	Authorized: Unlimited voting common shares without par value Issued and outstanding: 17,219,486 common shares (March 31, 2013: 17,219,486)		1,548,492		1,548,492

ADDITIONAL PAID IN CAPITAL			598,534		598,534

ACCUMULATED OTHER COMPREHENSIVE LOSS			(31,964)		(28,035)

DEFICIT, accumulated during the development stage			(1,817,715)		(1,388,658)

TOTAL STOCKHOLDERS' EQUITY			297,347		730,333

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$	4,449,517	$	4,516,256

COMMITMENTS (Note 15)
GOING CONCERN (Note 2)

~~CONSOLIDATED~~(See ~~BALANCE~~accompanying ~~SHEETS~~notes to the consolidated financial statements)

(Expressed in US Dollars)

(Unaudited)

		December 31,		March 31,
		2012		2012
ASSETS
CURRENT
Cash and cash equivalents	$	426,679	$	327
Other receivables		8,337		900
Prepaid expenses and deposits (Note 19(c), (d), (e), (f) & (h))		1,285,840		42,149
Assets held for sale (Note 10)		-		40,161
TOTAL CURRENT ASSETS		1,720,856		83,537
CONSTRUCTION IN PROGRESS (Note 8)		658,440		6,584,400
PROPERTY, PLANT AND EQUIPMENT (Note 7)		1,348,809		334,789
INTANGIBLE ASSET (Note 9)		-		4,180
TOTAL ASSETS	$	3,728,105	$	7,006,906
LIABILITIES
CURRENT
Accounts payable and accrued liabilities (Note 18)	$	28,819	$	144,656
Loan from a shareholder (Note 11)		-		243,288
Convertible notes payable (Note 14)		-		15,198
Senior secured promissory note (Note 15)		1,429,707		-
Notes payable (Note 12)		69,184		37,100
Liabilities held for sale		-		33,475
TOTAL CURRENT LIABILITIES		1,527,710		473,717
NOTES PAYABLE (Note 12)		541,914		202,084
TOTAL LIABILITIES		2,069,624		675,801
STOCKHOLDERS’ EQUITY
SHARE CAPITAL (Note 15)
Authorized:
Unlimited voting common shares without par value
Issued and outstanding:
17,219,486 common shares (March 31, 2012: 27,096,086)		1,548,492		7,474,452
ADDITIONAL PAID IN CAPITAL		598,534		598,534
ACCUMULATED OTHER COMPREHENSIVE LOSS		(27,624)		(26,232)
DEFICIT, accumulated during the development stage		(460,921)		(1,715,649)
TOTAL STOCKHOLDERS’ EQUITY		1,658,481		6,331,105
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	3,728,105	$	7,006,906
CONTINGENT LIABILITIES (Note 16)
GOING CONCERN (Note 2)

(See accompanying notes to the financial statements)

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Table of Contents

CORONUS SOLAR INC. (A Development Stage Enterprise) CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Expressed in U.S. Dollars) (Unaudited)

(A Development Stage Enterprise)

							Cumulative from
			Three months ended June 30,				inception (December 3, 2001) to
			2013		2012		June 30, 2013

REVENUE		$	-	$	-	$	1,751

EXPENSES
	Amortization - tangible and intangible assets		8		1,803		57,377
	Amortization - financing costs on promissory note		100,003		-		162,125
	Consulting fees		148,147		-		265,668
	Interest on shareholder loan		-		430		28,306
	Interest and bank charges		51,632		7,207		129,105
	Office and miscellaneous		24,124		14,337		188,324
	Professional fees		47,817		30,254		481,912
	Repairs and maintenance		-		-		869
	Salaries and wages (Note 14)		24,571		24,892		593,108
	Stock based compensation		-		-		492,309
	Telephone and utilities		404		187		13,593
	Advertising and promotion		-		344		9,124
	Travel		6,692		-		17,869
	Feasibility study		24,033		43,300		306,474
	Foreign exchange loss (gain)		(2,449)		7,513		11,845
	Write-down of land deposits		-		-		23,888
	Write down in website development costs		-		-		17,390
	Write-off CIP		-		-		658,440
	Write-off trademark cost		-		-		279
	Write-off on discount of convertible notes		-		80,237		86,923

			424,982		210,504		3,544,928

OTHER ITEMS
	Interest income		75		-		196
	Debt forgiven		-		-		13,192
	Gain on sale of assets (Note 10)		-		808,994		1,717,024
	Other income		850		-		850
	Other expenses		-		-		(800)

			925		808,994		1,730,462

INCOME (LOSS) BEFORE INCOME TAXES			(424,057)		598,490		(1,812,715)

	Income Taxes		5,000		-		5,000

INCOME (LOSS) FOR THE PERIOD			(429,057)		598,490		(1,817,715)

OTHER COMPREHESIVE INCOME (LOSS) FOR THE PERIOD
Exchange difference on translation			(3,929)		1,813		(31,964)

COMPREHENSIVE INCOME (LOSS) FOR THE PERIOD		$	(432,986)	$	600,303	$	(1,849,679)

Profit (loss) per share - Basic (Note 6)		$	(0.02)	$	0.02

Weighted average number of common shares outstanding - basic			17,219,486		27,096,086

Profit (loss) per share - Diluted (Note 6)		$	(0.02)	$	0.02

Weighted average number of common shares outstanding - diluted			17,219,486		27,921,403

~~CONSOLIDATED~~(See ~~STATEMENTS~~accompanying OFnotes ~~OPERATIONS~~to ~~AND~~the ~~COMPREHENSIVE~~consolidated ~~LOSS~~financial statements)

(Expressed in U.S. Dollars)

(Unaudited)

										Cumulative from
		Three months ended				Nine months ended				Inception
		December 31,				December 31,				(December 3, 2001) to
		2012		2011		2012		2011		December 31, 2012
REVENUE	$	-	$	-	$	-	$	-	$	1,751
EXPENSES
Amortization - tangible and intangible assets		607		1,805		4,211		5,416		57,358
Financing costs on promissory note		3,228		-		3,228		-		3,228
Consulting fees		28,700		-		28,700		-		49,628
Interest on shareholder loan		5		2,227		435		6,778		28,308
Interest and bank charges		2,893		4,626		11,947		10,296		44,801
Office and miscellaneous		15,487		7,931		41,552		39,370		148,242
Professional fees		14,161		13,898		63,629		54,763		413,028
Repairs and maintenance		-		-		-		-		869
Salaries and wages (Note 18)		24,218		23,588		74,400		62,604		543,614
Stock based compensation		-		-		-		-		492,309
Telephone and utilities		58		207		251		628		12,628
Advertising and promotion		(402)		-		-		143		9,124
Travel		1,224		971		1,224		993		4,380
Feasibility study		27,250		33,065		143,407		74,798		260,277
Foreign exchange loss		(216)		110		8,241		2,858		13,975
Write-down of land deposits		-		-		-		3,210		11,610
Write down in website development costs		-		-		-		-		17,390
Write-off trademark cost		-		-		-		-		279
Write-off on discount of convertible notes		919		-		81,156		-		81,156
		118,132		88,428		462,381		261,857		2,192,204
OTHER ITEMS
Interest income		0		-		85		-		116
Debt forgiven		-		-		-		-		13,192
Gain on sale of assets		-		-		1,717,024		-		1,717,024
Others		-		-		-		-		(800)
		0		-		1,717,109		-		1,729,532
NET INCOME (LOSS) FOR THE PERIOD		(118,132)		(88,428)		1,254,728		(261,857)		(460,921)
Other comprehensive income (loss) for the period
Exchange difference on translation		101		(6,779)		(1,392)		7,544		(27,624)
COMPREHENSIVE INCOME (LOSS) FOR THE PERIOD	$	(118,031)	$	(95,207)	$	1,253,336	$	(254,313)	$	(488,545)
Profit (loss) per share - Basic (Note 6)	$	(0.01)	$	(0.00)	$	0.06	$	(0.01)
Weighted average number of common shares outstanding - basic		17,219,486		27,091,836		22,103,914		27,033,715
Profit (loss) per share - Diluted (Note 6)	$	(0.01)	$	(0.00)	$	0.05	$	(0.01)
Weighted average number of common shares outstanding - diluted		17,219,486		27,091,836		22,929,230		27,033,715

(See accompanying notes to the financial statements)

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Table of Contents

CORONUS SOLAR INC. (A Development Stage Company) CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY December 3, 2001 (inception) to June 30, 2013 (Expressed in U.S. Dollars)

(A Development Stage Company)

					ACCUMULATED	DEFICIT
					OTHER	ACCUMULATED
				ADDITIONAL	COMPREHENSIVE	DURING	TOTAL
		COMMON		PAID-IN	INCOME	DEVELOPMNET	STOCKHOLDERS'
		SHARES	AMOUNT	CAPITAL	(LOSS)	STAGE	EQUITY

Stock issued for service at $0.0525 per share
on December 5, 2001		75,000	3,931	-	-	-	3,931
Stock issued for cash at $0.0002 per share
on December 5, 2001, revalued at $0.0525 per share		6,750,000	353,767	-	-	-	353,767
Stock issued for cash at $0.0525 per share
on December 5, 2001		300,000	15,722	-	-	-	15,722
Stock-based compensation on 75,000 options granted		-	-	6,026	-	-	6,026
Comprehensive income (loss):
	Currency translation adjustment	-	-	-	(9)	-	(9)
	(Loss) for the period	-	-	-	-	(376,277)	(376,277)

Balance, March 31, 2002		7,125,000	373,420	6,026	(9)	(376,277)	3,160

Stock issued for cash at $0.055 per share
on April 5, 2002		235,294	12,916	-	-	-	12,916
Stock issued for cash at $0.0725 per share
on June 18, 2002		88,890	6,458	-	-	-	6,458
Exericse of warrants at $0.055 per share
on August 15, 2002		235,294	12,916	-	-	-	12,916
Stock issued for cash at $0.0725 per share
on December 16, 2002		44,444	3,229	-	-	-	3,229
on January 10, 2003		44,446	3,229	-	-	-	3,229
on January 21, 2003		88,890	6,458	-	-	-	6,458
on March 7, 2003		205,690	14,944	-	-	-	14,944
on March 13, 2003		27,644	2,008	-	-	-	2,008
Stock issued for debt at $0.0725 per share
on January 15, 2003		22,222	1,615	-	-	-	1,615
Imputed interest from shareholder loan		-	-	340	-	-	340
Stock-based compensation on 25,000 options granted		-	-	1,957	-	-	1,957
Comprehensive income (loss):
	Currency translation adjustment	-	-	-	197	-	197
	(Loss) for the year	-	-	-	-	(67,360)	(67,360)

Balance, March 31, 2003		8,117,814	437,194	8,323	188	(443,637)	2,068

Stock issued for cash at $0.0835 per share
on April 2, 2003		88,890	7,403	-	-	-	7,403
on May 13, 2003		44,446	3,702	-	-	-	3,702
on May 21, 2003		44,446	3,702	-	-	-	3,702
on June 23, 2003		133,334	11,105	-	-	-	11,105
on August 1, 2003		44,444	3,702	-	-	-	3,702
on August 6, 2003		44,446	3,702	-	-	-	3,702
on October 24, 2003		50,000	4,164	-	-	-	4,164
on November 18, 2003		50,000	4,164	-	-	-	4,164
Stock issued for debt at $0.0835 per share
on April 15, 2003		22,222	1,851	-	-	-	1,851
on July 15, 2003		22,222	1,851	-	-	-	1,851
on October 15, 2003		22,222	1,851	-	-	-	1,851
Comprehensive income (loss):
	Currency translation adjustment	-	-	-	(265)	-	(265)
	(Loss) for the year	-	-	-	-	(63,056)	(63,056)

Balance, March 31, 2004		8,684,486	484,390	8,323	(77)	(506,693)	(14,057)

Stock issued for cash at $0.039 per share
on June 15, 2004		1,200,000	47,054	-	-	-	47,054
on June 30, 2004		400,000	15,685	-	-	-	15,685
on December 17, 2004		1,510,000	59,210	-	-	-	59,210
Forgiveness of debt by a director and shareholder		-	-	3,921	-	-	3,921
Comprehensive income (loss):
	Currency translation adjustment	-	-	-	(12,847)	-	(12,847)
	(Loss) for the year	-	-	-	-	(65,452)	(65,452)

Balance, March 31, 2005		11,794,486	606,339	12,244	(12,924)	(572,145)	33,514

Exericse of warrants at $0.042 per share
on July 28, 2005		200,000	8,385	-	-	-	8,385
on September 14, 2005		100,000	4,193	-	-	-	4,193
Stock issued for debt at $0.042 per share
on March 15, 2006		395,600	16,586	-	-	-	16,586
Forgiveness of debt by a director and shareholder		-	-	34,798	-	-	34,798
Imputed interest from shareholder loan		-	-	350	-	-	350
Stock-based compensation on 450,000 options granted		-	-	31,972	-	-	31,972
Comprehensive income (loss):
	Currency translation adjustment	-	-	-	1,059	-	1,059
	(Loss) for the year	-	-	-	-	(112,773)	(112,773)

Balance, March 31, 2006		12,490,086	635,502	79,364	(11,865)	(684,918)	18,083

Stock issued for cash at $0.044 per share
on November 24, 2006		600,000	26,369	-	-	-	26,369
on December 7, 2006		400,000	17,579	-	-	-	17,579
Forgiveness of debt by a director and shareholder		-	-	31,643	-	-	31,643
Imputed interest from shareholder loan		-	-	939	-	-	939
Stock-based compensation on 100,000 options granted		-	-	7,932	-	-	7,932
Comprehensive income (loss):
	Currency translation adjustment	-	-	-	(108)	-	(108)
	(Loss) for the year	-	-	-	-	(65,430)	(65,430)

Balance, March 31, 2007		13,490,086	679,450	119,877	(11,973)	(750,348)	37,006

Stock issued for debt at $0.0485 per share
on May 4, 2007		52,500	2,548	-	-	-	2,548
Forgiveness of debt by a director and shareholder		-	-	34,950	-	-	34,950
Imputed interest from shareholder loan		-	-	1,126	-	-	1,126
Stock-based compensation on 100,000 options granted		-	-	8,787	-	-	8,787
Comprehensive income (loss):
	Currency translation adjustment	-	-	-	4,447	-	4,447
	(Loss) for the year	-	-	-	-	(96,432)	(96,432)

Balance, March 31, 2008		13,542,586	681,999	164,740	(7,526)	(846,780)	(7,567)

Forgiveness of debt by a director and shareholder		-	-	31,932	-	-	31,932
Imputed interest from shareholder loan		-	-	2,228	-	-	2,228
Stock-based compensation		-	-	55,180	-	-	55,180
Comprehensive income (loss):
	Currency translation adjustment	-	-	-	10,232	-	10,232
	(Loss) for the year	-	-	-	-	(172,863)	(172,863)

Balance, March 31, 2009		13,542,586	681,999	254,080	2,706	(1,019,643)	(80,858)

Stock issued for acquisition of Coronus Energy Corp. on November 2, 2009		2,000,000	10,752	10,886	-	-	21,638
Forgiveness of debt by a director and shareholder		-	-	33,015	-	-	33,015
Imputed interest from shareholder loan		-	-	4,997	-	-	4,997
Stock-based compensation		-	-	26,144	-	-	26,144
Comprehensive income (loss):
	Currency translation adjustment	-	-	-	(25,943)	-	(25,943)
	(Loss) for the year	-	-	-	-	(155,180)	(155,180)

Balance, March 31, 2010		15,542,586	692,751	329,122	(23,237)	(1,174,823)	(176,187)

Stock issued for cash at $0.402 per share
on January 21, 2011 (net of share issuance cost)		212,500	70,693	-	-	-	70,693
Stock issued for construction of solar power plants on March 31, 2011		10,974,000	6,584,400	-	-	-	6,584,400
Forgiveness of debt by a director and shareholder		-	-	35,420	-	-	35,420
Comprehensive income (loss):
	Currency translation adjustment	-	-	-	(11,701)	-	(11,701)
	(Loss) for the year	-	-	-	-	(170,028)	(170,028)

Balance, March 31, 2011		26,729,086	7,347,844	364,542	(34,938)	(1,344,851)	6,332,597

Stock issued for cash at $0.624 per share
on May 10, 2011		350,000	120,838	90,628	-	-	211,466
Stock issued for cash at $0.598 per share
on October 24, 2011		17,000	5,770	4,501	-	-	10,271
Forgiveness of debt by a director and shareholder		-	-	38,165	-	-	38,165
Warrants and conversion beneficiary features		-	-	100,698	-	-	100,698
Comprehensive income (loss):
	Currency translation adjustment	-	-	-	8,706	-	8,706
	(Loss) for the year	-	-	-	-	(370,798)	(370,798)

Balance, March 31, 2012		27,096,086	7,474,452	598,534	(26,232)	(1,715,649)	6,331,105

Stock cancelled for amendment of agreement on August 15, 2012 (Note 10)		(9,876,600)	(5,925,960)	-	-	-	(5,925,960)
Forgiveness of debt by a director and shareholder
Comprehensive income:
	Currency translation adjustment	-	-	-	(1,803)	-	(1,803)
	Income for the year	-	-	-	-	326,991	326,991

Balance, March 31, 2013		17,219,486	1,548,492	598,534	(28,035)	(1,388,658)	730,333

Comprehensive income:
	Currency translation adjustment	-	-	-	(3,929)	-	(3,929)
	Income for the period	-	-	-	-	(429,057)	(429,057)

Balance, June 30, 2013 (Unaudited)		17,219,486	1,548,492	598,534	(31,964)	(1,817,715)	297,347

(See accompanying notes to the consolidated financial statements)

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

December 3, 2001 (inception) to December 31, 2012

(Expressed in U.S. Dollars)

				ACCUMULATED	DEFICIT
				OTHER	ACCUMULATED
			ADDITIONAL	COMPREHENSIVE	DURING	TOTAL
	COMMON		PAID-IN	INCOME	DEVELOPMENT	STOCKHOLDERS’
	SHARES	AMOUNT	CAPITAL	(LOSS)	STAGE	EQUITY
Stock issued for service at $0.0525 per share on December 5, 2001	75,000	3,931	-	-	-	3,931
Stock issued for cash at $0.0002 per share	6,750,000	353,767	-	-	-	353,767
Stock issued for cash at $0.0525 per share on December 5, 2001	300,000	15,722	-	-	-	15,722
Stock-based compensation on 75,000 options granted	-	-	6,026	-	-	6,026
Comprehensive income (loss):
Currency translation adjustment	-	-	-	(9)	-	(9)
(Loss) for the period	-	-	-	-	(376,277)	(376,277)
Balance, March 31, 2002	7,125,000	373,420	6,026	(9)	(376,277)	3,160
Stock issued for cash at $0.055 per share on April 5, 2002	235,294	12,916	-	-	-	12,916
Stock issued for cash at $0.0725 per share on June 18, 2002	88,890	6,458	-	-	-	6,458
Exercise of warrants at $0.055 per share on August 15, 2002	235,294	12,916	-	-	-	12,916
Stock issued for cash at $0.0725 per share
on December 16, 2002	44,444	3,229	-	-	-	3,229
on January 10, 2003	44,446	3,229	-	-	-	3,229
on January 21, 2003	88,890	6,458	-	-	-	6,458
on March 7, 2003	205,690	14,944	-	-	-	14,944
on March 13, 2003	27,644	2,008	-	-	-	2,008
Stock issued for debt at $0.0725 per share on January 15, 2003	22,222	1,615	-	-	-	1,615
Imputed interest from shareholder loan	-	-	340	-	-	340
Stock-based compensation on 25,000 options granted	-	-	1,957	-	-	1,957
Comprehensive income (loss):
Currency translation adjustment	-	-	-	197	-	197
(Loss) for the year	-	-	-	-	(67,360)	(67,360)
Balance, March 31, 2003	8,117,814	437,194	8,323	188	(443,637)	2,068
Stock issued for cash at $0.0835 per share
on April 2, 2003	88,890	7,403	-	-	-	7,403
on May 13, 2003	44,446	3,702	-	-	-	3,702
on May 21, 2003	44,446	3,702	-	-	-	3,702
on June 23, 2003	133,334	11,105	-	-	-	11,105
on August 1, 2003	44,444	3,702	-	-	-	3,702
on August 6, 2003	44,446	3,702	-	-	-	3,702
on October 24, 2003	50,000	4,164	-	-	-	4,164
on November 18, 2003	50,000	4,164	-	-	-	4,164
Stock issued for debt at $0.0835 per share
on April 15, 2003	22,222	1,851	-	-	-	1,851
on July 15, 2003	22,222	1,851	-	-	-	1,851
on October 15, 2003	22,222	1,851	-	-	-	1,851
Comprehensive income (loss):
Currency translation adjustment	-	-	-	(265)	-	(265)
(Loss) for the year	-	-	-	-	(63,056)	(63,056)
Balance, March 31, 2004	8,684,486	484,390	8,323	(77)	(506,693)	(14,057)
Stock issued for cash at $0.039 per share
on June 15, 2004	1,200,000	47,054	-	-	-	47,054
on June 30, 2004	400,000	15,685	-	-	-	15,685
on December 17, 2004	1,510,000	59,210	-	-	-	59,210
Forgiveness of debt by a director and shareholder	-	-	3,921	-	-	3,921
Comprehensive income (loss):
Currency translation adjustment	-	-	-	(12,847)	-	(12,847)
(Loss) for the year	-	-	-	-	(65,452)	(65,452)
Balance, March 31, 2005	11,794,486	606,339	12,244	(12,924)	(572,145)	33,514
Exercise of warrants at $0.042 per share
on July 28, 2005	200,000	8,385	-	-	-	8,385
on September 14, 2005	100,000	4,193	-	-	-	4,193
Stock issued for debt at $0.042 per share on March 15, 2006	395,600	16,586	-	-	-	16,586
Forgiveness of debt by a director and shareholder	-	-	34,798	-	-	34,798
Imputed interest from shareholder loan	-	-	350	-	-	350
Stock-based compensation on 450,000 options granted	-	-	31,972	-	-	31,972
Comprehensive income (loss):
Currency translation adjustment	-	-	-	1,059	-	1,059
(Loss) for the year	-	-	-	-	(112,773)	(112,773)
Balance, March 31, 2006	12,490,086	635,502	79,364	(11,865)	(684,918)	18,083

(See accompanying notes to the financial statements)

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Table of Contents

CORONUS SOLAR INC. (A Development Stage Enterprise) CONSOLIDATED STATEMENTS OF CASH FLOWS (Expressed in U.S. Dollars) (Unaudited)

(A Development Stage Company)

								Cumulative from
				Three months ended June 30,				inception (December 3, 2001) to
				2013		2012		June 30, 2013

OPERATING ACTIVITIES
	Net income (loss) from operations		$	(429,057)	$	598,489	$	(1,817,715)
	Adjustments to reconcile net loss to net cash used in operating activities:
		Amortization - tangible and intangible assets		8		1,803		57,377
		Amortization - financing costs on promissory note		100,003		-		180,509
		Foreign exchange gain/loss		-		-		(20,930)
		Forgiveness of debt		-		-		249,069
		Imputed interests		-		-		27,873
		Share issued for services / debts		-		-		26,301
		Stock based compensation		-		-		492,309
		Amortization on discount of convertible notes		-		86,157		102,121
		Gain on sale of assets		-		(808,994)		(1,717,024)
		Write-down of land deposits		-		-		12,278
		Write down of website development costs						17,390
		Write-off CIP		-		-		658,440
		Write-off trademark cost		-		-		279
	Changes in non-cash working capital:
		Other receivables		30,225		(3,596)		(3,184)
		Prepaid expenses and deposits		13,784		(53,797)		(612,213)
		Accounts payables and accrued liabilities		146,503		(38,717)		250,494

NET CASH USED IN OPERATING ACTIVITIES				(138,534)		(218,655)		(2,096,626)

INVESTING ACTIVITIES
	Property, plant and equipment			-		-		(1,871)
	Land acquisition			(168,352)		(175,573)		(2,999,721)
	Land deposit			-		-		(48,423)
	Net proceeds on sales of assets			-		815,705		1,723,710
	Intangible asset			-		-		(369)

NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES				(168,352)		640,132		(1,326,674)

FINANCING ACTIVITIES
	Net assets held for sales					-
	Issuance of common shares			-		-		591,861
	Senior secured promissory note			356,494		-		3,178,088
	Due to related party			(2,586)		-		-
	Loan from a shareholder			-		(240,619)		(47,141)
	Note payable			(232,084)		-		(194,984)
	Convertible note payable			-		(101,189)		(1,390)

NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES				121,824		(341,808)		3,526,434

EFFECT OF EXCHANGE RATE ON CASH				(4,615)		(3,379)		(7,822)

NET INCREASE (DECREASE) IN CASH				(189,677)		76,290		95,312

CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS - Beginning of Period				284,989		327		-

CASH AND CASH EQUIVALENTS - End of Period			$	95,312	$	76,617	$	95,312

SUPPLEMENTAL CASH FLOWS INFORMATION
	Interest expense paid in cash		$	9,739	$	26,710	$	84,672
	Taxes paid in cash		$	-	$	-	$	-

NON-CASH FINANCING ACTIVITIES
	Issuance of common shares for acquisition of Coronus Energy Corp.		$	-	$	-	$	21,638
	Establishment of intangible asset through acquisition of Coronus Energy Corp.		$	-	$	-	$	21,500
	Issuance of common shares for construction of solar power plant				$	-	$	6,584,400
	Cancellation of common shares for amendment of the agreement						$	5,925,960
	Forgiveness of debt by a director and shareholder				$	-	$	-

~~CONSOLIDATED~~(See ~~STATEMENTS~~accompanying OFnotes ~~STOCKHOLDERS’~~to ~~EQUITY~~the consolidated financial statements)

December 3, 2001 (inception) to December 31, 2012

(Expressed in U.S. Dollars)

							ACCUMULATED		DEFICIT
							OTHER		ACCUMULATED
					ADDITIONAL		COMPREHENSIVE		DURING		TOTAL
	COMMON				PAID-IN		INCOME		DEVELOPMENT		STOCKHOLDERS’
	SHARES		AMOUNT		CAPITAL		(LOSS)		STAGE		EQUITY
Stock issued for cash at $0.044 per share
on November 24, 2006	600,000		26,369		-		-		-		26,369
on December 7, 2006	400,000		17,579		-		-		-		17,579
Forgiveness of debt by a director and shareholder	-		-		31,643		-		-		31,643
Imputed interest from shareholder loan	-		-		939		-		-		939
Stock-based compensation on 100,000 options granted	-		-		7,932		-		-		7,932
Comprehensive income (loss):
Currency translation adjustment	-		-		-		(108)		-		(108)
(Loss) for the year	-		-		-		-		(65,430)		(65,430)
Balance, March 31, 2007	13,490,086		679,450		119,877		(11,973)		(750,348)		37,006
Stock issued for debt at $0.0485 per share
on May 4, 2007	52,500		2,548		-		-		-		2,548
Forgiveness of debt by a director and shareholder	-		-		34,950		-		-		34,950
Imputed interest from shareholder loan	-		-		1,126		-		-		1,126
Stock-based compensation on 100,000 options granted	-		-		8,787		-		-		8,787
Comprehensive income (loss):
Currency translation adjustment	-		-		-		4,447		-		4,447
(Loss) for the year	-		-		-		-		(96,432)		(96,432)
Balance, March 31, 2008	13,542,586		681,999		164,740		(7,526)		(846,780)		(7,567)
Forgiveness of debt by a director and shareholder	-		-		31,932		-		-		31,932
Imputed interest from shareholder loan	-		-		2,228		-		-		2,228
Stock-based compensation	-		-		55,180		-		-		55,180
Comprehensive income (loss):
Currency translation adjustment	-		-		-		10,232		-		10,232
(Loss) for the year	-		-		-		-		(172,863)		(172,863)
Balance, March 31, 2009	13,542,586		681,999		254,080		2,706		(1,019,643)		(80,858)
Stock issued for acquisition of Coronus Energy Corp. on November 2, 2009	2,000,000		10,752		10,886		-		-		21,638
Forgiveness of debt by a director and shareholder	-		-		33,015		-		-		33,015
Imputed interest from shareholder loan	-		-		4,997		-		-		4,997
Stock-based compensation	-		-		26,144		-		-		26,144
Comprehensive income (loss):
Currency translation adjustment	-		-		-		(25,943)		-		(25,943)
(Loss) for the year	-		-		-		-		(155,180)		(155,180)
Balance, March 31, 2010	15,542,586	$	692,751	$	329,122	$	(23,237)	$	(1,174,823)	$	(176,187)
Stock issued for cash at $0.402 per share on January 21, 2011 (net of share issuance cost)	212,500		70,693		-		-		-		70,693
Stock issued for construction of solar power plants on March 31, 2011	10,974,000		6,584,400		-		-		-		6,584,400
Forgiveness of debt by a director and shareholder	-		-		35,420		-		-		35,420
Comprehensive income (loss):
Currency translation adjustment	-		-		-		(11,701)		-		(11,701)
(Loss) for the year	-		-		-		-		(170,028)		(170,028)
Balance, March 31, 2011	26,729,086		7,347,844		364,542		(34,938)		(1,344,851)		6,332,597
Stock issued for cash at $0.624 per share on May 10, 2011	350,000		120,838		90,628		-		-		211,466
Stock issued for cash at $0.598 per share on October 24, 2011	17,000		5,770		4,501		-		-		10,271
Forgiveness of debt by a director and shareholder	-		-		38,165		-		-		38,165
Warrants and conversion beneficiary features	-		-		100,698		-		-		100,698
Comprehensive income (loss):
Currency translation adjustment	-		-		-		8,706		-		8,706
(Loss) for the year	-		-		-		-		(370,798)		(370,798)
Balance, March 31, 2012	27,096,086	$	7,474,452	$	598,534	$	(26,232)	$	(1,715,649)	$	6,331,105
Stock cancelled for amendment of agreement on August 15, 2012	(9,876,600)		(5,925,960)		-		-		-		(5,925,960)
Comprehensive income :											-
Currency translation adjustment	-		-		-		(1,392)		-		(1,392)
Income for the period	-		-		-		-		1,254,728		1,254,728
Balance, December 31, 2012 (Unaudited)	17,219,486	$	1,548,492	$	598,534	$	(27,624)	$	(460,921)	$	1,658,481

(See accompanying notes to the financial statements)

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Table of Contents

CORONUS SOLAR INC.

(A Development Stage Enterprise)

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in U.S. Dollars)

(Unaudited)

						Cumulative from
		Nine months ended				inception
		December 31,				(December 3, 2001) to
		2012		2011		December 31, 2012
OPERATING ACTIVITIES
Net income (loss) from operations	$	1,254,728	$	(261,857)	$	(460,921)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization - tangible and intangible assets		4,211		5,416		57,358
Amortization - financing costs on promissory note		3,253		-		3,253
Foreign exchange gain/loss		-		2,858		(20,930)
Forgiveness of debt		-		39,017		249,069
Imputed interests		-		-		27,873
Share issued for services / debts		-		-		26,301
Stock based compensation		-		-		492,309
Amortization on discount of convertible notes		87,143		-		102,341
Gain on sale of assets		(1,717,024)		-		(1,717,024)
Write down of land deposits		-		3,210		-
Write down of website development costs		-		-		17,390
Write-off trademark cost		-		-		279
Changes in non-cash working capital:
Other receivables		(7,407)		(5,403)		(7,052)
Prepaid expenses and deposits		(1,243,687)		432		(1,309,707)
Accounts payables and accrued liabilities		(113,416)		66,856		64,263
NET CASH USED IN OPERATING ACTIVITIES		(1,732,198)		(149,471)		(2,475,197)
INVESTING ACTIVITIES
Property, plant and equipment		-		-		(1,871)
Land acquisition		(643,259)		(38,301)		(775,849)
Land Deposit		-		(6,195)		(46,408)
Net proceeds on sales of assets		1,723,710		-		1,723,710
Intangible asset		-		-		(369)
NET CASH USED IN INVESTING ACTIVITIES		1,080,451		(44,496)		899,213
FINANCING ACTIVITIES
Issuance of common shares		-		228,582		591,861
Financing costs on promissory note		(75,000)		-		(75,000)
Senior secured promissory note		1,500,000		-		1,500,000
Loan from a shareholder		(243,373)		(19,894)		(47,756)
Payment of deferred financing fee		-		(10,269)		-
Note payable		-		-		37,100
Convertible note payable		(102,346)		-		(1,648)
NET CASH FROM FINANCING ACTIVITIES		1,079,281		198,419		2,004,557
EFFECT OF EXCHANGE RATE ON CASH		(1,182)		(9,983)		(1,894)
NET INCREASE (DECREASE) IN CASH		426,352		(5,531)		426,679
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS - Beginning of Period		327		6,233		-
CASH AND CASH EQUIVALENTS - End of Period	$	426,679	$	702	$	426,679
SUPPLEMENTAL CASH FLOWS INFORMATION
Interest expense paid in cash	$	45,724	$	11,466	$	63,360
Taxes paid in cash	$	-	$	-	$	-
NON-CASH FINANCING ACTIVITIES
Issuance of common shares for acquisition of Coronus Energy Corp.	$	-	$	-	$	21,638
Establishment of intangible asset through acquisition of Coronus Energy Corp.	$	-	$	-	$	21,500
Issuance of common shares for construction of solar power plant	$	-	$	-	$	6,584,400
Cancellation of common shares for amendment of the agreement	$	5,925,960	$	-	$	5,925,960

(See accompanying notes to the financial statements)

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Table of Contents

CORONUS SOLAR INC.

(A Development Stage Enterprise)

Notes to Consolidated Financial Statements

(Expressed in U.S. Dollars)

~~Nine~~Period ~~Months~~ Ended ~~December~~June 3130, ~~2012~~2013

(Unaudited)

Note 1 – Nature of Operations

Coronus Solar Inc. (“the Company”) was incorporated under the Canada Business Corporations Act on December 3, 2001 under the name “The LectureNet Learning Corporation” and was registered extra-provincially in the Province of British Columbia on January 24, 2002. The name of the Company was changed to InsightfulMind Learning, Inc. effective August 26, 2002 and was further changed to Coronus Solar Inc. on November 3, 2009.

The Company’s current business is to deploy and operate utility-scale solar power systems in the State of California, U.S.A. The Company is located in the City of Vancouver, Province of British Columbia, Canada.

On November 2, 2009, the Company completed an agreement (the “Share Purchase Agreement”) to acquire all of the issued and outstanding shares of Coronus Energy Corp. (“Coronus”), a start-up stage company founded to deploy and operate utility-scale solar power systems in the State of California. Under the Share Purchase Agreement, the Company acquired all of the outstanding shares of Coronus in exchange for 2,000,000 (post stock forward split) common shares of the Company, at a deemed value of $0.025 per share.

Under the Share Purchase Agreement, 2,025,000 common shares of the Company held by Mr. Jeff Thachuk, President of the Company, were transferred to Mr. Mark Burgert, the sole principal of Coronus, for $1, on August 19, 2009 and an aggregate of 905,000 (post stock forward split) stock options of the Company held by various persons were cancelled on August 10, 2009. Mr. Thachuk was appointed as a director and the Chairman, CEO, CFO, Secretary and Treasurer of Coronus, with Mr. Burgert continuing to hold the office of President of Coronus.

The transfer of the 2,025,000 common shares of the Company held by Mr. Thachuk to Mr. Burgert was treated, as a contribution by Mr. Thachuk, as part of the consideration for the acquisition of Coronus. Accordingly, a total of 4,025,000 common shares was determined as the consideration for the acquisition.

The Company engaged Mr. Burgert as a consultant, and in consideration for this engagement, granted to Mr. Burgert an aggregate of 350,000 options exercisable at a price of $0.065 per share. Additionally, the 9,050,000 common shares of the Company that are now collectively held between Messrs. Thachuk and Burgert have been placed into voluntary escrow, to be released to each of them on the basis of one common share each for each $0.50 earned in revenue by the Company on a consolidated basis.

~~-8-~~The Company is considered a development stage company as defined by Financial Accounting Standards Board (“FASB”) Accounting Standards Codification ("ASC") Topic 915 “Development Stage Entities”. The accompanying consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States, which contemplate continuation of the Company as a going concern. The Company has accumulated losses since its inception and requires additional funds to maintain and expand its intended business operations. In view of these matters, realization of a major portion of the assets in the accompanying balance sheet is dependent upon the continued operations of the Company, which in turn is dependent upon the Company's ability to meet its financing requirements, and the success of its future operations.

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Table of Contents

CORONUS SOLAR INC.

(A Development Stage Enterprise)

Notes to Consolidated Financial Statements

(Expressed in U.S. Dollars)

~~Nine~~Period ~~Months~~ Ended ~~December~~June 3130, ~~2012~~2013

(Unaudited)

Note 2 – Basis of Presentation - Going Concern Uncertainties

The Company's isability ~~considered~~to acontinue ~~development stage company~~ as ~~defined~~a bygoing ~~Financial~~concern ~~Accounting~~is ~~Standards~~in ~~Board~~substantial ~~(“FASB”)~~doubt ~~Accounting~~and ~~Standards~~is ~~Codification~~dependent ~~("ASC")~~upon ~~Topic~~obtaining ~~915~~additional ~~“Development~~financing ~~Stage~~and/or ~~Entities”.~~achieving ~~The~~a ~~accompanying~~sustainable ~~consolidated~~profitable ~~financial~~level ~~statements~~of ~~have~~operations. ~~been~~Management ~~prepared~~plans into ~~conformity~~obtain ~~with~~additional ~~generally~~financing ~~accepted~~through ~~accounting principles in~~ the ~~United~~issuance ~~States~~of shares, ~~which~~in ~~contemplate~~order ~~continuation~~to ofallow the Company asto acomplete ~~going~~its ~~concern.~~development ~~However,~~phase ~~the Company has limited operations~~ and ~~has~~commence ~~sustained~~earning ~~operating losses in recent years resulting in an accumulated deficit~~revenue. These Inconsolidated ~~view~~financial ofstatements ~~these~~do ~~matters,~~not ~~realization~~include ofany aadjustments ~~major~~that ~~portion~~might ofbe ~~the~~necessary ~~assets~~should in the ~~accompanying~~Company ~~balance~~be ~~sheet~~unable isto ~~dependent~~continue ~~upon~~as ~~the~~a ~~continued~~going ~~operations~~concern ofand ~~the~~therefore ~~Company,~~be ~~which~~required into ~~turn~~realize isits ~~dependent~~assets ~~upon~~and ~~the~~discharge ~~Company's ability to meet~~ its ~~financing~~liabilities ~~requirements,~~other ~~and~~than in the ~~success~~normal course of ~~its future operations~~business.

The Company's ability to continue as a going concern is in substantial doubt and is dependent upon obtaining additional financing and/or achieving a sustainable profitable level of operations. Management plans to obtain additional financing through the issuance of shares, in order to allow the Company to complete its development phase and commence earning revenue. These financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern and therefore be required to realize its assets and discharge its liabilities other than in the normal course of business.

The Company will seek additional equity as necessary and it expects to raise funds through private or public equity investment in order to support existing operations and expand the range of its business. There is no assurance that such additional funds will be available for the Company on acceptable terms, if at all.

Information on the Company’s working capital and deficit is:

		December 31,			March 31,
		June 30,		March 31,
		2012			2012
		2013		2013
Working capital (deficiency)		$	193,966		$	(390,180	)
Working capital	$	264,017	$	(2,874,589)
Deficit		$1,817,715	~~460,099~~	1,388,658	$	~~1,715,649~~

Note 3 – Summary of Significant Accounting Policies

~~The~~(a) ~~accompanying~~Principles ~~unaudited consolidated interim financial statements have been prepared in accordance with the instruction from Form 10-Q pursuant to the rules and regulations~~ of the Securities and Exchange Commission and, therefore, do not include all information and notes normally provided in the audited financial statements and should be read in conjunction with the Company’s audited consolidated financial statements for fiscal year ended March 31, 2012 filed with the United States Securities and Exchange Commission. The result of operations for the interim periods presented is not necessarily indicative of the results to be expected for the full year.consolidation

The accompanying consolidated financial statements include the accounts of Coronus Solar Inc. and its 100% owned subsidiaries, Coronus Energy Corp. and Coronus 29-9Palms Morongo LLC, and the 100% owned, subsidiaries of Coronus Energy Corp., namely, Coronus 29-Palms North 1 LLC, Coronus 29-Palms North 2 LLC, Coronus 29-Palms North 3 LLC, Coronus Yucca Valley East 1 LLC, Coronus Yucca Valley East 2 LLC, Coronus Yucca Valley East 3 LLC, Coronus Joshua Tree East 1 LLC, Coronus Joshua Tree East 2 LLC, Coronus Joshua Tree East 3 LLC, Coronus Joshua Tree East 4 LLC, Coronus Joshua Tree East 5 LLC, Coronus Apple Valley East 1 LLC, Coronus Apple Valley East 2 LLC, Coronus Adelanto West 1 LLC and Coronus Adelanto West 2 LLC, (collectively, the “Company”). All significant inter-company transactions and accounts have been eliminated in consolidation.

(b) Basis of presentation

The accompanying unaudited consolidated interim financial statements have been prepared in accordance with the instructions from Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission and, therefore, do not include all information and notes normally provided in the audited financial statements and should be read in conjunction with the Company’s audited consolidated financial statements for fiscal year ended March 31, 2013 filed with the United States Securities and Exchange Commission. The result of operations for the interim periods presented is not necessarily indicative of the results to be expected for the full year.

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Table of Contents

CORONUS SOLAR INC.

(A Development Stage Enterprise)

Notes to Consolidated Financial Statements

(Expressed in U.S. Dollars)

~~Nine~~Period ~~Months~~ Ended ~~December~~June 3130, ~~2012~~2013

(Unaudited)

Note 3 – Summary of Significant Accounting Policies - Continued

The accompanying unaudited consolidated interim balance sheets, statements of operations and comprehensive income (loss), stockholders’ equity and cash flows reflected all adjustments, consisting of normal recurring adjustments, that are, in the opinion of management, necessary for a fair presentation of the financial position of the Company, at ~~December~~June 3130, ~~2012~~2013, and the results of operations and cash flows for the ~~nine~~three months ended ~~December~~June 3130, ~~2012~~2013, and for the period from December 3, 2001 (Date of Commencement) to ~~December~~June 3130, ~~2012~~2013.

Note 4 – Accounting Pronouncements Adopted During the Period

(ia) ~~Presentation~~Disclosures ofabout ~~Comprehensive~~offsetting ~~Income~~assets and liabilities

On April 1, ~~2012~~2013, the Company adopted ~~the FASB issued~~ ASU 2011-0511, “~~Comprehensive~~Disclosures ~~Income~~about ~~(Topic~~Offsetting ~~220):~~Assets ~~Presentation~~and ~~of Comprehensive Income~~Liabilities”., ~~ASU~~which ~~2011-05~~is ~~provides~~in ~~guidance~~an oneffort ~~the~~to ~~presentation~~improve ofcomparability ~~comprehensive~~between ~~income.~~US ~~This~~GAAP ~~guidance~~and ~~eliminates~~IFRS ~~the~~financial ~~current~~statements ~~option~~with regard to ~~report~~the ~~other~~presentation ~~comprehensive~~of ~~income~~offsetting assets and ~~its~~liabilities ~~components~~on in the statement of ~~changes~~financial inposition ~~equity~~arising from financial and derivative instruments, and repurchase agreements. The ~~guidance~~ASU ~~allows~~establishes ~~two~~additional ~~presentation~~disclosures ~~alternatives:~~presenting ~~(1)~~the ~~present~~gross ~~items~~amounts of ~~net~~recognized ~~income~~assets and ~~other~~liabilities, ~~comprehensive~~offsetting ~~income~~amounts, inand ~~one~~the ~~continuous~~net ~~statement,~~balance ~~referred~~reflected toin as the statement of ~~comprehensive~~financial ~~income;~~position. orDescriptive ~~(2)~~information inregarding ~~two~~the ~~separate,~~nature ~~but~~and ~~consecutive,~~rights ~~statements~~ of ~~net~~the ~~income~~offset ~~and~~must ~~other~~also ~~comprehensive~~be ~~income~~disclosed. The ~~Company~~adoption ~~has~~of ~~chosen~~the ~~alternative~~new 1guidance ~~for~~is ~~the~~not ~~presentation~~expected ofto ~~comprehensive~~have ~~income~~an impact on the Company’s financial statements.

~~Note~~(b) 5Comprehensive ~~– New Accounting Pronouncements~~income

On April 1, 2013, the Company adopted ASU 2013-02, "Comprehensive Income (iTopic 220); ~~Disclosures~~Reporting ~~About~~of ~~Offsetting~~Amounts ~~Assets~~Reclassified out of Accumulated Other Comprehensive Income." This updated guidance improves the reporting of significant items reclassified out of accumulated other comprehensive income and ~~Liabilities~~requires an entity to present, either on the face of the statement where net income is presented or in the notes, separately for each component of comprehensive income, the current period reclassifications out of accumulated other comprehensive income by the respective line items of net income affected by the reclassification. Other than requiring additional disclosures, the adoption did not have an effect on our consolidated financial statements.

InNote ~~December,~~5 ~~2011,~~– ~~the~~New ~~FASB~~Accounting ~~issued~~Pronouncements ~~ASU~~Not ~~2011-11,~~Yet “Disclosures about Offsetting Assets and Liabilities”, in an effort to improve comparability between US GAAP and IFRS financial statements with regard to the presentation of offsetting assets and liabilities on the statement of financial position arising from financial and derivative instruments, and repurchase agreements. The ASU establishes additional disclosures presenting the gross amounts of recognized assets and liabilities, offsetting amounts, and the net balance reflected in the statement of financial position. Descriptive information regarding the nature and rights of the offset must also be disclosed. This guidance is effective as of the beginning of a fiscal year that begins after January 1, 2013. The adoption of the new guidance is not expected to have an impact on the Company’s financial statements.Adopted

(a) Foreign currency

In March 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") 2013-05, "Foreign Currency Matters (Topic 830); Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity." This guidance applies to the release of the cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a business (other than a sale of in substance real estate or conveyance of oil and gas mineral rights) within a foreign entity. ASU No. 2013-05 is effective prospectively for fiscal years (and interim reporting periods within those years) beginning after December 15, 2013. We will adopt this guidance beginning with our fiscal quarter starting from April 1, 2014. We are currently reviewing the provisions of ASU No. 2013-05 on our consolidated financial statements.

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Table of Contents

CORONUS SOLAR INC.

(A Development Stage Enterprise)

Notes to Consolidated Financial Statements

(Expressed in U.S. Dollars)

Period Ended June 30, 2013

Note 5 – New Accounting Pronouncements Not Yet Adopted - Continued

Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s financial statements upon adoption.

Note 6 – Earnings (Loss) per Share

The calculation of basic and diluted loss per share for the period ended June 30, 2013 was based on the net loss attributable to common shareholders of $429,057 and a weighted average number of common shares outstanding of 17,219,486. 740,000 stock options and 533,666 stock purchase warrants were excluded from the diluted loss per share calculations as the effects would be anti-dilutive.

The calculation of basic and diluted earnings per share for the period ended June 30, 2012 was net income attributable to common shareholders of $598,490 and a weighted average number of common shares outstanding of 27,096,086 and 27,921,403, respectively.

Weighted average number of common shares calculations for basic and diluted earnings (loss) per share for the period ended June 30, 2013 and 2012 are as summarized as follows:

	Three Months ended
	June 30,
	2013	2012

Issued common share at beginning of period	17,219,486	27,096,086

Weighted average number of common shares at June 30 for basic earnings (loss) per share calculation	17,219,486	27,096,086

Effect of share options on issue	-	691,900
Effect of share warrants on issue	-	133,417

Diluted Weighted average number of common shares at June 30 for diluted earnings (loss) per share calculation	17,219,486	27,921,403

The average market value of the Company’s shares for purposes of calculating the dilutive effect of share options and warrants was based on quoted market prices for the period during which the options were outstanding.

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Table of Contents

CORONUS SOLAR INC.

(A Development Stage Enterprise)

Notes to Consolidated Financial Statements

(Expressed in U.S. Dollars)

~~Nine~~Period ~~Months~~ Ended ~~December~~June 3130, ~~2012~~2013

~~(Unaudited)~~Note 7 – Prepaid expenses and deposits

~~Note~~Prepaid 6expenses –and ~~Earnings~~deposits ~~(Loss)~~at ~~per~~June ~~Share~~30, 2013 and March 31, 2013 were summarized as follows:

The calculation of basic and diluted loss per share for the three months ended December 31, 2012 was based on the net loss attributable to common shareholders of $117,310, (2011: $88,428) and $117,310, (2011: $88,428) and a weighted average number of common shares outstanding of 17,219,486 (2011: 27,091,836) and 17,219,486 (2011: 27,091,836) respectively. 533,666 warrants and 740,000 options were excluded from the diluted weighted average number of common shares calculation as their effect would have been anti-dilutive.

			June 30,		March 31,
			2013		2013
Current
	Prepaid expenses	$	405	$	766
	Prepaid expenses - Utility Interconnection Studies		-		25,900
	Land deposit (a)		1,433		1,000
Long Term
	Development security deposit		-		564,150
		$	1,838	$	591,816

~~The calculation of basic and diluted earnings per share for the nine months ended December 31, 2012 was based on the net income attributable to common shareholders of $1,255,550 and $1,255,550 and~~ (a) ~~weighted~~Land ~~average number of common shares outstanding of 22,103,914 and 22,929,230, respectively .~~deposit

~~The~~On ~~calculation~~October of24, ~~basic~~2012, ~~and~~Coronus ~~diluted~~entered ~~loss~~into ~~per~~a ~~share~~Vacant ~~for~~Land Purchase Agreement (the ~~nine~~“29-Palms ~~months~~Morongo ~~ended~~Agreement”) ~~December~~to 31acquire a 24.23 acre parcel of vacant land, ~~2011~~situated ~~was~~north ~~loss~~of ~~attributable~~29-Palms, toin ~~common~~the ~~shareholders~~County of San Bernardino, California. The purchase price for the land is $~~261~~86,~~857~~683, ~~and~~all cash. Coronus deposited $~~261~~1,~~857~~000 into escrow and aagreed ~~weighted~~to ~~average~~deposit ~~number~~an additional $85,683 within sufficient time to close escrow. Effective May 3, 2013, the parties amended the 29-Palms Morongo Agreement, wherein the parties agreed to an option arrangement where an option (the “Option”) to purchase the 24.23 acre parcel of ~~common~~vacant ~~shares~~land ~~outstanding~~was adopted, with the following terms: 1) Coronus 29-Palms Morongo LLC pays monthly payments equal to 6% per annum of 27the purchase price,~~033~~ or $433.42 per month,~~715~~ ~~and~~2) 27the monthly payments are applied to the purchase price,~~033~~ provided Coronus 29-Palms Morongo LLC exercises the Option,~~715~~ ~~respectively.~~otherwise ~~533~~the payments are forfeited to the seller,~~666~~ ~~warrants~~3) ~~and~~the ~~740~~term of the Option is 24 months,~~000~~ ~~options~~4) ~~were~~failure ~~excluded~~to ~~from~~make the ~~diluted~~monthly ~~weighted~~payment ~~average~~terminates ~~number~~the Option, and 5) during the term of ~~common~~the ~~shares~~Option, ~~calculation~~the asseller ~~their~~provides ~~effect~~the ~~would~~necessary ~~have~~consent ~~been~~for ~~anti~~Coronus 29-~~dilutive~~Palms Morongo LLC to apply for a conditional use permit from the County of San Bernardino.

~~Weighted~~Note ~~average~~8 ~~number~~– ofAssets ~~common~~Held ~~shares calculations~~ for ~~basic and diluted earnings (loss) per share for the three-month and nine-month periods ended December 31, 2012 are as summarized as follows:~~Sale

	Three months ended				Nine months ended
	December 31,				December 31,
	2012		2011		2012			2011
Issued common share at beginning of period		17,219,486		27,079,086		27,096,086			26,729,086
Issued during the period		-		12,750		-			304,629
Cancelled during the period		-		-		(4,992,172	)		-
Weighted average number of common
shares at December 31 for basic loss
per share calculation		17,219,486		27,091,836		22,103,914			27,033,715
Effect of share options on issue		-		-		691,900			-
Effect of share warrants on issue		-		-		133,416			-
Diluted Weighted average number of
common shares at December 31 for
diluted earnings (loss) per share calculation		17,219,486		27,091,836		22,929,230			27,033,715

During the period ended June 30, 2013, the Company recorded an assets held for sale of $4,314,917. The assets held for sale resulted from the Company and Coronus entered into a share purchase and development services agreement (the “Share Purchase and Development Services Agreement”) with Redwood Solar Development LLC (“Redwood”) [see Note 18(b)]. Redwood is an affiliate of Clean Focus. Under the Share Purchase and Development Services Agreement, the Company has agreed to sell 100% of the issued and outstanding shares of Coronus to Redwood, in addition to performing certain development services in respect of the twelve anticipated, utility-scale, solar PV projects of Coronus. The Company is scheduled to hold an annual and special meeting of its shareholders (the “Meeting”) on September 16, 2013, at which time, its shareholders will vote, by proxy or in person, on whether to approve the Share Purchase and Development Services Agreement. The closing date (the “Closing Date”) means the date on which the closing will occur, which will be not more than three business days following the date of the Meeting.

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Table of Contents

CORONUS SOLAR INC.

(A Development Stage Enterprise)

Notes to Consolidated Financial Statements

(Expressed in U.S. Dollars)

~~Nine~~Period ~~Months~~ Ended ~~December~~June 3130, ~~2012~~2013

~~(Unaudited)~~Note 8 – Assets Held for Sale – Continued

~~Note~~The 6assets –held ~~Earnings~~for ~~(Loss)~~sale ~~per~~are ~~Share~~summarized -as ~~Continued~~follows:

		June 30,
		2013

Prepaid expenses and deposits (a) and (b)		576,150
Land (c)		92,758
Project assets (d)		3,646,009
	$	4,314,917

~~Note~~(a) 7Utility -Interconnection ~~Property, Plant and Equipment~~Studies

~~Property,~~(i) ~~plant~~FAS ~~and~~Study ~~equipment~~Agreements atfor ~~December~~Projects ~~31,~~Coronus ~~2012~~Adelanto ~~and~~West ~~March~~1 ~~31,~~and ~~2012 were summarized as follows:~~2

				Accumulated		Net book
December 31, 2012		Cost		depreciation		value
Office equipment	$	1,379	$	1,248	$	131
Computer equipment		1,055		1,026		29
Land		1,348,649		-		1,348,649
	$	1,351,083	$	2,274	$	1,348,809

On February 27, 2013, Coronus entered into two Facilities Study Agreements (the “FAS Agreements for Adelanto West 1 and 2”) with SCE. The FAS Agreements relate to Coronus’ application for interconnection service and the CREST tariff for two 1.5 MW solar PV systems on the 40 acre parcel of vacant land, situated in the City of Adelanto, California, Coronus acquired on April 19, 2012 (Note 8(iii)).

				Accumulated		Net book
March 31, 2012		Cost		depreciation		value
Office equipment	$	1,373	$	1,220	$	153
Computer equipment		1,051		1,014		37
Land		334,599		-	$	334,599
	$	337,023	$	2,234	$	334,789

The FAS Agreements set forth the terms and conditions for SCE to perform facilities studies to determine the impacts that would result from interconnecting the two PV systems and the adequacy of SCE’s electrical system to accommodate them. In addition, SCE shall make a refined determination of the required interconnection facilities and distribution system upgrades, and any other modifications or additions that would be needed, to accommodate the two PV systems. The estimated cost of each study is $15,000. On entering into the FAS Agreements, Coronus paid SCE the $30,000 in deposits which $28,000 has been amortized to expenses as at June 30, 2013.

~~Acquisition~~(b) ofDevelopment ~~Vacant~~security ~~Land~~deposit

(i) Power Purchase Agreements for Projects Coronus 29-Palms ~~East~~North 1, 2 and 3

On August 2830, ~~2010,~~2012 (the ~~Company~~“29-Palms North PPAs Effective Date”), Coronus’s wholly-owned ~~subsidiary~~subsidiaries, Coronus ~~Energy~~29-Palms ~~Corp.~~North (“1 LLC, Coronus”) 29-Palms North 2 LLC, and Coronus 29-Palms North 3 LLC, entered into athree ~~Vacant~~identical ~~Land~~Power Purchase ~~Agreement~~Agreements (“the “29-Palms ~~East~~North ~~Agreement~~PPAs”) with SCE. The 29-Palms North PPAs relate to ~~acquire~~Coronus’ aapplications 30for interconnection service and the CREST tariff for three 1.5 MW solar PV power systems (the “29-Palms North 1, 29-Palms North 2, and 29-Palms North 3 Projects”) on the 160 acre parcel of vacant land, situated ~~east~~north of ~~29-~~Twentynine Palms, in the County of San Bernardino, California. ~~The~~(the ~~purchase~~“29-Palms ~~price~~North ~~was~~Re-Site ~~$32~~Property”),~~000.~~ ~~The~~Coronus ~~transaction~~acquired ~~closed~~ on ~~January~~December 2428, ~~2011~~2012.

(ii) Newberry Springs

On January 24, 2011, Coronus entered into a Vacant Land Purchase Agreement (the “Newberry Springs Agreement”) to acquire a 20 acre parcel of vacant land, situated in Newberry Springs, in the County of San Bernardino, California. The purchase price was $45,000. Coronus paid $8,000 and the vendor agreed to carry back the balance amount of $37,000 for two years at 6.5% per annum interest, with monthly payments of interest only. The transaction closed on March 17, 2011.

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Table of Contents

CORONUS SOLAR INC.

(A Development Stage Enterprise)

Notes to Consolidated Financial Statements

(Expressed in U.S. Dollars)

~~Nine~~Period ~~Months~~ Ended ~~December~~June 3130, ~~2012~~2013

~~(Unaudited)~~Note 8 – Assets Held for Sale - Continued

~~Note~~(b) 7Development -security ~~Property,~~deposit ~~Plant and Equipment~~ - Continued

~~Acquisition~~The 29-Palms North PPAs are standardized, must-take, full buy/ sell, power purchase agreements, where SCE purchases all of ~~Vacant~~the ~~Land~~29-Palms North 1, 29-Palms ~~Continued~~North 2, and 29-Palms North 3 Projects’ generation, net of station use. The term of the 29-Palms North PPAs is 20 years. The price SCE pays for the generation shall be premised on the adopted 2011 Market Price Referent, and shall be adjusted according to SCE’s time of delivery periods and energy allocation factors, as scheduled in the 29-Palms North PPAs. Initial operation of the 29-Palms North 1, 29-Palms North 2, and 29-Palms North 3 Projects must be no later than eighteen months from the 29-Palms North PPAs Effective Date. The 29-Palms North PPAs include, but are not limited to, provisions in respect of termination, facility operation, billing and payment, curtailment, and insurance. Additionally, on or before the thirtieth day following the 29-Palms North PPAs Effective Date, Coronus was required to post and maintain development fees (the “29-Palms North PPAs Development Securities”) equal to $38,250 per 29-Palms North PPA. If, on or before initial operation, Coronus demonstrates to SCE's satisfaction that it has installed all of the equipment or devices necessary for Coronus to satisfy the gross power rating of the generating facilities, SCE shall return the 29-Palms North PPAs Development Securities to Coronus within thirty days of each facility’s initial operation. On September 27, 2012, Coronus paid the 29-Palms North PPAs Development Securities.

(~~iii~~ii) ~~29-Palms~~Power ~~North~~Purchase Agreements for Projects Coronus Yucca Valley East 1 and 2

On ~~January~~August 2330, ~~2011~~2012 (the “Yucca Valley East PPAs Effective Date”), Coronus’ wholly-owned subsidiaries, Coronus Yucca Valley East 1 LLC and Coronus Yucca Valley East 2 LLC, entered into atwo ~~Vacant~~identical ~~Land~~Power Purchase ~~Agreement~~Agreements (the “~~29-Palms~~Yucca ~~North~~Valley ~~Agreement~~East PPAs”) with SCE. The Yucca Valley East PPAs relate to ~~acquire~~Coronus’ aapplications 39for interconnection service and the CREST tariff for two 1.255 MW solar PV power systems (the “Yucca Valley East 1 and Yucca Valley East 2 Projects”) on the 34.07 acre parcel of vacant land, situated ~~north~~east of ~~29-Palms~~Yucca Valley, in the County of San Bernardino, California. ~~The~~(the ~~purchase~~“Yucca ~~price~~Valley ~~was~~East ~~$40~~Property”),~~000.~~ Coronus ~~paid~~acquired ~~$8,000~~on ~~and~~August ~~the~~17, ~~vendor~~2012, ~~agreed~~and toon ~~carry~~the ~~back~~adjacent ~~the~~20 ~~balance~~acre ~~amount~~parcel of ~~$32,000~~vacant ~~for~~land ~~two~~(the ~~years~~“Yucca atValley ~~6.5%~~East ~~per~~#2 ~~annum interest~~Property”), ~~with~~Coronus ~~monthly~~agreed ~~payments~~to ofacquire ~~interest only. The transaction closed~~ on ~~May~~March 1628, ~~2011~~2013.

The Yucca Valley East PPAs are standardized, must-take, full buy/ sell, power purchase agreements, where SCE purchases all of the Yucca Valley East 1 and Yucca Valley East 2 Projects’ generation, net of station use. The term of the Yucca Valley East PPAs is 20 years. The price SCE pays for the generation shall be premised on the adopted 2011 Market Price Referent, and shall be adjusted according to SCE’s time of delivery periods and energy allocation factors, as scheduled in the Yucca Valley East PPAs. Initial operation of the Yucca Valley East 1, Yucca Valley East 2, and Yucca Valley East 3 Projects must be no later than eighteen months from the Yucca Valley East PPAs Effective Date. The Yucca Valley East PPAs include, but are not limited to, provisions in respect of termination, facility operation, billing and payment, curtailment, and insurance. Additionally, on or before the thirtieth day following the Yucca Valley East PPAs Effective Date, Coronus was required to post and maintain development fees (ivthe “Yucca Valley East PPA Development Securities”) ~~Joshua~~equal ~~Tree~~to $37,604 per Yucca Valley East PPA. If, on or before initial operation, Coronus demonstrates to SCE's satisfaction that it has installed all of the equipment or devices necessary for Coronus to satisfy the gross power rating of the generating facilities, SCE shall return the Yucca Valley East PPA Development Securities to Coronus within thirty days of each facility’s initial operation. On September 27, 2012, Coronus paid the Yucca Valley East PPA Development Securities.

On May 9, 2011, Coronus entered into a Vacant Land Purchase Agreement (the “Joshua Tree East Agreement”) to acquire a 56.03 acre parcel of vacant land, situated east of Joshua Tree, in the County of San Bernardino, California. The purchase price was $200,000. Coronus paid $30,000 and the vendor agreed to carry back the balance amount of $170,000 for three years at 6.5% per annum interest, with monthly payments of interest only. The transaction closed on June 30, 2011.

(v) Adelanto West

On September 23, 2011, Coronus entered into a Vacant Land Purchase Agreement (the “Adelanto West Agreement”) to acquire a 40 acre parcel of vacant land, situated in the City of Adelanto, County of San Bernardino, California. The purchase price was $400,000. Coronus paid $165,000 and the vendor agreed to carry back the balance amount of $235,000 for three years at 6.5% per annum interest, with monthly payments of interest only. The transaction closed on April 19, 2012.

(vi) Yucca Valley East

On October 9, 2011, Coronus entered into a Vacant Land Purchase Agreement (the “Yucca Valley East Agreement”) to acquire a 34.07 acre parcel of vacant land, situated east of Yucca Valley, in the County of San Bernardino, California. The purchase price was $170,000. Coronus paid $34,000 and the vendor agreed to carry back the balance amount of $136,000 for two years at 6.5% per annum interest, with monthly payments of interest only. The transaction closed on August 17, 2012.

(vii) 29-Palms North Re-Site

On December 6, 2012, Coronus entered into a Vacant Land Purchase Agreement (the “29-Palms North Re-Site Agreement”). Under the 29-Palms North Re-Site Agreement, Coronus agreed to acquire a 160 acre parcel of vacant land, situated north of 29-Palms, in the County of San Bernardino, California. The purchase price was $400,000. The transaction closed on December 28, 2012.

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Table of Contents

CORONUS SOLAR INC.

(A Development Stage Enterprise)

Notes to Consolidated Financial Statements

(Expressed in U.S. Dollars)

~~Nine~~Period ~~Months~~ Ended ~~December~~June 3130, ~~2012~~2013

~~(Unaudited)~~Note 8 – Assets Held for Sale - Continued

~~Note~~(b) 8Development -security ~~Construction~~deposit in- ~~Progress~~Continued

~~On August 15, 2012, the Company amended the purchase agreement for utility-scale, ground-mount, solar photovoltaic~~ (PViii) ~~power systems (the “Solar~~ Power ~~Systems~~Purchase Agreement~~”),~~ ~~the~~for ~~Company~~Project ~~entered into with~~ Coronus ~~and~~Yucca ~~Belectric~~Valley ~~Inc.~~East (“Belectric”), on March 31, 2011. Under the amended agreement (the “Amended Solar Power Systems Agreement”), the parties agreed to negotiate, in good faith, the purchase price of solar power systems on a per solar power system basis. As additional purchase and sale consideration, Belectric kept 1,097,400 of the original payment shares. Accordingly, 9,876,600 of the original payment shares were cancelled, resulting to a reduction of construction in progress of $5,925,960 [see Note 19(a)].3

AsOn ofJanuary ~~December~~15, 312013 (the “Yucca Valley East 3 PPA Effective Date”), ~~2012~~Coronus’ wholly-owned subsidiary, Coronus Yucca Valley East 3 LLC entered into a Power Purchase Agreement (the ~~Company~~“Yucca ~~recorded~~Valley ~~Construction~~East 3 PPA”) with SCE. The Yucca Valley East 3 PPA relates to Coronus’ application for interconnection service and the CREST tariff for a third 1.5 MW solar PV power system (the “Yucca Valley East 3 Project”) on the 34.07 acre parcel of vacant land, situated east of Yucca Valley, in ~~Progress~~the County of ~~$658~~San Bernardino,~~440~~ California (the “Yucca Valley East Property”), Coronus acquired on August 17, 2012, and on the adjacent 20 acre parcel of vacant land, Coronus agreed to acquire on March 28, 2013.

~~Note~~(iii) 9Power -Purchase ~~Intangible~~Agreement ~~Assets~~for Project Coronus Yucca Valley East 3 - Continued

The ~~Business~~Yucca ~~Plan~~Valley ~~was~~East ~~acquired~~3 ~~through~~PPA is a standardized, must-take, full buy/ sell, power purchase agreement, where SCE purchases all of the ~~acquisition~~Yucca Valley East 3 Project’s generation, net of ~~Coronus~~station ~~Energy~~use. ~~Corp~~The term of the Yucca Valley East 3 PPA is 20 years. The price SCE pays for the generation shall be premised on ~~November~~the 2adopted 2011 Market Price Referent, ~~2009~~and shall be adjusted according to SCE’s time of delivery periods and energy allocation factors, as scheduled in the Yucca Valley East 3 PPA. Initial operation of the Yucca Valley East 3 Project must be no later than eighteen months from the Yucca Valley East 3 PPA Effective Date. The ~~capital~~Yucca ~~cost~~Valley East 3 PPA includes, but is not limited to, provisions in respect of termination, facility operation, billing and payment, curtailment, and insurance. Additionally, on or before the thirtieth day following the Yucca Valley East 3 PPA Effective Date, Coronus was ~~amortized~~required ~~over~~to post and maintain a development fee (the “Yucca Valley East 3 ~~years~~PPA Development Security”) equal to $37,604. If, on or before initial operation, Coronus demonstrates to SCE's satisfaction that it has installed all of the equipment or devices necessary for Coronus to satisfy the gross power rating of the generating facility, SCE shall return the Yucca Valley East 3 PPA Development Security to Coronus within thirty days of the facility’s initial operation. On February 14, 2013, Coronus posted the Yucca Valley East 3 PPA Development Security.

~~Intangible~~(iv) ~~assets~~Power atPurchase ~~December~~Agreements ~~31,~~for ~~2012~~Projects ~~and~~Coronus ~~March~~Joshua 31Tree East 1, ~~2012~~2, ~~were~~3, ~~summarized~~4 asand ~~follows:~~5

				Accumulated				Net book
December 31, 2012		Cost		amortization		Write-off		value
Business plan	$	21,500	$	21,500	$	-	$	-

On December 7, 2012 (the “Joshua Tree East PPAs Effective Date”), Coronus’ wholly-owned subsidiaries, Coronus Joshua Tree East 1 LLC, Coronus Joshua Tree East 2 LLC, Coronus Joshua Tree East 3 LLC, Coronus Joshua Tree East 4 LLC, and Coronus Joshua Tree East 5 LLC, entered into five identical Power Purchase Agreements (the “Joshua Tree East PPAs”) with SCE. The Joshua Tree East PPAs relate to Coronus’ applications for interconnection service and the CREST tariff for five 1.5 MW solar PV power systems (the “Joshua Tree East 1, Joshua Tree East 2, Joshua Tree East 3, Joshua Tree East 4, and Joshua Tree East 5 Projects”) on the 56.03 acre parcel of vacant land, situated east of Joshua Tree, in the County of San Bernardino, California (the “Joshua Tree East Property”), Coronus acquired on June 30, 2011.

				Accumulated				Net book
March 31, 2012		Cost		amortization		Write-off		value
Business plan	$	$21,500	$	17,320	$	-	$	4,180

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Table of Contents

CORONUS SOLAR INC.

(A Development Stage Enterprise)

Notes to Consolidated Financial Statements

(Expressed in U.S. Dollars)

~~Nine~~Period ~~Months~~ Ended ~~December~~June 3130, ~~2012~~2013

~~(Unaudited)~~Note 8 – Assets Held for Sale - Continued

~~Note~~(b) 10Development -security ~~Sycamore~~deposit ~~Solar~~- ~~Photovoltaic Asset Sale Agreement~~Continued

~~On April 5, 2012, Coronus entered into a Solar Photovoltaic Asset Sale Agreement~~ (~~the “Sycamore Solar PV Asset Sale Agreement”~~iv) with Sycamore Physicians Partners LLC (“Sycamore”). Under the Sycamore Solar PV Asset Sale Agreement, Coronus agreed to sell, assign and transfer to Sycamore, Coronus’ sole membership in Coronus Hesperia West 1 LLC. On March 19, 2012, Coronus Hesperia West 1 LLC entered into a Power Purchase ~~Agreement~~Agreements ~~(“PPA”) with Southern California Edison (“SCE”). The PPA relates to Coronus’ application~~ for ~~interconnection~~Projects ~~service and the CREST tariff for a 1.2 MW solar PV power system (the “~~Coronus ~~Hesperia~~Joshua ~~West~~Tree 1East ~~Project”) on the 20 acre parcel of vacant land~~1, ~~situated west of Hesperia~~2, ~~in the County of San Bernardino~~3, ~~California,~~4 Coronus agreed to acquire pursuant to the Hesperia West Agreement [see Note 19(c)(i)]. Additionally, under the Sycamore Solar PV Asset Sale Agreement, Coronus agreed to assign to Sycamore, the Hesperia West Agreement. Further, under the Sycamore Solar PV Asset Sale Agreement, Coronus agreed to use its best efforts to obtain a second PPA from SCE in relation to the Hesperia West 20 acre parcel, and ~~to sell this PPA (relating to a 1.~~5 MW- ~~solar PV system) to Sycamore if obtained.~~Continued

~~Under~~The ~~the~~Joshua ~~Sycamore~~Tree ~~Solar~~East PVPPAs ~~Asset~~are ~~Sale~~standardized, ~~Agreement~~must-take, ~~Sycamore~~full ~~agreed~~buy/ tosell, ~~pay~~power $purchase agreements, where SCE purchases all of the Joshua Tree East 1,~~726~~ Joshua Tree East 2,~~219~~ ~~(the~~Joshua ~~“Basic~~Tree ~~Price”)~~East to3, ~~Coronus~~Joshua ~~for~~Tree ~~the~~East ~~sole~~4, ~~ownership~~and inJoshua ~~Coronus~~Tree ~~Hesperia~~East ~~West~~5 1Projects’ ~~LLC~~generation, ~~the~~net ~~assignment~~of station use. The term of the ~~Hesperia~~Joshua ~~West~~Tree ~~Agreement,~~East ~~and~~PPAs ~~the~~is ~~second~~20 ~~PPA~~years. OnThe ~~executing~~price SCE pays for the ~~Sycamore~~generation ~~Solar~~shall PVbe ~~Asset~~premised ~~Sale~~on ~~Agreement,~~the ~~Sycamore~~adopted ~~agreed~~2011 toMarket ~~pay~~Price ~~$817~~Referent,~~200~~ and shall be adjusted according to ~~Coronus,~~SCE’s time of delivery periods and ~~Coronus~~energy ~~agreed~~allocation tofactors, ~~transfer~~as scheduled in the ~~sole~~Joshua ~~membership~~Tree inEast ~~Coronus~~PPAs. ~~Hesperia~~Initial ~~West~~operation of the Joshua Tree East 1, ~~LLC~~Joshua toTree ~~Sycamore~~East 2, Joshua Tree East 3, Joshua Tree East 4, and toJoshua ~~assign~~Tree ~~the~~East ~~Hesperia~~5 ~~West~~Projects ~~Agreement~~must tobe ~~Sycamore.~~no ~~Under~~later than eighteen months from the ~~Sycamore~~Joshua ~~Solar~~Tree PVEast ~~Asset~~PPAs ~~Sale~~Effective ~~Agreement~~Date. The Joshua Tree East PPAs include, ~~Sycamore~~but ~~agreed~~are not limited to, ~~pay~~provisions ~~the~~in ~~balance~~respect of ~~the~~termination, ~~Basic~~facility ~~Price~~operation, orbilling ~~$909~~and payment,~~019~~ curtailment, toand ~~Coronus~~insurance. Additionally, on ~~delivery~~or ofbefore the ~~second~~thirtieth ~~PPA.~~day Onfollowing ~~April~~the ~~11,~~Joshua ~~2012~~Tree East PPAs Effective Date, ~~Sycamore~~Coronus ~~paid~~was required to post and maintain development fees (the ~~$817,200~~“Joshua Tree East PPAs Development Securities”) equal to ~~Coronus~~$36,736 ~~and~~per onJoshua ~~April~~Tree 12East PPA. If, ~~2012~~on or before initial operation, Coronus ~~transferred~~demonstrates to SCE's satisfaction that it has installed all of the ~~sole~~equipment ~~ownership~~or indevices necessary for Coronus ~~Hesperia~~to ~~West~~satisfy 1the ~~LLC~~gross topower ~~Sycamore~~rating ~~and~~of ~~assigned~~the generating facilities, SCE shall return the ~~Hesperia~~Joshua ~~West~~Tree ~~Agreement~~East PPAs Development Securities to ~~Sycamore~~Coronus within thirty days of each facility’s initial operation. On January 4, 2013, Coronus paid the Joshua Tree East PPAs Development Securities.

On(v) ~~August~~Power ~~30,~~Purchase ~~2012,~~Agreements ~~Coronus’~~for ~~wholly-owned~~Projects ~~subsidiary,~~ Coronus ~~Hesperia~~Apple ~~West~~Valley 2East ~~LLC,~~1 ~~entered into a PPA with SCE. Having obtained the second PPA on the Hesperia West land parcel, on September 6, 2012, Sycamore paid the balance of the Basic Price, of $909,019 to Coronus,~~ and ~~Coronus transferred the sole membership in Coronus West~~ 2 ~~LLC to Sycamore, thus concluding the Sycamore Solar PV Asset Sale Agreement.~~

On December 7, 2012 (the “Apple Valley East PPAs Effective Date”), Coronus’ wholly-owned subsidiaries, Coronus Apple Valley East 1 LLC and Coronus Apple Valley East 2 LLC, entered into two identical Power Purchase Agreements (the “Apple Valley East PPAs”) with SCE. The ~~Company~~Apple ~~recorded~~Valley aEast ~~gain~~PPAs onrelate to Coronus’ applications for interconnection service and the ~~sale~~CREST oftariff for two 1.5 MW solar PV power systems (the ~~Coronus~~“Apple ~~Hesperia~~Valley ~~West~~East 1 and Apple Valley East 2 Projects”) on the 14.78 and 8.91 acre parcels of $1vacant land,~~717~~ adjacent to one another,~~024~~ assituated east of ~~December~~Apple 31Valley, ~~2012~~in the County of San Bernardino, California [the “Apple Valley East Re-Site (Nguyen) Property” and the “Apple Valley East Re-Site (McGee) Property”, respectively], Coronus acquired on January 7 and March 5, 2013, respectively.

Note 11 - Loan From A Shareholder

Loan from a shareholder represents a series of loans from a director and shareholder of the Company which were unsecured and due on demand.

During the year ended March 31, 2012, the director and shareholder lent the Company a further CAD$39,300 (USD$39,335). The additional loan was unsecured and due on demand, and accrued interest at the annual rate of 4%.

During the year ended March 31, 2012, the director and shareholder was repaid by the Company CAD$66,800 (USD$66,831) of the principal amount owing, in respect of the loan.

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Table of Contents

CORONUS SOLAR INC.

(A Development Stage Enterprise)

Notes to Consolidated Financial Statements

(Expressed in U.S. Dollars)

~~Nine~~Period ~~Months~~ Ended ~~December~~June 3130, ~~2012~~2013

~~(Unaudited)~~Note 8 – Assets Held for Sale - Continued

~~Note~~(b) 11Development -security ~~Loan~~deposit ~~From A Shareholder~~ - Continued

On(v) ~~April~~Power ~~18,~~Purchase ~~2012,~~Agreements ~~the~~for ~~Company~~Projects ~~repaid,~~Coronus inApple ~~full,~~Valley ~~the~~East ~~shareholder~~1 ~~loan owed to the director~~ and ~~shareholder,~~2 ~~inclusive of interest outstanding. Additionally, included in accounts payable as at April 18, 2012, CAD$1,292 was owed to our principal executive officer for out~~-~~of-pocket~~ expenses. On April 18, 2012, the Company repaid, in full, the out-of-pocket expenses outstanding, as at April 18, 2012. Accordingly, inclusive of the loan principal, interest owing, and out-of-pocket expenses incurred, in aggregate, on April 18, 2012, the Company repaid the director and shareholder CAD$237,780 and USD$7,021.Continued

OnThe ~~September~~Apple 12Valley East PPAs are standardized, ~~2012~~must-take, full buy/ sell, power purchase agreements, where SCE purchases all of the ~~Company~~Apple ~~repaid~~Valley East 1 and Apple Valley East 2 Projects’ generation, net of station use. The term of the Apple Valley East PPAs is 20 years. The price SCE pays for the generation shall be premised on the adopted 2011 Market Price Referent, and shall be adjusted according to SCE’s time of delivery periods and energy allocation factors, as scheduled in ~~full~~the Apple Valley East PPAs. Initial operation of the Apple Valley East 1 and Apple Valley East 2 Projects must be no later than eighteen months from the Apple Valley East PPAs Effective Date. The Apple Valley East PPAs include, but are not limited to, provisions in respect of termination, facility operation, billing and payment, curtailment, and insurance. Additionally, on or before the ~~management~~thirtieth day following the Apple Valley East PPAs Effective Date, Coronus was required to post and maintain development fees of(the ~~CAD~~“Apple Valley East PPAs Development Securities”) equal to $4838,~~000~~850 ~~accrued~~per Apple Valley East PPA. If, on or before initial operation, Coronus demonstrates to SCE's satisfaction that it has installed all of the ~~director~~equipment ~~and~~or ~~shareholder~~devices necessary for Coronus to satisfy the ~~prior~~gross ~~year'~~power rating of the generating facilities, SCE shall return the Apple Valley East PPAs Development Securities to Coronus within thirty days of each facility’s ~~services~~initial ~~provided~~operation. On January 4, 2013, Coronus paid the Apple Valley East PPAs Development Securities.

At(vi) ~~December~~Power ~~31,~~Purchase ~~2012,~~Agreements ~~the~~for ~~Company~~Projects ~~has~~Coronus ~~accrued~~Adelanto ~~interest~~West ~~payable~~1 ofand ~~$nil (March 31, 2012: $17,991).~~2

~~Note~~On 12January 15, 2013 (the “Adelanto West PPAs Effective Date”), Coronus’ wholly-owned ~~Notes~~subsidiaries, ~~Payable~~Coronus Adelanto West 1 LLC and Coronus Adelanto West 2 LLC, entered into two identical Power Purchase Agreements (the “Adelanto West PPAs”) with SCE. The Adelanto West PPAs relate to Coronus’ applications for interconnection service and the CREST tariff for two 1.5 MW solar PV power systems (the “Adelanto West 1 and Adelanto West 2 Projects”) on the 40 acre parcel of vacant land, situated in the City of Adelanto, California (the “Adelanto West Property”), Coronus acquired on April 19, 2012.

~~Notes~~The ~~payable~~Adelanto atWest ~~December~~PPAs 31are standardized, ~~2012~~must-take, full buy/ sell, power purchase agreements, where SCE purchases all of the Adelanto West 1 and Adelanto West 2 Projects’ generation, net of station use. The term of the Adelanto West PPAs is ~~summarized~~20 years. The price SCE pays for the generation shall be premised on the adopted 2011 Market Price Referent, and shall be adjusted according to SCE’s time of delivery periods and energy allocation factors, as ~~follows:~~scheduled in the Adelanto West PPAs. Initial operation of the Adelanto West 1 and Adelanto West 2 Projects must be no later than eighteen months from the Adelanto West PPAs Effective Date. The Adelanto West PPAs include, but are not limited to, provisions in respect of termination, facility operation, billing and payment, curtailment, and insurance. Additionally, on or before the thirtieth day following the Adelanto West PPAs Effective Date, Coronus was required to post and maintain development fees (the “Adelanto West PPAs Development Securities”) equal to $37,604 per Adelanto West PPA. If, on or before initial operation, Coronus demonstrates to SCE's satisfaction that it has installed all of the equipment or devices necessary for Coronus to satisfy the gross power rating of the generating facilities, SCE shall return the Adelanto West PPAs Development Securities to Coronus within thirty days of each facility’s initial operation. On February 14, 2013, Coronus paid the Adelanto West PPAs Development Securities.

	December 31,		March 31,
Vacant Land	2012		2012
29-Palms North	$	-	$	32,084
Joshua Tree East		170,000		170,000
Adelanto West		235,534		-
Yucca Valley East		136,380		-
	$	541,914	$	202,084
Current
Newberry Springs	$	37,100	$	37,100
29-Palms North		32,084		-
	$	69,184	$	37,100
Total	$	611,098	$	239,184

On March 17, 2011, Coronus completed the Newberry Springs Vacant Land Purchase Agreement to acquire a 20 acre parcel of vacant land, situated in Newberry Springs, in the County of San Bernardino, California. The vendor agreed to carry back the balance amount of $37,000 for two years at 6.5% per annum interest, with monthly payments of interest only. At December 31, 2012, the Company has accrued interest payable of $100 (March 31, 2012: $100).

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Table of Contents

CORONUS SOLAR INC.

(A Development Stage Enterprise)

Notes to Consolidated Financial Statements

(Expressed in U.S. Dollars)

~~Nine~~Period ~~Months~~ Ended ~~December~~June 3130, ~~2012~~2013

~~(Unaudited)~~Note 8 – Assets Held for Sale - Continued

~~Note~~(b) 12Development -security ~~Notes~~deposit ~~Payable~~ - Continued

OnProvided ~~May 16, 2011, Coronus completed~~ the ~~29-Palms~~projects ~~North~~are ~~Vacant Land Purchase Agreement to acquire a 39.25 acre parcel of vacant land~~entitled, ~~situated~~all ~~north~~ of ~~29-Palms, in~~ the ~~County~~aforementioned ofprojects ~~San~~are ~~Bernardino,~~estimated ~~California. The vendor agreed~~ to ~~carry~~be ~~back~~online ~~the~~within ~~balance~~one ~~amount~~and ofone-half ~~$32,000 for two~~ years ~~at 6~~.~~5% per annum interest, with monthly payments of interest only. At December 31, 2012, the Company has accrued interest payable of $84 (March 31, 2012: $84).~~

On(c) ~~June 30, 2011, Coronus completed the Joshua Tree East Vacant~~ Land Purchase Agreement to acquire a 56.03 acre parcel of vacant land, situated east of Joshua Tree, in the County of San Bernardino, California. The vendor agreed to carry back the balance amount of $170,000 for three years at 6.5% per annum interest, with monthly payments of interest only.

On April 19, 2012, Coronus completed the Adelanto West Vacant Land Purchase Agreement to acquire a 40 acre parcel of vacant land, situated in the City of Adelanto, County of San Bernardino, California. The vendor agreed to carry back the balance amount of $235,000 for three years at 6.5% per annum interest, with monthly payments of interest only. At December 31, 2012, the Company has accrued interest payable of $534 (~~March~~i) ~~31,~~Newberry ~~2012: $nil).~~Springs

OnSuch ~~August~~represents ~~17, 2012, Coronus completed the Yucca Valley East Vacant Land Purchase Agreement to acquire~~ a ~~34.07~~20 acre parcel of vacant land, situated ~~east~~in ofNewberry ~~Yucca Valley~~Springs, in the County of San Bernardino, California. The ~~vendor~~purchase ~~agreed~~price towas ~~carry back the balance amount of~~ $~~136~~45,000. ~~for~~At ~~two~~this ~~years~~point atin ~~6.5% per annum interest~~time, ~~with~~the ~~monthly~~Company ~~payments~~has ofopted ~~interest~~not ~~only.~~to Atpursue ~~December~~interconnection ~~31,~~agreements ~~2012,~~for ~~the~~solar ~~Company~~PV ~~has~~power ~~accrued~~systems ~~interest~~sited ~~payable~~on ofthis ~~$380 (March 31, 2012: $nil)~~parcel.

~~Note~~(ii) 1329-Palms ~~– Promissory Note~~North

On ~~August~~January 1023, ~~2012~~2011, ~~the~~Coronus ~~Company~~entered ~~issued~~into a ~~promissory~~Vacant ~~note~~Land ~~for~~Purchase ~~CAD$40,000~~Agreement (the “~~Note~~29-Palms North Agreement”) to acquire a 39.25 ~~The~~acre ~~Note~~parcel ~~bore~~of anvacant ~~annual~~land, ~~interest~~situated ~~rate~~north of ~~12%~~29-Palms, ~~and~~in ~~was~~the ~~due~~County onof ~~demand~~San Bernardino, California. The ~~Note~~purchase ~~had~~price awas ~~first~~$40,000. ~~priority~~The ~~interest~~transaction inclosed ~~all~~on ~~the~~May ~~assets~~16, of2011. ~~the~~At ~~Company.~~this Onpoint ~~September~~in 10time, ~~2012,~~ the ~~promissory~~Company ~~note~~has ~~was~~opted ~~repaid~~not into ~~full~~pursue ~~with~~interconnection ~~the~~agreements ~~interest~~for ~~payment~~solar ofPV ~~CAD$408~~power systems sited on this parcel.

~~Note~~(d) 14Project ~~– Convertible Promissory Notes~~Assets

OnProject ~~February~~assets 2,consisted ~~2012, the Company issued a convertible promissory note for CAD$50,000 and 83,333 transferrable warrants for gross proceeds~~ of ~~CAD$50,000. On February 23, 2012,~~ the ~~Company~~following ~~issued~~at aJune ~~second convertible promissory note for CAD$50~~30,~~000~~ ~~and a further 83,333 transferrable warrants for gross proceeds of CAD$50,000. These convertible promissory notes, totalling CAD$100,000, matured on February 2,~~ 2013, and ~~bore~~March ~~an annual interest rate of 12%. The notes had a first priority interest in all the assets of the Company. The holders of the notes could convert the note and accrued interest~~31, at or before the maturity date, into common shares of the Company at CAD$0.60 each. Each warrant entitles the holder thereof to purchase a further common share of the Company at an exercise price of CAD$0.75 for a period of five years.2013:

	June 30, 2013						March 31, 2013
				Project						Project
				development						development
		Land		costs		Total		Land		costs		Total

Joshua Tree East	$	241,350	$	364,800	$	606,150	$	226,579	$	364,800	$	591,379
Adelanto West		436,100		74,920		511,020		420,738		74,920		495,658
Yucca Valley East		210,867		269,670		480,537		189,769		179,780		369,549
29-Palms North Re-Site		417,657		908,850		1,326,507		405,649		908,850		1,314,499
Apple Valley East Re-Site (Nguyen & McGee)		417,995		303,800		721,795		403,035		303,800		706,835
	$	1,723,969	$	1,922,400	$	3,646,009	$	1,645,770	$	1,832,150	$	3,477,920

Land

(i) Joshua Tree East

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Table of Contents

CORONUS SOLAR INC.

(A Development Stage Enterprise)

Notes to Consolidated Financial Statements

(Expressed in U.S. Dollars)

~~Nine~~Period ~~Months~~ Ended ~~December~~June 3130, ~~2012~~2013

~~(Unaudited)~~Note 8 – Assets Held for Sale - Continued

~~Note~~(d) 14Project –Assets ~~Convertible Promissory Notes~~ - Continued

~~According~~Land to ASC 470, the proceeds received in a financing transaction should first be allocated to the convertible promissory notes and the detached warrants on a relative fair value basis. The allocated value of the detached warrants is recorded in paid-~~in-capital.~~ ASC 470 should then be applied to the amount allocated to the convertible promissory note, and an effective conversion price should be calculated and used to measure the intrinsic value, if any, of the embedded conversion option. The intrinsic value of the conversion option is recognized as a reduction to the carrying amount of the convertible debt and an addition to the paid-in-capital.Continued

~~The~~(ii) ~~Company~~Adelanto ~~determined that the amounts allocated to the convertible promissory notes, the embedded conversion beneficiary features option, and warrants are CAD$nil, CAD$43,429, and CAD$56,571, respectively.~~West

~~The~~On ~~discount~~September on23, ~~issuance~~2011, ofCoronus ~~the~~entered ~~convertible~~into ~~promissory~~a ~~notes,~~Vacant ~~CAD$100,000,~~Land isPurchase ~~being~~Agreement ~~amortized~~(the ~~over~~“Adelanto ~~the~~West ~~life~~Agreement”) ofto ~~the~~acquire ~~notes.~~a ~~During~~40 ~~the~~acre ~~year~~parcel ~~ended~~of ~~March~~vacant 31land, ~~2012,~~situated anin ~~amount~~the City of ~~CAD$15~~Adelanto,~~184~~ ~~(USD$15~~County of San Bernardino,~~198)~~ California. The purchase price was ~~amortized~~$400,000. The transaction closed on April 19, 2012.

	US$	CAD$
Face value	100,090	100,000
Effective interest (137%)	(84,892)	(84,816)
	15,198	15,184

(iii) Yucca Valley East

On ~~April~~October 209, ~~2012~~2011, ~~the~~Coronus ~~Company~~entered ~~repaid,~~into ina ~~full,~~Vacant ~~the~~Land ~~CAD$50,000~~Purchase inAgreement ~~principal~~(the ~~and~~“Yucca ~~CAD$1,282~~Valley inEast ~~interest~~Agreement”) ~~owing~~to ~~against~~acquire ~~the~~a ~~first~~34.07 ~~note,~~acre ~~and~~parcel ~~the~~of ~~CAD$50~~vacant land,~~000~~ insituated ~~principal~~east ~~and~~of ~~CAD$937~~Yucca Valley, in ~~interest owing against~~ the ~~second~~County ~~note. An amount~~ of ~~CAD$5,356~~San ~~(USD$5~~Bernardino,~~302)~~ ~~was~~California. ~~amortized~~The ~~for~~purchase ~~the~~price ~~period~~was ~~from April 1 to April 19~~$170, ~~2012~~000. The ~~balance~~transaction ofclosed ~~the discount~~ on ~~issuance~~August ~~of the convertible promissory notes~~17, ~~$80,237, was written off as expenses~~2012.

~~Note~~(iv) 15 29-Palms ~~Senior~~North ~~Secured Promissory Note~~Re-Site

On December 206, 2012, Coronus ~~and~~entered ~~Coronus’~~into ~~wholly-owned~~a ~~subsidiaries,~~Vacant ~~Coronus~~Land ~~29-Palms~~Purchase ~~North~~Agreement 1(the ~~LLC, Coronus~~ “29-Palms North 2Re-Site ~~LLC,~~Agreement”). ~~Coronus~~Under the 29-Palms North 3Re-Site ~~LLC~~Agreement, Coronus ~~Yucca~~agreed ~~Valley~~to ~~East~~acquire 1 LLC, Coronus Yucca Valley East 2 LLC, Coronus Yucca Valley East 3 LLC, Coronus Joshua Tree East 1 LLC, Coronus Joshua Tree East 2 LLC, Coronus Joshua Tree East 3 LLC, Coronus Joshua Tree East 4 LLC, Coronus Joshua Tree East 5 LLC, Coronus Apple Valley East 1 LLC, Coronus Apple Valley East 2 LLC, Coronus Adelanto West 1 LLC, and Coronus Adelanto West 2 LLC (collectively the “Project Companies”), conducted a ~~non-brokered~~160 ~~private~~acre ~~placement,~~parcel ~~issuing a senior secured, promissory note (the “Note”) to one investor, Clean Focus Financing Company, LP (“Clean Focus”), for proceeds~~ of upvacant ~~to $4~~land,~~000,000~~ ~~(the~~situated ~~“Loan”).~~north ~~Pursuant to collateral assignment and pledge agreements, and a security agreement, the Note is secured by a first and superior security interest in Coronus’ assets, inclusive~~ of ~~all of Coronus’ right~~29-Palms, ~~title and interest~~ in, ~~to and under~~ the ~~sole~~County ~~member~~ of ~~the~~San ~~Project Companies~~Bernardino, ~~and~~California. ~~all~~The ofpurchase ~~Coronus’~~price ~~right,~~was ~~title and interest in~~$400,000. ~~to,~~The ~~and~~transaction ~~under,~~closed ifon ~~any,~~December ~~any contracts~~28, ~~permits, applications or other documents or agreements entered into or submitted by the Project Companies~~2012.

(v) Apple Valley East Re-Site (Nguyen) and (McGee)

On December 8, 2012, Coronus entered into a Vacant Land Purchase Agreement [the “Apple Valley East Re-Site Agreement (Nguyen)”] to acquire a 14.78 acre parcel of vacant land, situated east of Apple Valley, in the County of San Bernardino, California. The purchase price was $300,000. The transaction closed on January 7, 2013.

On February 8, 2013, Coronus entered into a Vacant Land Purchase Agreement [the “Apple Valley East Re-Site Agreement (McGee)”] to acquire a 8.91 acre parcel of vacant land, situated east of Apple Valley, in the County of San Bernardino, California. The purchase price was $100,000. The transaction closed on March 5, 2013.

Project developments costs

(i) Initial Posting of Interconnection Financial Security for Project Coronus 29-Palms North 1

On December 3, 2012, pursuant to the SCE interconnection request for solar PV project Coronus 29-Palms North 1, Coronus posted with SCE the initial interconnection financial security, in the amount of $29,500. This amount was determined by the results of the combined SIS/FAS study SCE commenced with Coronus on June 16, 2011.

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Table of Contents

CORONUS SOLAR INC.

(A Development Stage Enterprise)

Notes to Consolidated Financial Statements

(Expressed in U.S. Dollars)

~~Nine~~Period ~~Months~~ Ended ~~December~~June 3130, ~~2012~~2013

~~(Unaudited)~~Note 8 – Assets Held for Sale - Continued

~~Note~~(d) 15Project -Assets ~~Senior Secured Promissory Note~~ - Continued

Pursuant to a schedule of draw dates and amounts, Coronus was to request advances, in whole or in part, of up to the maximum amount of the Loan (each an “Advance”). The schedule of draw dates and amounts was as follows: $1,500,000 within two business days of signing of the Note and related loan documents; $500,000 on January 6, 2013; $1,000,000 on January 31, 2013; and $1,000,000 on February 28, 2013. On December 26, 2012, Coronus received the first Advance of $1,500,000, and on January 4, 2013, Coronus received the second Advance of $500,000. Pursuant to a guaranty of payment and completion (the “Guaranty”), the Company guarantees the punctual payment and performance when due, whether at stated maturity or by acceleration or otherwise, of the indebtedness and other obligations of Coronus and the Project ~~Companies.~~developments ~~Additionally,~~costs ~~pursuant~~- to the Guaranty, the Company guarantees that all obligations of Coronus and the Project Companies to continue development of the Project Companies’ projects shall be completed promptly when required, and that the proceeds of each Advance shall be used to pay certain obligations in furtherance of the Project Companies’ projects.Continued

~~The Note is due on the earlier of i) 31 days after the total Advances equal $4,000,000.00 or~~ (ii) ~~July~~Initial 1,Posting ~~2013 (the “Maturity Date”). The Note bears interest at an annual rate~~ of ~~6%,~~Interconnection ~~and~~Financial ~~such~~Security ~~interest~~for ~~shall~~Projects ~~accrue until the Maturity Date. On or before the Maturity Date, pursuant to the terms of a stock purchase agreement, yet to be drafted, the Company will transfer 100% ownership of~~ Coronus ~~and~~29-Palms ~~the~~North ~~Project~~2 Companies to Clean Focus or designee. Upon the transfer, all then outstanding Advances under the Loan, together with all accrued but unpaid interest, shall either be converted into capital contributions by Clean Focus or assumed as part of the stock purchase price. If the stock purchase does not occur on or before the Maturity Date, then the unpaid principal balance of the Note outstanding on the Maturity Date, together with all accrued and ~~unpaid interest on the principal balance shall be due and payable on the Maturity Date.~~3

InOn ~~connection~~December ~~with~~26, ~~the Loan~~2012, ~~Coronus~~pursuant ~~and the Project Companies shall pay up~~ to ~~$20,000 in costs and expenses incurred by Clean Focus in~~ the ~~preparation~~Southern ofCalifornia ~~the~~Edison ~~Note~~(“SCE”) ~~and~~interconnection ~~the~~requests ~~related~~for ~~loan~~solar ~~documents.~~PV ~~Additionally,~~projects ~~with each Advance, and from the proceeds of each Advance,~~ Coronus ~~was~~29-Palms toNorth ~~pay Clean Focus a fee equal to~~ 2% ofand ~~the principal amount of the Advance. In connection with the first Advance of $1~~3,~~500,000~~ ~~on December 26, 2012,~~ Coronus ~~paid~~posted ~~Clean~~with ~~Focus~~SCE the 2%initial ~~fee,~~interconnection orfinancial ~~$30~~securities,~~000,~~ ~~and~~ in ~~connection with~~ the ~~second~~amounts ~~Advance~~ of $~~500~~373,~~000~~300 onand ~~January 4~~$208, ~~2013~~900, ~~Coronus paid Clean Focus the 2% fee, or $10,000~~respectively. ~~Further,~~The inposting ~~connection~~amount ~~with~~for the ~~Loan, with each Advance, but not from the proceeds of each Advance, but from~~ Coronus’ ~~unallocated~~29-Palms ~~working~~North ~~capital,~~2 ~~Coronus~~project ~~shall~~was ~~pay~~determined ~~Earthlight~~by ~~Solar Inc. (“Earthlight”) a fee equal to 3% of~~ the ~~principal~~results ~~amount~~ of the ~~Advance.~~combined ~~Mark~~SIS/FAS ~~Burgert,~~study aSCE ~~control~~commenced ~~person of the Company, is the president and a control person of Earthlight. In connection~~ with ~~the~~Coronus ~~Loan,~~ on ~~behalf~~June ~~of Coronus~~16, ~~Earthlight acted as agent~~2011. InThe ~~connection~~posting ~~with~~amount for the ~~first Advance of $1,500,000 on December 26, 2012,~~ Coronus ~~paid~~29-Palms ~~Earthlight~~North ~~the~~ 3% ~~fee,~~project orwas ~~$45,000,~~determined ~~and~~by inthe ~~connection~~results ~~with~~of the ~~second~~combined ~~Advance~~SIS/FAS ofstudy ~~$500,000~~SCE oncommenced ~~January~~with ~~4, 2013,~~ Coronus ~~paid~~on ~~Earthlight~~February ~~the 3% fee~~29, ~~or $15,000~~2012.

On(iii) ~~January~~Initial ~~31,~~Posting ~~2013, parties amended the mechanics~~ of ~~the~~Interconnection ~~draw~~Financial ~~dates~~Security ~~and~~for ~~amounts~~Projects ~~under the Loan. Under the amended mechanics,~~ Coronus isApple toValley ~~provide~~East ~~Clean~~1 ~~Focus with invoices, supportive of the schedule,~~ and Clean Focus is to make the required payments direct to the payee, when due. The parties amended the mechanics of the draw dates and amounts to facilitate Clean Focus’ reporting with the U.S. Citizenship and Immigration Services, as the source of the Loan is EB-5 immigrant investor funds. All other aspects of the Loan mechanics remain unchanged. Accordingly, consistent with the original agreement with Earthlight, Coronus paid Earthlight its fee equal to 3%, or $30,000, of the originally scheduled principal amount of the third Advance.2

~~The~~On ~~financing~~December ~~cost~~27, on2012, ~~the~~pursuant ~~issuance~~to of the ~~senior~~SCE ~~secured~~interconnection ~~promissory~~requests ~~note,~~for ~~$75,000~~solar ~~($45,000~~PV ~~paid~~projects toApple ~~Earthlight~~Valley East 1 and ~~$30~~2,~~000~~ ~~paid~~Coronus toposted ~~Clean~~with ~~Focus),~~SCE ~~was~~the ~~capitalized~~initial ~~and~~interconnection ~~amortized~~financial ~~over~~securities, in the ~~life~~amounts of ~~the~~$270,900 ~~senior~~and ~~secured~~$32,900, ~~promissory note~~respectively. ~~During~~The posting amounts for the ~~period~~Apple ~~ended~~Valley ~~December~~East ~~31,~~1 ~~2012,~~and $2~~,406~~ ~~was~~projects ~~amortized~~were todetermined by the ~~statement~~results of ~~income~~the ~~and~~SIS atstudies ~~December~~SCE ~~31,~~commenced ~~2012,~~with anCoronus ~~accumulated~~on ~~amount~~May ~~of $2~~3,~~406~~ ~~was amortized~~2012.

(iv) Initial Posting of Interconnection Financial Security for Projects Coronus Joshua Tree East 1, 2, 3, 4 and 5

On January 9, 2013, pursuant to the SCE interconnection requests for solar PV projects Coronus Joshua Tree East 1, 2, 3, 4 and 5, Coronus posted with SCE the initial interconnection financial securities, in the amounts of $41,200, $82,400, $41,200, $58,800 and $141,200, respectively. The posting amounts for the Joshua Tree East 1, 2 and 3 projects were determined by the results of the SIS studies SCE commenced with Coronus on February 23, 2012. The posting amounts for the Joshua Tree East 4 and 5 projects were determined by the results of the SIS studies SCE commenced with Coronus on June 25, 2012.

(v) Second Posting of Interconnection Financial Security for Project Coronus 29-Palms North 1

On February 1, 2013, pursuant to the SCE interconnection request for solar PV project Coronus 29-Palms North 1, Coronus posted with SCE the second interconnection financial security, in the amount of $14,750. This amount was determined by the results of the combined SIS/FAS study SCE commenced with Coronus on June 16, 2011.

(vi) Initial Posting of Interconnection Financial Security for Projects Coronus Adelanto West 1 and 2

On February 14, 2013, pursuant to the SCE interconnection requests for solar PV projects Coronus Adelanto West 1 and 2, Coronus posted with SCE the initial interconnection financial securities, in the amounts of $36,660 and $38,260, respectively. The posting amounts for the Coronus Adelanto West 1 and 2 projects were determined by the results of the SIS studies SCE commenced with Coronus on April 13, 2012.

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Table of Contents

CORONUS SOLAR INC.

(A Development Stage Enterprise)

Notes to Consolidated Financial Statements

(Expressed in U.S. Dollars)

~~Nine~~Period ~~Months~~ Ended ~~December~~June 3130, ~~2012~~2013

~~(Unaudited)~~Note 8 – Assets Held for Sale - Continued

~~Note~~(d) 16Project Assets - ~~Stockholders’ Equity~~Continued

~~(a)~~Project ~~Common~~developments ~~Stock~~costs - Continued

~~On December 5, 2001, the Company~~ (ivii) ~~issued~~Initial ~~6,750,000~~Posting ~~common shares for cash to the founder and sole director~~ of ~~the~~Interconnection ~~Company~~Financial atSecurity ~~$0.0002 per share; (ii) issued 75,000 common shares~~ for ~~service~~Project toCoronus aYucca ~~party~~Valley ~~related~~East to the founder of the Company at $0.0525 per share; and (iii) issued 300,000 common shares for cash to the sole director of the Company pursuant to a private placement at $0.0525 per share. The Company recorded the 6,750,000 shares issued to the founder at fair value at $0.0525 per share and recorded a stock based compensation of $352,337.3

~~For~~On ~~the~~February ~~fiscal~~14 ~~year~~and ~~ended~~April ~~March 31~~15, ~~2003~~2013, ~~the~~pursuant ~~Company~~to ~~issued~~the ~~(i)~~SCE ~~235,294~~interconnection ~~units~~request for ~~cash~~solar atPV ~~$0.055~~project ~~per~~Coronus ~~unit~~Yucca ~~for~~Valley ~~total~~East ~~proceeds of $12~~3,~~916;~~ ~~(ii)~~Coronus ~~issued~~posted ~~500,004~~with ~~common~~SCE ~~shares~~the ~~for~~initial ~~cash~~and atsecond ~~$0.0725~~interconnection ~~per~~financial ~~share~~securities, ~~for~~in ~~total~~the ~~proceeds~~amounts of $3684,~~326;~~500 ~~(iii)~~and ~~issued 235~~$42,~~294~~250, ~~common~~respectively. ~~shares~~These ~~upon~~amounts were determined by the ~~exercise~~results of ~~warrants~~the ~~for~~SIS ~~cash~~study atSCE commenced with Coronus on June 25, 2012.

~~$0.055 per share for total proceeds of $12,916; and~~ (ivviii) ~~issued~~Second ~~22,222~~Posting ~~common shares for the settlement~~ of ~~debt~~Interconnection atFinancial ~~$0.0725~~Security ~~per share~~ for ~~the~~Projects ~~total~~Coronus ~~debt~~29-Palms ofNorth ~~$1,615.~~2 ~~In connection with the above unit issuance, each unit consisted of one common share~~ and one share purchase warrant with an exercise price at $0.055 per share. The Company adopted the residual approach and allocated the total proceeds to the common shares and $nil to the share purchase warrants.3

~~For~~On February 20, 2013, pursuant to the ~~fiscal~~SCE ~~year~~interconnection ~~ended~~requests ~~March~~for ~~31,~~solar ~~2004,~~PV ~~the~~projects ~~Company~~Coronus ~~(i)~~29-Palms ~~issued~~North ~~500~~2 and 3,~~006~~ ~~common~~Coronus ~~shares~~posted ~~for~~with ~~cash~~SCE atthe ~~$0.0835~~second ~~per~~interconnection ~~share~~financial ~~for~~securities, ~~total~~in ~~proceeds~~the amounts of $41156,~~644;~~350 and ~~(ii)~~$126,050, ~~issued~~respectively. ~~66,666~~The ~~common~~posting ~~shares~~amount for the ~~settlement~~Coronus 29-Palms North 2 project was determined by the results of the ~~debt~~combined atSIS/FAS $0study SCE commenced with Coronus on June 16, 2011.~~0835~~ The posting amount for the ~~total~~Coronus ~~debt~~29-Palms North 3 project was determined by the results of $5the combined SIS/FAS study SCE commenced with Coronus on February 29,~~552~~ 2012.

~~For the fiscal year ended March 31, 2005, the Company~~ (iix) ~~issued~~Initial ~~1,200,000~~Posting ~~units~~of ~~for~~Interconnection ~~cash~~Financial atSecurity ~~$0.039 per unit~~ for ~~total~~Projects ~~proceeds~~Coronus ofYucca ~~$47,054;~~Valley ~~and~~East ~~(ii) issued~~ 1~~,910,000~~ ~~common shares for cash at $0.039 per share for total proceeds of $74,895. Each unit consisted of one common share~~ and one share purchase warrant with an exercise price at $0.039 per share. The Company adopted the residual approach and allocated the total proceeds to the common stocks and $nil to the share purchase warrants.2

~~For~~On February 25, 2013, pursuant to the ~~fiscal~~SCE ~~year~~interconnection ~~ended~~requests ~~March~~for ~~31,~~solar ~~2006~~PV projects Coronus Yucca Valley East 1 and 2, Coronus posted with SCE the ~~Company~~initial ~~(i)~~interconnection ~~issued~~financial ~~300~~securities,~~000~~ ~~common~~in ~~shares~~the atamounts of $025,300 and $69,980, respectively.~~042~~ ~~per~~On ~~share~~April 26, 2013, pursuant to the ~~exercise~~SCE ofinterconnection ~~warrants~~requests for ~~total~~solar ~~proceeds~~PV ofprojects ~~$12,578;~~Coronus Yucca Valley East 1 and ~~(ii)~~2, ~~issued~~Coronus ~~395~~posted with SCE the second interconnection financial securities,~~600~~ ~~common~~in ~~shares~~the atamounts of $012,650 and $34,990, respectively.~~042~~ ~~per~~The ~~share~~posting amounts for the ~~settlement~~Coronus ofYucca ~~debt~~Valley East 1 and 2 projects were determined by the results of ~~$16~~the SIS studies SCE commenced with Coronus on February 2,~~586~~ 2012.

~~For~~Note ~~the~~9 ~~fiscal~~– ~~year ended March 31~~Property, ~~2007,~~Plant ~~the~~and ~~Company issued 1,000,000 common shares for cash at $0.044 per share for total proceeds of $43,948.~~Equipment

~~For~~Property, ~~the~~plant ~~fiscal~~and ~~year~~equipment ~~ended~~at ~~March~~June 3130, ~~2008,~~2013 ~~the~~and ~~Company~~March ~~issued 52~~31,~~500~~ ~~common~~2013 ~~shares~~were atsummarized ~~$0.0485~~as ~~per share for the settlement of debt of $2,548.~~follows:

On November 2, 2009, the Company issued 2,000,000 common shares in connection with the acquisition of all the issued and outstanding shares of Coronus at a deemed value of $0.025 per share. These shares were recorded, proportionately with the shares transferred by Mr. Jeff Thachuk to Mr. Mark Burgert, based on the fair value of the assets acquired.

				Accumulated		Net book
June 30, 2013		Cost		depreciation		value

Office equipment	$	1,305	$	1,195	$	110
Computer equipment		999		976		23
Land*		33,197		-		33,197
	$	35,501	$	2,171	$	33,330

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Table of Contents

CORONUS SOLAR INC.

(A Development Stage Enterprise)

Notes to Consolidated Financial Statements

(Expressed in U.S. Dollars)

~~Nine~~Period ~~Months~~ Ended ~~December~~June 3130, ~~2012~~2013

~~(Unaudited)~~Note 9 – Property, Plant and Equipment - Continued

Note 16 - Stockholders’ Equity - Continued

				Accumulated		Net book
March 31, 2013		Cost		depreciation		value

Office equipment	$	1,351	$	1,231	$	120
Computer equipment		1,034		1,008		26
Land*		126,856		-		126,856
	$	129,241	$	2,239	$	127,002

~~(a) Common Stock - Continued~~*Land

On(i) ~~January 21, 2011, the Company completed a non~~29-~~brokered~~Palms private placement, issuing 212,500 shares of common stock to eleven investors, at a price of CAD$0.402 per share, for gross proceeds of CAD$85,000. In connection with the completion of the private placement, the Company paid CAD$7,500 in finder’s fees in cash, to certain arm’s length parties, and CAD$6,807 in legal, accounting, transfer agent and filing fees.East

OnSuch ~~March~~represents ~~31,~~a ~~2011,~~30 ~~the~~acre ~~Company~~parcel ~~and~~of ~~its~~vacant ~~wholly-owned subsidiary~~land, ~~Coronus~~situated ~~Energy~~east ~~Corp.~~of ~~(“Coronus”), entered into a purchase agreement for utility~~29-~~scale~~Palms, ~~ground-mount,~~in ~~solar photovoltaic (“PV”) power systems (~~the ~~“Solar~~County ~~Power~~of ~~Systems~~San ~~Agreement”) with Belectric~~Bernardino, ~~Inc~~California. ~~(“Belectric”).~~The ~~Under~~purchase ~~the~~price ~~Solar~~was ~~Power Systems Agreement, Coronus agreed to acquire a total of 21 MW_ac of utility-scale, ground-mount, solar PV power systems from Belectric, for total consideration of~~ $7632,~~818,~~000~~, exclusive of taxes (the “Basic Price”)~~. OnAt ~~entering~~this ~~into~~point ~~the~~in ~~Solar Power Systems Agreement~~time, the Company ~~paid~~has ~~15%~~opted ofnot ~~the Basic Price, or $11,522,700, by way of issuing 10,974,000 shares of its common stock~~ to ~~Belectric,~~pursue atinterconnection aagreements ~~deemed~~for ~~value~~solar ofPV ~~$1.05~~power ~~per~~systems ~~share.~~sited ~~The~~on ~~fair~~this ~~value per share at the date of issuance was $0~~parcel.~~60. As a result, $6,584,400 was recorded under shareholders’ equity and construction in progress.~~

OnNote ~~May~~ 10, ~~2011,~~– ~~the~~Disposition ~~Company completed a non-brokered private placement~~ of ~~350,000 units at~~ a price of CAD $0.60 per unit for proceeds of CAD $210,000. Each unit was comprised of one common share in the capital of the Company and one non-transferrable share purchase warrant. Each warrant entitles the holder thereof to purchase a further common share at an exercise price of CAD $0.75 for a period of five years. The value assigned to the underlying warrants was CAD$90,000 ($93,652). See Note 16(c).subsidiary

On ~~October~~April 245, ~~2011~~2012, ~~the~~Coronus ~~Company~~entered ~~completed~~into a ~~non-brokered~~Solar ~~private~~Photovoltaic ~~placement~~Asset ofSale 17Agreement (the “Sycamore Solar PV Asset Sale Agreement”) with Sycamore Physicians Partners LLC (“Sycamore”). Under the Sycamore Solar PV Asset Sale Agreement,~~000~~ ~~units~~Coronus atagreed to sell, assign and transfer to Sycamore, Coronus’ sole membership in Coronus Hesperia West 1 LLC. On March 19, 2012, Coronus Hesperia West 1 LLC entered into a ~~price~~Power ofPurchase ~~CAD$0~~Agreement (“PPA”) with Southern California Edison (“SCE”).60 ~~per~~The ~~unit~~PPA relates to Coronus’ application for ~~gross~~interconnection ~~proceeds~~service ofand ~~CAD$10,200~~the CREST tariff for a 1.2 ~~Each~~MW ~~unit~~solar isPV ~~comprised~~power system on a 20 acre parcel of ~~one~~vacant ~~common~~land, ~~share~~situated west of Hesperia, in the ~~capital~~County of ~~the~~San ~~Company~~Bernardino, ~~and~~California, ~~one~~Coronus ~~non-transferrable~~agreed ~~share~~to acquire pursuant to a vacant land purchase ~~warrant.~~agreement ~~Each~~(the ~~warrant~~“Hesperia ~~entitles~~West Agreement”). Additionally, under the ~~holder~~Sycamore ~~thereof~~Solar toPV ~~purchase~~Asset aSale ~~further~~Agreement, ~~common~~Coronus ~~share~~agreed atto anassign ~~exercise~~to ~~price~~Sycamore, ofthe ~~CAD~~Hesperia $0West Agreement.75 ~~for~~Further, aunder ~~period~~the ofSycamore ~~five~~Solar ~~years.~~PV ~~The~~Asset ~~value~~Sale ~~assigned~~Agreement, Coronus agreed to use its best efforts to obtain a second PPA from SCE in relation to the ~~underlying~~Hesperia ~~warrants~~West ~~was~~20 ~~CAD$4~~acre parcel,~~470~~ and to sell this PPA (~~$4,452)~~relating to a 1.5 ~~See~~MW ~~Note~~solar ~~16(c~~PV system) to Sycamore if obtained.

OnUnder ~~August 15, 2012,~~ the ~~Company~~Sycamore ~~amended~~Solar ~~the~~PV ~~purchase~~Asset ~~agreement~~Sale ~~for utility-scale~~Agreement, ~~ground-mount,~~Sycamore ~~solar~~agreed ~~photovoltaic~~to ~~(PV)~~pay ~~power~~$1,726,219 ~~systems~~ (the “~~Solar~~Basic ~~Power Systems Agreement~~Price”), ~~the~~to ~~Company~~Coronus ~~entered~~for ~~into~~the ~~with~~sole ownership in Coronus ~~and~~Hesperia ~~Belectric~~West ~~Inc.~~1 ~~(“Belectric”)~~LLC, onthe ~~March~~assignment ~~31,~~of ~~2011~~the ~~[see~~Hesperia ~~Note~~West ~~19(a)].~~Agreement, ~~Under~~and the ~~amended~~second ~~agreement~~PPA. (On executing the ~~“Amended~~Sycamore Solar ~~Power~~PV ~~Systems~~Asset Sale Agreement”), 9Sycamore agreed to pay $817,~~876~~200 (paid) to Coronus,~~600~~ ofand Coronus agreed to transfer the ~~Original~~sole ~~Payment~~membership ~~Shares~~in ~~were~~Coronus ~~cancelled~~Hesperia onWest ~~August~~1 ~~15,~~LLC ~~2012,~~to atSycamore and to assign the ~~deemed~~Hesperia ~~price~~West ofAgreement $1to Sycamore.05 ~~per~~Under ~~share.~~the ~~The~~Sycamore ~~fair~~Solar ~~value~~PV ~~per~~Asset ~~share~~Sale atAgreement, Sycamore agreed to pay the ~~date~~balance of ~~cancellation~~the ~~was~~Basic Price, or $0909,019 (paid), to Coronus on delivery of the second PPA.~~60.~~

As at December 31, 2012, 10,226,900 (March 31, 2012: 20,103,500) shares of the Company’s common stock were restricted shares.

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Table of Contents

CORONUS SOLAR INC.

(A Development Stage Enterprise)

Notes to Consolidated Financial Statements

(Expressed in U.S. Dollars)

~~Nine~~Period ~~Months~~ Ended ~~December~~June 3130, ~~2012~~2013

~~(Unaudited)~~Note 10 – Disposition of a subsidiary - Continued

~~Note~~The 16Company -recorded ~~Stockholders’~~a ~~Equity~~gain -on ~~Continued~~the sale of Coronus Hesperia West 1 LLC and Coronus Hesperia West 2 LLC of $1,717,024 during the year ended March 31, 2013. Details are as follows:

(b) Stock Options

Cash consideration	$	1,726,219
Less: net book value of assets sold		9,195
	$	1,717,024

~~Since~~As ~~inception~~at June 30, 2012, the Company ~~has~~recognized ~~entered~~a ~~into~~gain ~~various~~on ~~stock~~the ~~option~~sales ~~agreements~~of ~~with~~Coronus ~~its~~Hesperia ~~directors,~~West ~~employees~~1 ~~and~~LLC ~~consultants~~in the amount of $80,994.

~~During~~Note ~~the~~11 ~~period~~– ~~ended~~Liabilities ~~December~~Held ~~31,~~for ~~2012 and year ended March 31, 2012, there were no options granted or exercised.~~Sale

~~Changes~~The inliabilities ~~stock~~held ~~options~~ for ~~the~~sale ~~period ended December 31, 2012 and year ended March 31, 2012~~ are summarized as follows:

		Options Outstanding
		June 30,
					Weighted average
		2013
		Number of			exercise
Accounts payable and accrued liabilities	$	147,808
		shares			price
Senior secured promissory note (a)		3,358,598
Balance, March 31, 2012 and 2011			745,000		$	0.065
Notes payable (b)		579,014
Expired			(5,000	)		0.105
	$	4,085,420
Balance, December 31, 2012			740,000		$	0.065

~~The~~(a) ~~Company~~Senior ~~has~~Secured ~~the~~Promissory ~~following options outstanding and exercisable at December 31, 2012:~~Note

			Outstanding				Exercisable
		June 30,
				Weighted
		2013
			Number	Average		Weighted	Number		Weighted
Principle	$	3,314,032
	Range of		Outstanding at	Remaining		Average	Exercisable at		Average
Effective interest rate at 6.66%		(206,280)
	Exercise		December 31,	Contractual		Exercise	December 31,		Exercise
Net present value		3,107,752
	Prices		2012	Life (Years)		Price	2012		Price
Interest accretion		250,846
$	0.065		740,000	2.90	$	0.065	740,000	$	0.065
Total	$	3,358,598

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Table of Contents

CORONUS SOLAR INC.

(A Development Stage Enterprise)

Notes to Consolidated Financial Statements

(Expressed in U.S. Dollars)

~~Nine~~Period ~~Months~~ Ended ~~December~~June 3130, ~~2012~~2013

~~(Unaudited)~~Note 11 – Liabilities Held for Sale - Continued

~~Note~~(a) 16Senior -Secured ~~Stockholders’~~Promissory ~~Equity~~Note - Continued

On December 20, 2012, Coronus and Coronus’ wholly-owned subsidiaries, Coronus 29-Palms North 1 LLC, Coronus 29-Palms North 2 LLC, Coronus 29-Palms North 3 LLC, Coronus Yucca Valley East 1 LLC, Coronus Yucca Valley East 2 LLC, Coronus Yucca Valley East 3 LLC, Coronus Joshua Tree East 1 LLC, Coronus Joshua Tree East 2 LLC, Coronus Joshua Tree East 3 LLC, Coronus Joshua Tree East 4 LLC, Coronus Joshua Tree East 5 LLC, Coronus Apple Valley East 1 LLC, Coronus Apple Valley East 2 LLC, Coronus Adelanto West 1 LLC, and Coronus Adelanto West 2 LLC (bcollectively the “Project Companies”), ~~Stock~~conducted ~~Options~~a –non-brokered ~~Continued~~private placement, issuing a senior secured, promissory note (the “Note”) to one investor, Clean Focus Financing Company, LP (“Clean Focus”), for proceeds of up to $4,000,000 (the “Loan”). Pursuant to collateral assignment and pledge agreements, and a security agreement, the Note is secured by a first and superior security interest in Coronus’ assets, inclusive of all of Coronus’ right, title and interest in, to and under the sole member of the Project Companies, and all of Coronus’ right, title and interest in, to, and under, if any, any contracts, permits, applications or other documents or agreements entered into or submitted by the Project Companies.

~~The~~Pursuant ~~Company~~to ~~has~~a schedule of draw dates and amounts, Coronus was to request advances, in whole or in part, of up to the ~~following~~maximum ~~options~~amount ~~outstanding~~of the Loan (each an “Advance”). The schedule of draw dates and ~~exercisable~~amounts atwas ~~March~~as follows: $1,500,000 within two business days of signing of the Note and related loan documents; $500,000 on January 6, 2013; $1,000,000 on January 31, 2013; and $1,000,000 on February 28, 2013. On December 26, 2012:, Coronus received the first Advance of $1,500,000, and on January 4, 2013, Coronus received the second Advance of $500,000. Pursuant to a guaranty of payment and completion (the “Guaranty”), the Company guarantees the punctual payment and performance when due, whether at stated maturity or by acceleration or otherwise, of the indebtedness and other obligations of Coronus and the Project Companies. Additionally, pursuant to the Guaranty, the Company guarantees that all obligations of Coronus and the Project Companies to continue development of the Project Companies’ projects shall be completed promptly when required, and that the proceeds of each Advance shall be used to pay certain obligations in furtherance of the Project Companies’ projects.

		Outstanding				Exercisable
			Weighted
		Number	Average		Weighted	Number		Weighted
	Range of	Outstanding at	Remaining		Average	Exercisable at		Average
	Exercise	March 31,	Contractual		Exercise	March 31,		Exercise
	Prices	2012	Life (Years)		Price	2012		Price
$	0.065	740,000	3.65	$	0.065	740,000	$	0.065
	0.105	5,000	0.11		0.105	5,000		0.105
$	0.065 - $0.105	745,000	3.63	$	0.065	745,000	$	0.065

The Note bears interest at an annual rate of 6%, and such interest shall accrue until the Maturity Date.

In connection with the Loan, Coronus and the Project Companies shall pay up to $20,000 in costs and expenses incurred by Clean Focus in the preparation of the Note and the related loan documents. Additionally, with each Advance, and from the proceeds of each Advance, Coronus was to pay Clean Focus a fee equal to 2% of the principal amount of the Advance. In connection with the first Advance of $1,500,000 on December 26, 2012, Coronus paid Clean Focus the 2% fee, or $30,000, and in connection with the second Advance of $500,000 on January 4, 2013, Coronus paid Clean Focus the 2% fee, or $10,000. Further, in connection with the Loan, with each Advance, but not from the proceeds of each Advance, but from Coronus’ unallocated working capital, Coronus was to pay Earthlight Solar Inc. (c“Earthlight”) ~~Warrants~~a fee equal to 3% of the principal amount of the Advance. Mark Burgert, a shareholder of the Company, is the president and a control person of Earthlight. In connection with the Loan, on behalf of Coronus, Earthlight acted as agent. In connection with the first Advance of $1,500,000 on December 26, 2012, Coronus paid Earthlight the 3% fee, or $45,000, and in connection with the second Advance of $500,000 on January 4, 2013, Coronus paid Earthlight the 3% fee, or $15,000.

On May 10, 2011, the Company completed a non-brokered private placement, issuing 350,000 units (the “Units”), at a price of CAD$0.60 per Unit, for proceeds of CAD$210,000. Each Unit was comprised of one common share in the capital of the Company and one non-transferrable share purchase warrant. Each warrant entitles the holder thereof to purchase a further common share at an exercise price of CAD$0.75 for a period of five years. The Company determined the fair value of the warrants to be $0.257 per warrant using the Black-Scholes option pricing model.

On October 24, 2011, the Company completed a non-brokered private placement of 17,000 units at a price of CAD$0.60 per unit for gross proceeds of CAD$10,200. Each unit is comprised of one common share in the capital of the Company and one non-transferrable share purchase warrant. Each warrant entitles the holder thereof to purchase a further common share at an exercise price of CAD $0.75 for a period of five years. The Company determined the fair value of the warrants to be $0.263 per warrant using the Black-Scholes option pricing model.

On February 2, 2012, the Company issued a convertible promissory note for CAD$50,000 and 83,333 transferrable warrants for gross proceeds of CAD$50,000. On February 23, 2012, the Company issued a second convertible promissory note for CAD$50,000 and a further 83,333 transferrable warrants for gross proceeds of CAD$50,000. These convertible promissory notes, totalling CAD$100,000, matured on February 2, 2013, and bore an annual interest rate of 12%. The holders of the notes could convert the note and accrued interest, at or before the maturity date, into common shares of the Company at CAD$0.60 each. Each warrant entitles the holder thereof to purchase a further common share of the Company at an exercise price of CAD$0.75 for a period of five years. The Company determined the fair value of the warrants to be CAD$0.7816 per warrant using the Black-Scholes option pricing model.

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Table of Contents

CORONUS SOLAR INC.

(A Development Stage Enterprise)

Notes to Consolidated Financial Statements

(Expressed in U.S. Dollars)

~~Nine~~Period ~~Months~~ Ended ~~December~~June 3130, ~~2012~~2013

~~(Unaudited)~~Note 11 – Liabilities Held for Sale - Continued

~~Note~~(a) 16Senior -Secured ~~Stockholders’~~Promissory ~~Equity~~Note - Continued

~~(c)~~On ~~Warrants~~January 31, 2013, the parties amended the mechanics of the draw dates and amounts under the Loan. Under the amended mechanics, Coronus was to provide Clean Focus with invoices, supportive of the schedule, and Clean Focus was to make the required payments direct to the payee, when due. With each direct payment, Coronus was to credit Clean Focus its fee equal to 2% of the principal amount of the payment. The parties amended the mechanics of the draw dates and amounts to facilitate Clean Focus’ reporting with the U.S. Citizenship and Immigration Services, as the source of the Loan is EB-5 ~~Continued~~immigrant investor funds. All other aspects of the Loan mechanics remained unchanged. Accordingly, consistent with the original agreement with Earthlight, on February 6, 2013, Coronus paid Earthlight its fee equal to 3%, or $30,000, of the originally scheduled principal amount of the third Advance, and on March 11, 2013, Coronus paid Earthlight its fee equal to 3%, or $30,000, of the originally scheduled principal amount of the fourth and final Advance.

The ~~fair~~unpaid ~~value~~principal balance of the ~~warrants~~Note ~~issued~~as ~~during~~at June 30, 2013 was $3,314,032. During the ~~year~~period ended June 30, 2013, $50,338 (2012: $nil) in interest expense has been accrued. As of June 30, 2013, the financing cost on the issuance of the senior secured promissory note, $206,280 [March 31, ~~2012~~2013: $200,032 ($120,000 paid to Earthlight and $80,032 paid to Clean Focus)], was ~~estimated~~capitalized ~~using~~and amortized over the ~~Black-Scholes~~life ~~option~~of ~~pricing~~the ~~model~~senior ~~with~~secured promissory note. During the ~~following~~period ~~weighted~~ended ~~average~~June ~~assumptions~~30, 2013, $100,003 (2012: $nil) was amortized.

	Year ended
	March 31, 2012
Expected volatility	100.13% - 105.17%
Risk free interest rate	1.10% - 1.91%
Expected life	5 years
Dividend yield	0.00%

On August 9, 2013, the Company and Coronus entered into a share purchase and development services agreement (the “Share Purchase and Development Services Agreement”) with Redwood Solar Development LLC (“Redwood”) [see Note 18(b)]. Under the Share Purchase and Development Services Agreement, the Company has agreed to sell 100% of the issued and outstanding shares of Coronus to Redwood, in addition to performing certain development services in respect of the twelve anticipated, utility-scale, solar PV projects of Coronus. The Company is scheduled to hold an annual and special meeting of its shareholders (the “Meeting”) on September 16, 2013, at which time, its shareholders will vote, by proxy or in person, on whether to approve the Share Purchase and Development Services Agreement. The closing date (the “Closing Date”) means the date on which the closing will occur, which will be not more than three business days following the date of the Meeting.

~~The~~If ~~relative~~the ~~estimated~~required ~~fair~~percentages ~~value~~ of shareholder votes are met under the ~~warrants~~Share inPurchase ~~relation~~and toDevelopment Services Agreement, upon the ~~private~~transfer ~~placements~~of inCoronus ~~May~~to ~~2011~~Redwood, ~~October~~all ~~2011~~then outstanding Advances under the Loan, together with all accrued but unpaid interest, will be assumed as part of the stock purchase price. In the event the required percentages of shareholder votes are not met under the Share Purchase and ~~February~~Development ~~2012~~Services ~~were~~Agreement, ~~CAD~~the Company shall owe Redwood a break-up fee of $905,000 ~~(USD$90~~,~~628)~~000, ~~CAD$4~~which will be immediately due and payable. In addition,~~470~~ ~~(USD$4~~the Loan will be in immediate default,~~501),~~ and ~~CAD$56~~will become due and payable,~~571~~ ~~(USD$56~~with the Company confessing judgment to the immediate exercise of remedies allowed with respect to the default of the Loan,~~966)~~ including, ~~respectively~~without limitation, ~~and~~a ~~were~~declaration ~~allocated~~of toforeclosure on the ~~additional~~Coronus ~~paid-in~~land ~~capital~~parcels and the seizure of all assets of Coronus.

During the period ended December 31, 2012, the Company did not issue any warrants. At December 31, 2012, 533,666 warrants remained outstanding.

The Company has the following warrants outstanding at December 31, 2012:

								Exercise	Average
Balance	Issued	Exercised	Cancelled	Balance		Exercise		price	Remaining
as at	during the	during the	during the	as at		price		(USD	Contractual
3/31/2012	period	period	period	12/31/2012		(CAD)		equivalent)	Life in Years
350,000	-	-	-	350,000	$	0.75	$	0.75	3.36
17,000	-	-	-	17,000	$	0.75		0.75	3.82
166,666	-	-	-	166,666	$	0.75		0.75	4.09
533,666	-	-	-	533,666	$	0.75	$	0.75	3.60

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Table of Contents

CORONUS SOLAR INC.

(A Development Stage Enterprise)

Notes to Consolidated Financial Statements

(Expressed in U.S. Dollars)

~~Nine~~Period ~~Months~~ Ended ~~December~~June 3130, ~~2012~~2013

~~(Unaudited)~~Note 11 – Liabilities Held for Sale - Continued

~~Note~~(a) 16Senior -Secured ~~Stockholders’~~Promissory ~~Equity~~Note - Continued

On August 9, 2013, by way of addendum (cthe “Loan Addendum”), ~~Warrants~~the -Maturity ~~Continued~~Date under the Loan was extended. The Note is now due on the earlier of i) the date of the Meeting, in the event that the Share Purchase and Development Services Agreement is not approved at the Meeting, or ii) the close of business on the Closing Date as defined in the Share Purchase and Development Services Agreement [see Note 16(b)].

~~The~~(b) ~~Company~~Notes ~~has the following warrants outstanding at March 31, 2012:~~Payable

						Exercise	Average
Balance	Issued	Exercised	Cancelled	Balance	Exercise	price	Remaining
as at	during the	during the	during the	as at	price	(USD	Contractual
3/31/2011	period	period	period	3/31/2012	(CAD)	equivalent)	Life in Years
-	350,000	-	-	350,000	$0.75	$0.74	4.11
-	17,000	-	-	17,000	$0.75	$ 0.74	4.57
-	166,666	-	-	166,666	$0.75	$0.74	4.88
-	533,666	-	-	533,666	$0.75	$0.74	4.37

Notes payable at June 30, 2013 is summarized as follows:

The warrants are not a derivative instrument.

		June 30,		March 31,
Vacant Land		2013		2013

Joshua Tree East	$	-	$	170,000
Adelanto West		235,534		235,534
Yucca Valley East		136,380		136,380
Newberry Springs		-		37,100
Newberry Springs	$	37,100	$	-
Joshua Tree East		170,000		-
29-Palms North		-		32,084
AppleValley East (Nguyen)		-		200,000

Total	$	579,014	$	811,098

~~Note~~On March 17, 2011, Coronus completed the Newberry Springs Vacant Land Purchase Agreement to acquire a 20 acre parcel of vacant land, situated in Newberry Springs, in the County of San Bernardino, California. The vendor agreed to carry back the balance amount of $37,000 for two years at 6.5% per annum interest, with monthly payments of interest only. On May 9, 2013, the parties agreed on a one-year ~~Contingent~~extension ~~Liabilities~~to the balance amount note. All other terms remain the same, and monthly interest will continue to be paid throughout the extension. At June 30, 2013, the Company has accrued interest payable of $100 (March 31, 2013: $100).

~~Management~~On ofMay 16, 2011, Coronus completed the ~~Company~~29-Palms ~~has~~North ~~opted~~Vacant ~~for~~Land ~~the~~Purchase ~~Company~~Agreement to ~~self~~acquire a 39.25 acre parcel of vacant land, situated north of 29-~~insure~~Palms, ~~against~~in ~~business~~the ~~and~~County ~~liability~~of ~~risks~~San ~~rather~~Bernardino, ~~than~~California. ~~purchase~~The ~~third~~vendor ~~party~~agreed ~~insurance~~to ~~coverage~~carry back the balance amount of $32,000 for two years at 6.5% ~~Consequently~~per annum interest, with monthly payments of interest only. On May 17, 2013, Coronus paid the ~~Company~~balance isamount ~~exposed~~of to$32,000, ~~financial~~retiring ~~losses~~the orvendor's ~~failure~~note. asAt aJune ~~result~~30, 2013, the Company has accrued interest payable of ~~these~~$nil ~~risks~~(March 31, 2013: $84).

Note 18 - Related Party Transactions

During the three months and nine months ended December 31, 2012, the Company paid $nil (2011: $nil) and $300 (2011: $413) in director fees to the directors of the Company, respectively.

During the three months and nine months ended December 31, 2012, $nil (2011 management fees: $24,030) and $nil (2011 management fees: $62,528) of management fees were accrued, respectively. Effective April 1, 2012, the executive officer is remunerated by payroll.

As at December 31, 2012, included in accounts payable, $305 (March 31, 2012: $49,233) was owed to a director of the Company.

As at December 31, 2012, included in notes payable, $nil (March 31, 2012: $17,991) was accrued as interest payable for loan from a director of the Company.

See also Note 11 and Note 19(h).

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Table of Contents

CORONUS SOLAR INC.

(A Development Stage Enterprise)

Notes to Consolidated Financial Statements

(Expressed in U.S. Dollars)

~~Nine~~Period ~~Months~~ Ended ~~December~~June 3130, ~~2012~~2013

~~(Unaudited)~~Note 11 – Liabilities Held for Sale - Continued

~~Note~~(b) 19Notes –Payable ~~Commitments~~- Continued

~~(a)~~On June 30, 2011, Coronus completed the Joshua Tree East Vacant Land Purchase Agreement to acquire a 56.03 acre parcel of ~~Solar~~vacant ~~Photovolatic~~land, ~~Power~~situated ~~Systems~~east of Joshua Tree, in the County of San Bernardino, California. The vendor agreed to carry back the balance amount of $170,000 for three years at 6.5% per annum interest, with monthly payments of interest only. At June 30, 2013, the Company has accrued interest payable of $nil (March 31, 2013: $nil).

On ~~March~~April 3119, ~~2011~~2012, ~~the Company and~~ Coronus ~~entered~~completed ~~into a purchase agreement for utility-scale, ground-mount, solar photovoltaic (“PV”) power systems (~~the ~~“Solar~~Adelanto ~~Power~~West ~~Systems~~Vacant ~~Agreement”)~~Land ~~with~~Purchase ~~Belectric, Inc. (“Belectric”). Under the Solar Power Systems~~ Agreement, ~~Coronus agreed~~ to acquire a ~~total~~40 ofacre 21parcel ~~MW_ac~~ of ~~utility-scale,~~vacant ~~ground-mount~~land, ~~solar~~situated PVin ~~power~~the ~~systems~~City ~~from Belectric, for total consideration~~ of ~~$76~~Adelanto,~~818,000,~~ ~~exclusive~~County of ~~taxes~~San ~~(the~~Bernardino, ~~“Basic Price”)~~California. OnThe ~~entering~~vendor ~~into~~agreed ~~the~~to ~~Solar~~carry ~~Power~~back ~~Systems Agreement,~~ the ~~Company~~balance ~~paid~~amount ~~15%~~ of ~~the Basic Price, or~~ $11235,~~522,700, by way of issuing 10,974,~~000 ~~shares~~for ofthree ~~its~~years ~~common stock to Belectric,~~ at ~~a deemed price of $1~~6.055% per ~~share.~~annum ~~The~~interest, ~~fair~~with ~~value~~monthly ~~per~~payments ~~share at the date~~ of ~~issuance~~interest ~~was $0~~only.~~60.~~ AsAt aJune ~~result~~30, $62013,~~584,400~~ ~~was~~the ~~recorded~~Company ~~under~~has ~~shareholders’~~accrued ~~equity~~interest ~~and~~payable ~~construction~~of in$534 ~~progress~~(March ~~when~~31, ~~the~~2013: ~~agreement was first entered into~~$534).

On August 1517, 2012, ~~the~~Coronus ~~Company~~completed ~~amended~~ the ~~purchase~~Yucca ~~agreement~~Valley ~~for~~East ~~the~~Vacant ~~Solar~~Land ~~Power~~Purchase ~~Systems with Belectric. Under the amended agreement (the “Amended Solar Power Systems~~ Agreement~~”),~~ ~~the provision of Coronus~~ to ~~purchase~~acquire a ~~total~~34.07 ofacre 21parcel MW of ~~utility-scale,~~vacant ~~ground-mount~~land, ~~solar~~situated PVeast ~~power systems from Belectric, for consideration~~ of ~~$76,818,000,~~Yucca ~~exclusive of taxes (the “Original Basic Price”)~~Valley, ~~was modified. Under the Amended Solar Power Systems Agreement, Coronus and Belectric agree to negotiate,~~ in ~~good faith,~~ the ~~purchase~~County ~~price~~ of ~~solar~~San ~~power~~Bernardino, ~~systems on a per solar power system basis (the “Purchase and Sale Agreements”)~~California. The ~~Amended~~vendor ~~Solar~~agreed ~~Power~~to ~~Systems~~carry ~~Agreement~~back isthe ~~effective~~balance asamount of ~~August 15~~$136,000 ~~2012, and shall remain in full force and effect~~ for ~~three~~two years ~~(the~~at ~~“Three~~6.5% ~~Year~~per ~~Term”)~~annum interest, ~~but~~with ~~shall~~monthly ~~expire~~payments ~~prior to the Three Year Term provided Coronus and Belectric enter into Purchase and Sale Agreements totaling 100 MW~~ of ~~solar~~interest ~~power~~only. ~~systems~~At ~~prior~~June to30, ~~the~~2013, ~~expiry of~~ the ~~Three~~Company ~~Year~~has ~~Term.~~accrued ~~Further,~~interest ~~throughout~~payable ~~the term~~ of ~~the~~$380 ~~Amended~~(March ~~Solar Power Systems Agreement~~31, ~~Belectric~~2013: ~~retains the exclusive right to negotiate Purchase and Sale Agreements with Coronus for solar power systems~~$380).

On ~~entering~~December ~~into~~8, ~~the~~2012, ~~original~~Coronus ~~Solar~~entered ~~Power~~into ~~Systems~~a Vacant Land Purchase Agreement, [the ~~Company~~“Apple ~~paid~~Valley ~~15%~~East ofRe-Site ~~the~~Agreement ~~Original~~(Nguyen)”] ~~Basic~~to ~~Price,~~acquire ora ~~$11,522,700,~~14.78 byacre ~~way~~parcel of ~~issuing~~vacant 10land,~~974,000~~ ~~shares~~situated ~~(the~~east ~~“Original~~of ~~Payment~~Apple ~~Shares”)~~Valley, ofin ~~its~~the ~~common~~County ~~stock~~of toSan ~~Belectric~~Bernardino, atCalifornia. aThe ~~deemed~~purchase price ofwas $1300,000.05 ~~per~~Coronus ~~share.~~paid ~~Under~~$100,000 and the ~~Amended~~vendor ~~Solar~~agreed ~~Power~~to ~~Systems~~carry ~~Agreement,~~back asthe ~~additional~~balance ~~purchase~~amount ~~and~~of ~~sale consideration~~$200,000 ~~Belectric~~for ~~kept~~three ~~1,097,400~~months ofat ~~the~~0% ~~Original~~interest. ~~Payment~~The ~~Shares.~~transaction ~~Accordingly~~closed on January 7, 92013,~~876,600~~ ofand ~~the~~on ~~Original~~April ~~Payment~~3, ~~Shares~~2013, ~~were~~Coronus ~~cancelled~~paid onout ~~August~~the 15balance amount of $200,000, ~~2012~~retiring the note.

~~(b)~~Note ~~Advisory~~12 ~~Service~~– ~~Agreement~~Stockholders’ Equity

~~On August 8, 2011, the Company entered into a financial advisory service agreement~~ (~~the “Advisory Agreement”~~a) ~~with~~Common Source Capital Group Inc (“SCG”). Under the Advisory Agreement, SCG shall use its best efforts to provide up to $80,000,000 in financing (the “Financing”) for the Company and/or the Company’s affiliates. The financing may consist of debt (the “Debt Financing”) or equity (the “Equity Financing”) or both. Under the Advisory Agreement, SCG shall be compensated 6% cash and 6% 5 year warrants priced at 100% of any offering price on any Equity Financing raised by SCG. In addition, SCG shall be compensated 3% cash on any Debt Financing raised by SCG.Stock

AsOn at December 315, ~~2012~~2001, ~~$nil~~the Company (~~March~~i) 31issued 6,750,000 ~~2012:~~common shares for cash to the founder and sole director of the Company at $200.0002 per share; (ii) issued 75,000) ~~had~~common ~~been~~shares ~~expensed~~for service to a party related to the ~~advisory~~founder ~~service~~of ~~agreement~~the Company at $0.0525 per share; and (iii) issued 300,000 common shares for cash to the sole director of the Company pursuant to a private placement at $0.0525 per share. The Company recorded the 6,750,000 shares issued to the founder at fair value at $0.0525 per share and recorded a stock based compensation of $352,337.

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Table of Contents

CORONUS SOLAR INC.

(A Development Stage Enterprise)

Notes to Consolidated Financial Statements

(Expressed in U.S. Dollars)

~~Nine~~Period ~~Months~~ Ended ~~December~~June 3130, ~~2012~~2013

~~(Unaudited)~~Note 12 – Stockholders’ Equity - Continued

~~Note~~(a) 19Common –Stock ~~Commitments~~ - Continued

For the fiscal year ended March 31, 2003, the Company issued (bi) ~~Advisory~~235,294 ~~Service~~units ~~Agreement~~for -cash ~~Continued~~at $0.055 per unit for total proceeds of $12,916; (ii) issued 500,004 common shares for cash at $0.0725 per share for total proceeds of $36,326; (iii) issued 235,294 common shares upon the exercise of warrants for cash at $0.055 per share for total proceeds of $12,916; and (iv) issued 22,222 common shares for the settlement of debt at $0.0725 per share for the total debt of $1,615. In connection with the above unit issuance, each unit consisted of one common share and one share purchase warrant with an exercise price at $0.055 per share. The Company adopted the residual approach and allocated the total proceeds to the common shares and $nil to the share purchase warrants.

~~The~~For ~~term of~~ the ~~Advisory~~fiscal ~~Agreement~~year isended ~~120~~March ~~days~~31, ~~from August 8~~2004, ~~2011 (~~the ~~“Expiration~~Company ~~Date”~~(i), ~~and~~issued ~~will~~500,006 becommon ~~automatically~~shares ~~renewed~~for oncash aat ~~monthly basis until canceled in writing by either the Company or SCG~~$0.0835 ~~The~~per ~~Advisory~~share ~~Agreement~~for ~~may~~total beproceeds ~~terminated~~of ~~upon~~$41,644; 60and ~~days~~(ii) ~~written~~issued ~~notice~~66,666 ~~without~~common ~~cause~~shares byfor ~~either~~ the ~~Company~~settlement orof ~~SCG~~the debt at ~~any~~$0.0835 ~~time~~for ~~before~~ the ~~Expiration~~total ~~Date~~debt of $5,552.

~~Under~~For the ~~original~~fiscal ~~Advisory~~year ~~Agreement~~ended March 31, 2005, the Company’s ~~relationship~~(i) ~~with~~issued ~~SCG~~1,200,000 ~~was~~units ~~exclusive~~for cash at $0.039 ~~Effective~~per ~~December~~unit 8for total proceeds of $47,054; ~~2011~~and (ii) issued 1,910,000 ~~the~~common ~~relationship~~shares for cash at $0.039 per share for total proceeds of $74,895. Each unit consisted of one common share and one share purchase warrant with ~~SCG~~an isexercise noprice ~~longer~~at ~~exclusive~~$0.039 per share. The Company adopted the residual approach and allocated the total proceeds to the common stocks and $nil to the share purchase warrants

For the fiscal year ended March 31, 2006, the Company (ci) ~~Acquisition~~issued 300,000 common shares at $0.042 per share pursuant to the exercise of ~~Vacant~~warrants ~~Land~~for total proceeds of $12,578; and (ii) issued 395,600 common shares at $0.042 per share for the settlement of debt of $16,586.

~~(i)~~For ~~Phelan~~the ~~South~~fiscal ~~Agreement~~year ended March 31, 2007, the Company issued 1,000,000 common shares for cash at $0.044 per share for total proceeds of $43,948.

OnFor ~~April 25, 2012, Coronus entered into a Vacant Land Purchase Agreement (~~the ~~“Phelan~~fiscal ~~South~~year ~~Agreement”)~~ended toMarch ~~acquire a 40 acre parcel of vacant land~~31, ~~situated in Phelan~~2008, ~~an unincorporated community in~~ the ~~County~~Company ofissued ~~San Bernardino~~52,500 ~~California.~~common ~~The~~shares ~~purchase~~at ~~price is~~ $~~350,000, all cash~~0.0485 ~~Coronus~~per ~~deposited~~share ~~$1,000~~for into escrow and agrees to deposit an additional $349,000 within sufficient time to close escrow. Initially, close of escrow was August 15, 2012, but was extended to September 15, 2012 and further extended to March 15, 2013. Under the ~~Phelan~~settlement ~~South Agreement, the Seller agrees to include, and transfer to Coronus, one share~~ of ~~Sheep~~debt ~~Creek Water Co. Additionally, on closing, Coronus agrees to pay the realtor commission~~ of $52,~~000~~548. Initially, the Phelan South Agreement was subject to Coronus’ Board of Director approval on or before July 31, 2012, but this approval was extended to on or before August 31, 2012 and further extended to on or before February 28, 2013. Additionally, Coronus is now required to make the following, non-refundable payments to the Seller, separate from the purchase price:

~~September~~On 30November 2, ~~2012~~2009, -the Company issued 2,000,000 common shares in connection with the acquisition of all the issued and outstanding shares of Coronus at a deemed value of $10.025 per share. These shares were recorded,~~726~~ ~~(paid~~proportionately onwith ~~September~~the 30shares transferred by Mr. Jeff Thachuk to Mr. Mark Burgert, ~~2012)~~based on the fair value of the assets acquired.

~~October~~On 31January 21, ~~2012~~2011, the Company completed a non-brokered private placement, issuing 212,500 shares of common stock to eleven investors, at a price of CAD$10.402 per share,~~784~~ (for gross proceeds of CAD$85,000. In connection with the completion of the private placement, the Company paid onCAD$7,500 ~~October~~in 31finder’s fees in cash, ~~2012)~~to certain arm’s length parties, and CAD$6,807 in legal, accounting, transfer agent and filing fees.

November 30, 2012 - $1,726 (paid on November 30, 2012)

December 31, 2012 - $1,784 (paid on December 31, 2012)

January 31, 2013 - $1,784 (paid on January 31, 2013)

February 28, 2013 - $1,611

March 15, 2013 - $863

(ii) 29-Palms Morongo Agreement

On October 24, 2012, Coronus entered into a Vacant Land Purchase Agreement (the “29-Palms Morongo Agreement”). Under the 29-Palms Morongo Agreement, Coronus agrees to acquire a 24.23 acre parcel of vacant land, situated north of 29-Palms, in the County of San Bernardino, California. The purchase price was $86,683, all cash. Close of escrow is January 31, 2013. Coronus deposited $1,000 into escrow and agrees to deposit an additional $85,683 within sufficient time to close escrow. Effective January 31, 2013, under the 29-Palms Morongo Agreement, Coronus has been replaced as Purchaser with the Company’s wholly-owned subsidiary Coronus 29-Palms Morongo LLC. Additionally, the close of escrow has been extended to March 31, 2013, and the 29-Palms Morongo Agreement is now subject to Coronus 29-Palms Morongo LLC’s board of director approval on or before March 24, 2013

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Table of Contents

CORONUS SOLAR INC.

(A Development Stage Enterprise)

Notes to Consolidated Financial Statements

(Expressed in U.S. Dollars)

~~Nine~~Period ~~Months~~ Ended ~~December~~June 3130, ~~2012~~2013

~~(Unaudited)~~Note 12 – Stockholders’ Equity - Continued

~~Note~~(a) 19Common –Stock ~~Commitments~~ - Continued

On March 31, 2011, the Company and its wholly-owned subsidiary, Coronus Energy Corp. (c“Coronus”), ~~Acquisition~~entered into a purchase agreement for utility-scale, ground-mount, solar photovoltaic (“PV”) power systems (the “Solar Power Systems Agreement”) with Belectric, Inc. (“Belectric”). Under the Solar Power Systems Agreement, Coronus agreed to acquire a total of ~~Vacant~~21 ~~Land~~MW ac of utility-scale, ~~Continued~~ground-mount, solar PV power systems from Belectric, for total consideration of $76,818,000, exclusive of taxes (the “Basic Price”). On entering into the Solar Power Systems Agreement, the Company paid 15% of the Basic Price, or $11,522,700, by way of issuing 10,974,000 shares of its common stock to Belectric, at a deemed value of $1.05 per share. The fair value per share at the date of issuance was $0.60. As a result, $6,584,400 was recorded under shareholders’ equity and construction in progress.

~~(iii)~~On ~~Apple~~May ~~Valley~~10, ~~East~~2011, Rethe Company completed a non-~~Site~~brokered ~~Agreement~~private placement of 350,000 units at a price of CAD $0.60 per unit for proceeds of CAD $210,000. Each unit was comprised of one common share in the capital of the Company and one non-transferrable share purchase warrant. Each warrant entitles the holder thereof to purchase a further common share at an exercise price of CAD $0.75 for a period of five years. The value assigned to the underlying warrants was CAD$90,000 ($93,652).

On ~~December~~October 824, ~~2012~~2011, ~~Coronus~~the ~~entered~~Company ~~into~~completed a ~~Vacant~~non-brokered ~~Land~~private ~~Purchase~~placement ~~Agreement~~of ~~(the~~17,000 ~~“Apple~~units ~~Valley~~at ~~East~~a ~~Re-Site~~price ~~Agreement”)~~of CAD$0.60 ~~Under~~per ~~the~~unit ~~Apple~~for ~~Valley~~gross ~~East~~proceeds ~~Re-Site~~of ~~Agreement~~CAD$10,200. ~~Coronus~~Each ~~agreed~~unit tois ~~acquire~~comprised aof ~~14.78~~one ~~acre~~common ~~parcel~~share in the capital of ~~vacant~~the ~~land,~~Company ~~situated~~and ~~east~~one ofnon-transferrable ~~Apple~~share ~~Valley,~~purchase inwarrant. ~~the~~Each ~~County~~warrant ofentitles ~~San~~the ~~Bernardino,~~holder ~~California.~~thereof ~~The~~to purchase ~~price~~a ~~was~~further ~~$300,000.~~common ~~Close~~share ofat ~~escrow~~an ~~was~~exercise ~~January~~price 7,of ~~2013~~CAD $0.75 ~~Coronus~~for ~~deposited~~a ~~$100,000~~period ~~into~~of ~~escrow~~five years. The ~~sellers~~value ~~agreed~~assigned to ~~carry back~~ the ~~balance~~underlying ~~amount~~warrants ofwas CAD$~~200~~4,~~000~~470 ~~for three months at 0%~~ ($~~nil~~4,452) ~~interest~~. ~~The transaction closed on January 7, 2013.~~

On August 15, 2012, the Company amended the purchase agreement for utility-scale, ground-mount, solar photovoltaic (dPV) ~~Utility~~power ~~Interconnection~~systems ~~Studies~~(the “Solar Power Systems Agreement”), the Company entered into with Coronus and Belectric Inc. (“Belectric”), on March 31, 2011 [see Note 8]. Under the amended agreement (the “Amended Solar Power Systems Agreement”), 9,876,600 of the Original Payment Shares were cancelled on August 15, 2012, at the deemed price of $1.05 per share. The fair value per share at the date of cancellation was $0.60.

~~(i)~~As ~~SIS~~at ~~Study~~June ~~Agreements~~30, ~~for~~2013, ~~Projects~~10,226,900 ~~Coronus~~(March ~~Joshua~~31, ~~Tree~~2013: ~~East 1~~10,226,900) 2shares ~~and~~of 3the Company’s common stock were restricted shares.

~~On February 23, 2012, Coronus entered into three System Impact Study Agreements~~ (~~the “SIS Study Agreement for Coronus Joshua Tree East 1”, the "SIS Study Agreement for Coronus Joshua Tree East 2", and the “SIS Study Agreement for Coronus Joshua Tree East 3”~~b) ~~with~~Stock SCE. The SIS Study Agreements relate to Coronus’ application for interconnection service and the CREST tariff for three 1.5 MW solar PV power systems on the 56.03 acre parcel of vacant land, situated east of Joshua Tree, in the County of San Bernardino, California, Coronus acquired on June 30, 2011 (see Note 7).Options

~~The~~Since SIS Agreements set forth the terms and conditions for SCE to perform system impact studies to determine the impacts that would result from interconnecting the three PV systems and the adequacy of SCE’s electrical system to accommodate them. In additioninception, ~~SCE shall make a preliminary determination of~~ the ~~required~~Company ~~interconnection~~has ~~facilities~~entered and distribution system upgrades, and any other modifications or additions that would be needed. The estimated cost of each SIS study was $10,000. The results of the SIS studies were anticipated to be completed by September 1, 2012. On entering into ~~the~~various ~~SIS~~stock ~~Study~~option ~~Agreements,~~agreements ~~Coronus~~with ~~paid~~its ~~SCE the three $10~~directors,~~000~~ ~~deposits,~~employees ~~for a total payment of $30,000. On October 15, 2012, Coronus received the SIS Study Agreements for Coronus Joshua Tree East 1, 2~~ and 3consultants.

~~(ii)~~During ~~SIS~~the ~~Study~~period ~~Agreements~~ended ~~for~~June ~~Projects~~30, ~~Coronus~~2013 ~~Adelanto~~and ~~West~~year 1ended ~~and~~March 231, 2013, there were no options granted or exercised.

On April 13, 2012, Coronus entered into two System Impact Study Agreements (the “SIS Study Agreement for Coronus Adelanto West 1” and the “SIS Study Agreement for Coronus Adelanto West 2”) with SCE. The SIS Study Agreements relate to Coronus’ application for interconnection service and the CREST tariff for two 1.5 MW solar PV power systems on the 40 acre parcel of vacant land, situated in the City of Adelanto, California, Coronus acquired on April 19, 2012 (see Note 7).

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Table of Contents

CORONUS SOLAR INC.

(A Development Stage Enterprise)

Notes to Consolidated Financial Statements

(Expressed in U.S. Dollars)

~~Nine~~Period ~~Months~~ Ended ~~December~~June 3130, ~~2012~~2013

~~(Unaudited)~~Note 12 – Stockholders’ Equity - Continued

~~Note~~(b) 19Stock –Options ~~Commitments~~ - Continued

~~(c)~~Changes ~~Acquisition~~in ofstock ~~Vacant~~options ~~Land~~for -the ~~Continued~~period ended June 30, 2013 and year ended March 31, 2013 are summarized as follows:

The SIS Agreements set forth the terms and conditions for SCE to perform system impact studies to determine the impacts that would result from interconnecting the two PV systems and the adequacy of SCE’s electrical system to accommodate them. In addition, SCE shall make a preliminary determination of the required interconnection facilities and distribution system upgrades, and any other modifications or additions that would be needed. The estimated cost of each SIS study was $10,000. The results of the SIS studies were anticipated to be completed by November 19, 2012. On entering into the SIS Study Agreements, Coronus paid SCE the two $10,000 deposits, for a total payment of $20,000. On December 14, 2012, Coronus received the SIS Study Agreements for Coronus Adelanto West 1and 2.

	Options Outstanding

	Number of		Weighted average
	shares		exercise price

Balance, March 31, 2012	745,000	$	0.065
Expired	(5,000)		0.105
Balance, March 31, 2013 and June 30, 2013	740,000	$	0.065

~~(iii)~~The ~~SIS~~Company ~~Study~~has ~~Agreements~~the ~~for~~following ~~Projects~~options ~~Coronus~~outstanding ~~Apple~~and ~~Valley~~exercisable ~~East~~at 1June ~~and~~30, 22013:

On May 3, 2012, Coronus entered into two System Impact Study Agreements (the “SIS Study Agreement for Coronus Apple Valley East 1” and the “SIS Study Agreement for Coronus Apple Valley East 2”) with SCE. The SIS Study Agreements relate to Coronus’ application for interconnection service and the CREST tariff for two 1.5 MW solar PV power systems on SCE’s Tussing 12 kV distribution circuit, situated east of Apple Valley, in the County of San Bernardino, California.

Outstanding

Exercisable

Weighted

Number

Average

Weighted

Number

Weighted

Range of

Outstanding at

Remaining

Average

Exercisable at

Average

Exercise

June 30,

Contractual

Exercise

March 31,

Exercise

Prices

2013

Life (Years)

Price

2013

Price

0.065

740,000

2.40

0.065

740,000

0.065

The ~~SIS~~Company ~~Agreements~~has ~~set forth~~ the ~~terms~~following ~~and~~options ~~conditions~~outstanding ~~for SCE to perform system impact studies to determine the impacts that would result from interconnecting the two PV systems~~ and ~~the~~exercisable ~~adequacy~~at ofMarch ~~SCE’s electrical system to accommodate them. In addition~~31, SCE shall make a preliminary determination of the required interconnection facilities and distribution system upgrades, and any other modifications or additions that would be needed. The estimated cost of each SIS study was $10,000. The results of the SIS studies were anticipated to be completed within 120 business days. On entering into the SIS Study Agreements, Coronus paid SCE the two $10,000 deposits, for a total payment of $20,000. On October 26, 2012, Coronus received the SIS Study Agreements for Coronus Apple Valley East 1 and 2.2013:

(iv) SIS Study Agreements for Projects Coronus Joshua Tree East 4 and 5

Outstanding

Exercisable

Weighted

Number

Average

Weighted

Number

Weighted

Range of

Outstanding at

Remaining

Average

Exercisable at

Average

Exercise

March 31,

Contractual

Exercise

March 31,

Exercise

Prices

2013

Life (Years)

Price

2013

Price

0.065

740,000

2.65

0.065

740,000

0.065

On June 25, 2012, Coronus entered into two System Impact Study Agreements (the “SIS Study Agreement for Coronus Joshua Tree East 4” and the “SIS Study Agreement for Coronus Joshua Tree East 5”) with SCE. The SIS Study Agreements relate to Coronus’ application for interconnection service and the CREST tariff for two 1.5 MW solar PV power systems on the 56.03 acre parcel of vacant land, situated east of Joshua Tree, in the County of San Bernardino, California, Coronus acquired on June 30, 2011 (see Note 7).

The SIS Agreements set forth the terms and conditions for SCE to perform system impact studies to determine the impacts that would result from interconnecting the two PV systems and the adequacy of SCE’s electrical system to accommodate them. In addition, SCE shall make a preliminary determination of the required interconnection facilities and distribution system upgrades, and any other modifications or additions that would be needed. The estimated cost of each SIS study was $10,000. The results of the SIS studies were anticipated to be completed within 120 business days. On entering into the SIS Study Agreements, Coronus paid SCE the two $10,000 deposits, for a total payment of $20,000. On October 15, 2012, Coronus received the SIS Study Agreements for Coronus Joshua Tree East 4 and 5.

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CORONUS SOLAR INC.

(A Development Stage Enterprise)

Notes to Consolidated Financial Statements

(Expressed in U.S. Dollars)

~~Nine~~Period ~~Months~~ Ended ~~December~~June 3130, ~~2012~~2013

~~(Unaudited)~~Note 12 – Stockholders’ Equity - Continued

~~Note~~(c) ~~19 – Commitments - Continued~~Warrants

On May 10, 2011, the Company completed a non-brokered private placement, issuing 350,000 units (cthe “Units”), ~~Acquisition~~at a price of ~~Vacant~~CAD$0.60 ~~Land~~per Unit, for proceeds of CAD$210,000. Each Unit was comprised of one common share in the capital of the Company and one non-transferrable ~~Continued~~share purchase warrant. Each warrant entitles the holder thereof to purchase a further common share at an exercise price of CAD$0.75 for a period of five years. The Company determined the fair value of the warrants to be $0.257 per warrant using the Black-Scholes option pricing model.

~~(v)~~On ~~SIS~~October ~~Study~~24, ~~Agreement~~2011, the Company completed a non-brokered private placement of 17,000 units at a price of CAD$0.60 per unit for ~~Project~~gross ~~Coronus~~proceeds ~~Yucca~~of ~~Valley~~CAD$10,200. ~~East~~Each 3unit is comprised of one common share in the capital of the Company and one non-transferrable share purchase warrant. Each warrant entitles the holder thereof to purchase a further common share at an exercise price of CAD $0.75 for a period of five years. The Company determined the fair value of the warrants to be $0.263 per warrant using the Black-Scholes option pricing model.

On ~~June~~February 252, 2012, ~~Coronus~~the ~~entered~~Company ~~into~~issued a ~~System~~convertible ~~Impact~~promissory ~~Study~~note ~~Agreement~~for ~~(the~~CAD$50,000 ~~“SIS~~and ~~Study~~83,333 ~~Agreement~~transferrable warrants for ~~Coronus~~gross ~~Yucca~~proceeds ~~Valley~~of ~~East~~CAD$50,000. ~~3”)~~On ~~with~~February ~~SCE.~~23, ~~The~~2012, ~~SIS~~the ~~Study~~Company ~~Agreement~~issued ~~relates~~a tosecond ~~Coronus’~~convertible ~~application~~promissory note for ~~interconnection~~CAD$50,000 ~~service~~ and ~~the~~a ~~CREST~~further ~~tariff~~83,333 transferrable warrants for agross 1proceeds of CAD$50,000.5 MWThese ~~solar~~convertible PVpromissory ~~power~~notes, ~~system~~totalling CAD$100,000, matured on ~~the~~February 342, 2013, and bore an annual interest rate of 12%.07 ~~acre~~The ~~parcel~~holders of ~~vacant~~the ~~land~~notes could convert the note and accrued interest, ~~situated~~at ~~east~~or ofbefore ~~Yucca~~the ~~Valley~~maturity date, ininto common shares of the ~~County~~Company at CAD$0.60 each. Each warrant entitles the holder thereof to purchase a further common share of ~~San~~the ~~Bernardino,~~Company ~~California,~~at ~~Coronus~~an ~~acquired~~exercise onprice ~~August~~of ~~17,~~CAD$0.75 ~~2012~~for ~~(see~~a ~~Note~~period 7)of five years. The Company determined the fair value of the warrants to be CAD$0.7816 per warrant using the Black-Scholes option pricing model.

The ~~SIS~~relative ~~Agreement~~estimated ~~sets~~fair ~~forth~~value of the ~~terms~~warrants ~~and~~in ~~conditions~~relation ~~for SCE~~ to ~~perform a system impact study to determine~~ the ~~impacts~~private ~~that~~placements ~~would~~in ~~result~~May ~~from interconnecting the PV system and the adequacy of SCE’s electrical system to accommodate it. In addition~~2011, ~~SCE~~October ~~shall make a preliminary determination of the required interconnection facilities and distribution system upgrades~~2011, and ~~any~~February ~~other~~2012 ~~modifications~~were ~~or additions that would be needed. The estimated cost of the SIS study was~~ CAD$1090,000. ~~The~~(USD$90,628), ~~results of the SIS study were anticipated to be completed on December 14~~CAD$4,470 ~~2012. On entering into the SIS Study Agreement~~(USD$4,501), ~~Coronus~~and ~~paid SCE the~~ CAD$1056,~~000~~571 ~~deposit. On December 14~~(USD$56,966), ~~2012~~respectively, ~~Coronus~~and ~~received~~were ~~the~~allocated ~~SIS~~to ~~Study~~the ~~Agreement~~additional ~~for~~paid-in ~~Coronus Yucca Valley East 3~~capital.

~~(v)~~During ~~SIS~~the ~~Study~~period ~~Agreement~~ended ~~for~~June ~~Project~~30, ~~Coronus~~2013 ~~29-Palms~~and ~~North~~year 4ended March 31, 2013, the Company did not issue any warrants. At June 30, 2013, 533,666 (March 31, 2013: 533,666) warrants remained outstanding.

On October 11, 2012, Coronus entered into a System Impact Study Agreement (the “SIS Agreement for 29-Palms North 4”) with SCE. The SIS Agreement relates to Coronus’ application for interconnection service and the CREST tariff for a 1.5 MW solar PV system on SCE’s Sheephole 33kV distribution circuit, situated north of Twentynine Palms, in the County of San Bernardino, California.

The SIS Agreement sets forth the terms and conditions for SCE to perform a system impact study to determine the impacts that would result from interconnecting the PV system and the adequacy of SCE’s electrical system to accommodate it. In addition, SCE shall make a preliminary determination of the required interconnection facilities and distribution system upgrades, and any other modifications or additions that would be needed. The estimated cost of the study is $10,000. The results of the study are anticipated to be completed within 120 business days. On entering into the SIS Agreement, Coronus paid SCE the $10,000 deposit.

(vi) FAS Study Agreements for Projects Coronus Apple Valley East 1 and 2

On December 18, 2012, Coronus entered into two Facilities Study Agreements (the “FAS Agreements for Apple Valley East 1 and 2”) with SCE. The FAS Agreements relate to Coronus’ application for interconnection service and the CREST tariff for two 1.5 MW solar PV systems on SCE’s Tussing 12 kV distribution circuit, situated east of Apple Valley, in the County of San Bernardino, California.

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CORONUS SOLAR INC.

(A Development Stage Enterprise)

Notes to Consolidated Financial Statements

(Expressed in U.S. Dollars)

~~Nine~~Period ~~Months~~ Ended ~~December~~June 3130, ~~2012~~2013

~~(Unaudited)~~Note 12 – Stockholders’ Equity - Continued

~~Note~~(c) 19Warrants ~~– Commitments~~ - Continued

~~(c)~~The ~~Acquisition~~Company ofhas ~~Vacant~~the ~~Land~~following -warrants ~~Continued~~outstanding at June 30, 2013:

The FAS Agreements set forth the terms and conditions for SCE to perform a facilities study to determine the impacts that would result from interconnecting the two PV systems and the adequacy of SCE’s electrical system to accommodate them. In addition, SCE shall make a refined determination of the required interconnection facilities and distribution system upgrades, and any other modifications or additions that would be needed, to accommodate the two PV systems. The estimated cost of each study is $15,000. On entering into the FAS Agreements, Coronus paid SCE $30,000 in deposits.

								Exercise	Average
Balance	Issued	Exercised	Cancelled	Balance		Exercise		price	Remaining
as at	during the	during the	during the	as at		price		(USD	Contractual
2013-03-31	period	period	period	2013-06-30		(CAD)		equivalent)	Life in Years

350,000	-	-	-	350,000	$	0.75	$	0.75	2.86
17,000	-	-	-	17,000	$	0.75		0.75	3.32
166,666	-	-	-	166,666	$	0.75		0.75	3.60
533,666	-	-	-	533,666	$	0.75	$	0.75	3.11

~~(d)~~The ~~Interconnection~~Company ~~Financial~~has ~~Security~~the ~~Postings~~following warrants outstanding at March 31, 2013:

(i) Initial Posting of Interconnection Financial Security for Project Coronus 29-Palms North 1

								Exercise	Average
Balance	Issued	Exercised	Cancelled	Balance		Exercise		price	Remaining
as at	during the	during the	during the	as at		price		(USD	Contractual
2012-03-31	period	period	period	2013-03-31		(CAD)		equivalent)	Life in Years

350,000	-	-	-	350,000	$	0.75	$	0.75	3.11
17,000	-	-	-	17,000	$	0.75		0.75	3.57
166,666	-	-	-	166,666	$	0.75		0.75	3.85
533,666	-	-	-	533,666	$	0.75	$	0.75	3.37

OnThe ~~December~~warrants 3,are ~~2012,~~not ~~pursuant~~a toderivative ~~the SCE interconnection request for solar PV project Coronus 29-Palms North 1, Coronus posted with SCE the initial interconnection financial security, in the amount of $29,500~~instrument. ~~This amount was determined by the results of the Combined System Impact and Facility Study Agreement Coronus entered into with SCE on June 16, 2011.~~

~~(ii)~~Note ~~Initial~~13 ~~Posting~~– ofContingent ~~Interconnection Financial Security for Projects Coronus 29-Palms North 2 and 3~~Liabilities

OnManagement ~~December~~of ~~26, 2012, pursuant to~~ the ~~Southern~~Company ~~California~~has ~~Edison~~opted ~~(“SCE”) interconnection requests~~ for ~~solar PV projects Coronus 29-Palms North 2 and 3, Coronus posted with SCE~~ the ~~initial~~Company ~~interconnection~~to ~~financial securities, in the amounts of $373,300 and $208,900, respectively. The posting amount for the Coronus 29~~self-~~Palms~~insure ~~North~~against 2business ~~project was determined by the results of the Combined System Impact~~ and ~~Facility~~liability ~~Study~~risks ~~Coronus~~rather ~~entered~~than ~~into~~purchase ~~with~~third ~~SCE~~party oninsurance ~~June 16, 2011~~coverage. ~~The~~Consequently ~~posting amount for~~ the ~~Coronus~~Company ~~29-Palms~~is ~~North~~exposed 3to ~~project~~financial ~~was~~losses ~~determined~~or byfailure ~~the~~as ~~results~~a result of ~~the~~these ~~System Impact Study Coronus entered into with SCE on February 29, 2012~~risks.

~~(iii)~~Note ~~Initial~~14 ~~Posting~~– ofRelated ~~Interconnection~~Party ~~Financial Security for Projects Coronus Apple Valley East 1 and 2~~Transactions

OnDuring ~~December 27, 2012, pursuant to~~ the ~~SCE~~period ~~interconnection~~ended ~~requests~~June ~~for solar PV projects Apple Valley East 1 and 2~~30, ~~Coronus posted with SCE the initial interconnection financial securities~~2013, in the ~~amounts~~Company ofpaid $~~270,900~~293 ~~and~~(2012: $~~32,900,~~300) ~~respectively.~~in ~~The~~director ~~posting~~fees ~~amounts~~to ~~for~~ the ~~Apple~~directors ~~Valley East 1 and 2 projects were determined by the results~~ of the ~~System Impact Studies Coronus entered into with SCE on May 3, 2012~~Company.

During the period ended June 30, 2013, $24,571 (e2012: $25,113) ~~Power~~of ~~Purchase~~compensation ~~Agreements~~were paid to a director and shareholder.

(i) Power Purchase Agreements for Projects Coronus Yucca Valley East 1 and 2

On August 30, 2012 (the “Yucca Valley East PPAs Effective Date”), Coronus’ wholly-owned subsidiaries, Coronus Yucca Valley East 1 LLC and Coronus Yucca Valley East 2 LLC, entered into two identical Power Purchase Agreements (the “Yucca Valley East PPAs”) with SCE. The Yucca Valley East PPAs relate to Coronus’ applications for interconnection service and the CREST tariff for two 1.5 MW solar PV power systems (the “Yucca Valley East 1 and Yucca Valley East 2 Projects”) on the 34.07 acre parcel of vacant land, situated east of Yucca Valley, in the County of San Bernardino, California (the “Yucca Valley East Property”), Coronus acquired on August 17, 2012.

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Table of Contents

CORONUS SOLAR INC.

(A Development Stage Enterprise)

Notes to Consolidated Financial Statements

(Expressed in U.S. Dollars)

~~Nine~~Period ~~Months~~ Ended ~~December~~June 3130, ~~2012~~2013

~~(Unaudited)~~Note 14 – Related Party Transactions - Continued

~~Note~~As 19at –June ~~Commitments~~30, -2013, ~~Continued~~included in accounts payable, $229 (March 31, 2013: $2,586) was owed to directors and/or principals of the Company.

~~(e)~~Other ~~Power~~related ~~Purchase~~party ~~Agreements - Continued~~transactions

The Yucca Valley East PPAs are standardized, must-take, full buy/ sell, power purchase agreements, where SCE purchases all of the Yucca Valley East 1 and Yucca Valley East 2 Projects’ generation, net of station use. The term of the Yucca Valley East PPAs is 20 years. The price SCE pays for the generation shall be premised on the adopted 2011 Market Price Referent, and shall be adjusted according to SCE’s time of delivery periods and energy allocation factors, as scheduled in the Yucca Valley East PPAs. Initial operation of the Yucca Valley East 1 and Yucca Valley East 2 Projects must be no later than eighteen months from the Yucca Valley East PPAs Effective Date. The Yucca Valley East PPAs include, but are not limited to, provisions in respect of termination, facility operation, billing and payment, curtailment, and insurance. Additionally, on or before the thirtieth day following the Yucca Valley East PPAs Effective Date, Coronus was required to post and maintain development fees (~~the “Yucca Valley East Development Securities”~~i) ~~equal~~Industry toSolar ~~$37,604~~PV ~~per~~Asset ~~Yucca~~Sale Valley East PPA. If, on or before initial operation, Coronus demonstrates to SCE's satisfaction that it has installed all of the equipment or devices necessary for Coronus to satisfy the gross power rating of the generating facilities, SCE shall return the Yucca Valley East Development Securities to Coronus within thirty days of each facility’s initial operation. The power purchase agreement development securities for Yucca Valley East 1 and 2 of $37,604 and $37,604 were paid on September 27, 2012, respectively.Agreement

On October 24, 2012, Coronus entered into a Solar Photovoltaic Asset Sale Agreement (iithe “Industry Solar PV Asset Sale Agreement”) with Solar Krafte Utilities Inc. (“Solar Krafte”). Solar Krafte held a contract to purchase Industry Solar Power Generation Station 1 LLC (“Industry”). Under the Industry Solar PV Asset Sale Agreement, Coronus agreed to purchase Industry from Solar Krafte for $1,250,000 (the “Cash Price”). Industry was a party to a Power Purchase ~~Agreements~~Agreement (the “Industry PPA”) with SCE, under the CREST tariff, for ~~Projects~~a 1.5 MW concentrated photovoltaic power system (the “Industry System”). On entering into the Industry Solar PV Asset Sale Agreement, Coronus ~~29-Palms~~deposited ~~North~~$40,000 with Solar Krafte, refundable to Coronus if SCE refused to approve 1) the design change to the Industry System, 2) ~~and~~the invocation of Section 2.9(c) of the Industry PPA, or 3) the relocation of the generating facility to Coronus’ Adelanto West Parcel. Not having received SCE’s approval, on March 27, 2013, Coronus exercised its right to terminate the Industry Solar PV Asset Sale Agreement, and on March 27, 2013, Solar Krafte refunded the $40,000 deposit. Jeff Thachuk, the Company’s president and a control person of the Company, is the chairman, chief executive officer, and a control person of Solar Krafte. Mark Burgert, a shareholder of the Company, is the president and a control person of Solar Krafte. On October 24, 2012, the Company’s board of directors approved Coronus’ entry into the Industry Solar PV Asset Sale Agreement, and on March 27, 2013, the Company’s board of directors approved Coronus’ termination of the Industry Solar PV Asset Sale Agreement. As a director of the Company, Mr. Thachuk declared his interest in the transaction and abstained from voting on both the approval and termination of the Industry Solar PV Asset Sale Agreement.

~~On August 30, 2012~~ (~~the “29-Palms North PPAs Effective Date”~~ii), ~~Coronus’~~Earthlight ~~wholly-owned~~Agency subsidiaries, Coronus 29-Palms North 1 LLC, Coronus 29-Palms North 2 LLC, and Coronus 29-Palms North 3 LLC, entered into three identical Power Purchase Agreements (the “29-Palms North PPAs”) with SCE. The 29-Palms North PPAs relate to Coronus’ applications for interconnection service and the CREST tariff for three 1.5 MW solar PV power systems (the “29-Palms North 1, 29-Palms North 2, and 29-Palms North 3 Projects”) in respect of the 12kV distribution circuit that feeds the 39.25 acre parcel of vacant land, situated north of Twentynine Palms, in the County of San Bernardino, California (the “29-Palms North Property”), Coronus acquired on May 16, 2011.Fee

~~The~~On ~~29-Palms~~December ~~North PPAs are standardized~~20, ~~must-take~~2012, ~~full~~Coronus ~~buy/~~and ~~sell,~~Coronus’ ~~power~~wholly-owned ~~purchase agreements~~subsidiaries, ~~where~~Coronus ~~SCE purchases all of the~~ 29-Palms North 1 LLC, Coronus 29-Palms North 2 LLC, ~~and~~Coronus 29-Palms North 3 ~~Projects’ generation~~LLC, ~~net~~Coronus ofYucca ~~station~~Valley ~~use.~~East ~~The~~1 ~~term~~LLC, ofCoronus ~~the~~Yucca ~~29-Palms~~Valley ~~North~~East ~~PPAs~~2 isLLC, 20Coronus ~~years.~~Yucca ~~The~~Valley ~~price~~East ~~SCE~~3 ~~pays~~LLC, ~~for~~Coronus ~~the~~Joshua ~~generation~~Tree ~~shall~~East be1 ~~premised~~LLC, onCoronus ~~the~~Joshua ~~adopted~~Tree ~~2011~~East ~~Market~~2 ~~Price Referent~~LLC, ~~and~~Coronus ~~shall~~Joshua beTree ~~adjusted~~East ~~according~~3 toLLC, ~~SCE’s~~Coronus ~~time~~Joshua ofTree ~~delivery~~East ~~periods~~4 ~~and energy allocation factors~~LLC, asCoronus ~~scheduled~~Joshua inTree ~~the~~East ~~29-Palms~~5 ~~North~~LLC, ~~PPAs.~~Coronus ~~Initial~~Apple ~~operation~~Valley ofEast ~~the~~1 ~~29-Palms~~LLC, ~~North~~Coronus 1,Apple ~~29-Palms~~Valley ~~North~~East 2 LLC, ~~and~~Coronus ~~29-Palms~~Adelanto ~~North~~West 31 ~~Projects~~LLC, ~~must~~and beCoronus noAdelanto ~~later~~West ~~than~~2 ~~eighteen~~LLC ~~months~~(collectively ~~from~~ the ~~29-Palms~~“Project ~~North~~Companies”), ~~PPAs~~conducted ~~Effective~~a ~~Date. The 29~~non-~~Palms~~brokered ~~North~~private ~~PPAs include~~placement, ~~but~~issuing ~~are~~a ~~not~~senior ~~limited to~~secured, ~~provisions~~promissory innote ~~respect~~(the of“Note”) ~~termination,~~to ~~facility~~one ~~operation~~investor, ~~billing~~Clean ~~and~~Focus ~~payment,~~Financing ~~curtailment~~Company, ~~and~~LP ~~insurance.~~(“Clean ~~Additionally~~Focus”), onfor orproceeds ~~before~~of ~~the~~up ~~thirtieth~~to ~~day following the 29-Palms North PPAs Effective Date~~$4,000,000 ~~Coronus was required to post and maintain development fees~~ (the “~~29-Palms North Development Securities~~Loan”). ~~equal~~Pursuant to ~~$38,250~~a ~~per~~schedule ~~29-Palms~~of ~~North~~draw ~~PPA.~~dates ~~If,~~and ~~on or before initial operation~~amounts, Coronus ~~demonstrates~~was to ~~SCE's~~request ~~satisfaction~~advances, ~~that~~in itwhole ~~has~~or ~~installed~~in ~~all~~part, of ~~the~~up ~~equipment or devices necessary for Coronus~~ to ~~satisfy~~ the ~~gross~~maximum ~~power~~amount ~~rating~~ of the ~~generating~~Loan ~~facilities, SCE shall return the 29-Palms North Development Securities to Coronus within thirty days of~~ (each ~~facility’s~~an ~~initial operation~~“Advance”). ~~The power purchase agreement development securities for 29-Palms North 1, 2 and 3 of $38,250, $38,250 and $38,250 were paid on September 27, 2012, respectively.~~

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Table of Contents

CORONUS SOLAR INC.

(A Development Stage Enterprise)

Notes to Consolidated Financial Statements

(Expressed in U.S. Dollars)

~~Nine~~Period ~~Months~~ Ended ~~December~~June 3130, ~~2012~~2013

~~(Unaudited)~~Note 14 – Related Party Transactions - Continued

~~Note~~Other 19related –party ~~Commitments~~transactions - Continued

In connection with the Loan, with each Advance, but not from the proceeds of each Advance, but from Coronus’ unallocated working capital, Coronus was to pay Earthlight Solar Inc. (e“Earthlight”) ~~Power~~a ~~Purchase~~fee ~~Agreements~~equal -to ~~Continued~~3% of the principal amount of the Advance. Mark Burgert, a control person of the Company, is the president and a control person of Earthlight. In connection with the Loan, on behalf of Coronus, Earthlight acted as agent. Coronus paid the 3% fee to Earthlight as follows: on December 26, 2012, Coronus paid Earthlight $45,000; on January 4, 2013, Coronus paid Earthlight $15,000; on February 12, 2013, Coronus paid Earthlight $30,000; and on March 11, 2013, Coronus paid Earthlight $30,000.

(iii) ~~Power~~Earthlight ~~Purchase Agreements for Projects Coronus Joshua Tree East 1, 2, 3, 4 and 5~~Consultancy

On December 726, 2012 ~~(the “Joshua Tree East PPAs Effective Date”)~~, ~~Coronus’~~effective ~~wholly-owned~~January ~~subsidiaries, Coronus Joshua Tree East~~ 1 ~~LLC~~, ~~Coronus Joshua Tree East 2 LLC~~2013, Coronus ~~Joshua~~agreed ~~Tree~~to ~~East~~engage 3Earthlight ~~LLC,~~to provide Coronus ~~Joshua~~with ~~Tree~~advisory ~~East 4 LLC,~~ and ~~Coronus~~consulting ~~Joshua~~services ~~Tree East 5 LLC, entered into five identical Power Purchase Agreements~~ (the “~~Joshua Tree East PPAs~~Services”) ~~with~~in ~~SCE.~~respect ~~The~~of ~~Joshua Tree East PPAs relate to~~ Coronus’ ~~applications~~solar ~~for~~photovoltaic ~~interconnection~~business. ~~service~~Under ~~and~~ the ~~CREST~~engagement, ~~tariff~~Coronus ~~for~~is ~~five~~to ~~1.5~~pay MWEarthlight ~~solar~~$8,000 PVper ~~power~~month ~~systems~~ (the “~~Joshua~~Fee”) ~~Tree~~for ~~East~~the 1Services, ~~Joshua~~with ~~Tree~~the ~~East~~Fee 2,due ~~Joshua Tree East 3, Joshua Tree East 4,~~ and ~~Joshua~~payable ~~Tree~~at ~~East 5 Projects”) on~~ the ~~56.03~~end ~~acre parcel~~ of ~~vacant~~each ~~land,~~month. ~~situated~~During ~~east of Joshua Tree, in~~ the ~~County~~period ofended ~~San~~June ~~Bernardino~~30, ~~California~~2013, (the ~~“Joshua~~Company ~~Tree~~paid ~~East Property”)~~$24,000 ~~Coronus~~to ~~acquired~~Earthlight on(2012: ~~June 30, 2011~~$nil).

The Joshua Tree East PPAs are standardized, must-take, full buy/ sell, power purchase agreements, where SCE purchases all of the Joshua Tree East 1, Joshua Tree East 2, Joshua Tree East 3, Joshua Tree East 4, and Joshua Tree East 5 Projects’ generation, net of station use. The term of the Joshua Tree East PPAs is 20 years. The price SCE pays for the generation shall be premised on the adopted 2011 Market Price Referent, and shall be adjusted according to SCE’s time of delivery periods and energy allocation factors, as scheduled in the Joshua Tree East PPAs. Initial operation of the Joshua Tree East 1, Joshua Tree East 2, Joshua Tree East 3, Joshua Tree East 4, and Joshua Tree East 5 Projects must be no later than eighteen months from the Joshua Tree East PPAs Effective Date. The Joshua Tree East PPAs include, but are not limited to, provisions in respect of termination, facility operation, billing and payment, curtailment, and insurance. Additionally, on or before the thirtieth day following the Joshua Tree East PPAs Effective Date, Coronus was required to post and maintain development fees (~~the “Joshua Tree East PPAs Development Securities”~~iv) ~~equal~~Transfer ~~to $36,736 per Joshua Tree East PPA. If, on or before initial operation, Coronus demonstrates to SCE's satisfaction that it has installed all~~ of ~~the~~Vacant ~~equipment~~Land orPurchase ~~devices~~Agreement ~~necessary~~and ~~for~~Interconnection Coronus to satisfy the gross power rating of the generating facilities, SCE shall return the Joshua Tree East PPAs Development Securities to Coronus within thirty days of each facility’s initial operation. On January 4, 2013, Coronus paid the Joshua Tree East PPAs Development Securities.Request

On October 24, 2012, Coronus entered into a Vacant Land Purchase Agreement (ivthe “29-Palms Morongo Agreement”) ~~Power~~to ~~Purchase~~acquire ~~Agreements~~a 24.23 acre parcel of vacant land, situated north of 29-Palms, in the County of San Bernardino, California, which, effective May 3, 2013, the parties amended, agreeing to an option arrangement where an option to purchase the 24.23 acre parcel of vacant land was adopted. On January 31, 2013, the parties to the 29-Palms Morongo Agreement replaced Coronus as purchaser with the Company’s wholly-owned subsidiary Coronus 29-Palms Morongo LLC. Additionally, on March 31, 2013, Coronus assigned the interconnection request for ~~Projects~~project Coronus ~~Apple~~29-Palms ~~Valley~~Morongo ~~East~~to 1Coronus ~~and~~29-Palms 2Morongo LLC.

OnNote ~~December~~15 7,– 2012 (the “Apple Valley East PPAs Effective Date”), Coronus’ wholly-owned subsidiaries, Coronus Apple Valley East 1 LLC and Coronus Apple Valley East 2 LLC, entered into two identical Power Purchase Agreements (the “Apple Valley East PPAs”) with SCE. The Apple Valley East PPAs relate to Coronus’ applications for interconnection service and the CREST tariff for two 1.5 MW solar PV power systems (the “Apple Valley East 1 and Apple Valley East 2 Projects”) on SCE’s Tussing 12 kV distribution circuit, situated east of Apple Valley, in the County of San Bernardino, California.Commitments

~~The~~(a) ~~Apple~~Master ~~Valley~~Services East PPAs are standardized, must-take, full buy/ sell, power purchase agreements, where SCE purchases all of the Apple Valley East 1 and Apple Valley East 2 Projects’ generation, net of station use. The term of the Apple Valley East PPAs is 20 years. The price SCE pays for the generation shall be premised on the adopted 2011 Market Price Referent, and shall be adjusted according to SCE’s time of delivery periods and energy allocation factors, as scheduled in the Apple Valley East PPAs. Initial operation of the Apple Valley East 1 and Apple Valley East 2 Projects must be no later than eighteen months from the Apple Valley East PPAsAgreement

On March 20, 2013, Coronus entered into a Master Services Agreement with solar PV systems integrator Belectric, Inc. (“Belectric”), which allows Belectric to perform Conditional Use Permit (“CUP”) application pre-engineering services for Coronus projects Adelanto West, Apple Valley East, 29-Palms North, Yucca Valley East, and Joshua Tree East. The services to be performed for each project are limited to, and may include, ALTA/ topographical surveys, geotechnical reports, water quality management plans, and hydrology studies. The services shall be completed within approximately eight weeks. In respect of invoicing and payment, Belectric shall submit its standard monthly invoice describing the services performed and expenses incurred during the preceding month. Coronus shall make payment of all undisputed portions within thirty calendar days from the date of the invoice. The Company estimates the services will cost approximately $30,000 to $35,000 per project.

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Table of Contents

CORONUS SOLAR INC.

(A Development Stage Enterprise)

Notes to Consolidated Financial Statements

(Expressed in U.S. Dollars)

~~Nine~~Period ~~Months~~ Ended ~~December~~June 3130, ~~2012~~2013

~~(Unaudited)~~Note 15 – Commitments – Continued

~~Note~~(b) 19Acquisition –of ~~Commitments~~Vacant ~~- Continued~~Land

(ei) ~~Power~~Phelan ~~Purchase~~South ~~Agreements - Continued~~Agreement

~~Effective~~On ~~Date.~~April ~~The~~25, ~~Apple~~2012, ~~Valley~~Coronus ~~East~~entered ~~PPAs~~into ~~include,~~a ~~but~~Vacant ~~are~~Land ~~not~~Purchase ~~limited~~Agreement ~~to,~~(the ~~provisions~~“Phelan inSouth ~~respect~~Agreement”) ofto ~~termination,~~acquire ~~facility~~a ~~operation,~~40 ~~billing~~acre ~~and~~parcel ~~payment,~~of ~~curtailment~~vacant land, ~~and~~situated ~~insurance.~~in ~~Additionally~~Phelan, onan orunincorporated ~~before~~community in the ~~thirtieth~~County ~~day~~of ~~following~~San ~~the~~Bernardino, ~~Apple~~California. ~~Valley~~The ~~East~~purchase ~~PPAs~~price ~~Effective~~was ~~Date~~$350,000, all cash. Coronus ~~was~~deposited ~~required~~$1,000 tointo ~~post~~escrow and ~~maintain~~agreed ~~development~~to ~~fees~~deposit ~~(the~~an ~~“Apple~~additional ~~Valley~~$349,000 ~~East~~within ~~PPAs~~sufficient ~~Development~~time ~~Securities”)~~to ~~equal~~close toescrow. ~~$38,850~~Close ~~per~~of ~~Apple~~escrow ~~Valley~~was ~~East~~scheduled ~~PPA.~~March If15, on2013. orBetween ~~before~~September ~~initial~~30, ~~operation~~2012, ~~Coronus~~and ~~demonstrates~~March to15, ~~SCE's~~2013, ~~satisfaction~~Coronus ~~that~~expensed it$11,278 ~~has installed all~~ of ~~the~~non-refundable ~~equipment~~payments ~~or devices necessary for Coronus~~ to ~~satisfy~~ the ~~gross power rating of the generating facilities~~seller, ~~SCE~~separate ~~shall~~and ~~return~~distinct from the ~~Apple~~purchase. ~~Valley East PPAs Development Securities to~~ Coronus’ ~~within~~board ~~thirty~~of ~~days~~directors ofdid ~~each~~not ~~facility’s~~approve ~~initial~~the ~~operation~~purchase. OnEffective ~~January~~April 422, 2013, ~~Coronus paid~~ the ~~Apple~~parties ~~Valley~~mutually ~~East~~terminated ~~PPAs~~the ~~Development~~Phelan ~~Securities~~South Agreement.

(fii) ~~Industry~~Yucca ~~Solar~~Valley PVEast ~~Asset Sale~~ Agreement #2

On ~~October~~March 2428, ~~2012~~2013, Coronus entered into a ~~Solar~~Vacant ~~Photovoltaic~~Land ~~Asset~~Purchase ~~Sale~~ Agreement (the “~~Industry~~Yucca ~~Solar~~Valley PVEast ~~Asset Sale~~ Agreement”) ~~with Solar Krafte Utilities Inc. (“Solar Krafte~~#2”). ~~Solar~~to ~~Krafte~~acquire ~~holds~~ a ~~contract~~20 toacre ~~purchase~~parcel ~~Industry~~of ~~Solar~~vacant ~~Power~~land, ~~Generation~~situated ~~Station~~east 1of ~~LLC~~Yucca ~~(“Industry”).~~Valley, ~~Under~~in the ~~Industry~~County ~~Solar~~of PVSan ~~Asset Sale Agreement~~Bernardino, ~~Coronus~~California. ~~agreed~~The to purchase ~~Industry~~price ~~from~~is ~~Solar Krafte for~~ $1100,~~250,~~000 ~~(the “Cash Price”)~~. ~~Industry~~Close ~~is a party to a Power Purchase Agreement (the “Industry PPA”) with SCE, under the CREST tariff, for a 1.5 MW concentrated photovoltaic power system (the “Industry System”). Completion~~ of ~~the~~escrow ~~Industry Solar PV Asset Sale Agreement~~ is ~~contingent~~October ~~on SCE approving 1) a design change to the Industry System~~31, ~~2) the invocation of Section 2~~2013.~~9(c)~~ ofCoronus ~~the~~deposited ~~Industry PPA~~$10,000 ~~extending~~into ~~the~~escrow ~~initial~~and ~~operation~~agrees ~~deadline~~to ofdeposit ~~the~~an ~~generating~~additional ~~facility~~$90,000 ~~and~~within 3)sufficient ~~the~~time ~~relocation of the generating facility~~ to ~~Coronus’~~close ~~Adelanto West Parcel~~escrow. ~~Each~~The ~~party~~Yucca ~~has~~Valley ~~the~~East ~~right to terminate the Industry Solar PV Asset Sale~~ Agreement ~~effective~~#2 ~~upon~~is ~~notice~~subject to ~~the~~Coronus ~~other~~receiving ~~party~~permit ifapproval ~~SCE~~for ~~fails~~its tosolar ~~approve,~~PV ~~within~~projects 90Coronus ~~days~~Yucca ~~from~~Valley ~~October~~East ~~24, 2012,~~ 1~~) the design change to the Industry System~~, 2) ~~the~~and ~~invocation~~3 offrom ~~Section 2.9(c) of~~ the ~~Industry~~County ~~PPA, or 3) the relocation~~ of ~~the~~San ~~generating facility to Coronus’ Adelanto West Parcel~~Bernardino. AsSee ofalso ~~February~~note ~~14, 2013, neither party has exercised its right to terminate the Industry Solar PV Asset Sale Agreement~~7(a).

On entering into the Industry Solar PV Asset Sale Agreement, Coronus deposited $40,000 with Solar Krafte, refundable to Coronus if SCE refuses to approve 1) the design change to the Industry System, 2) the invocation of Section 2.9(c) ofInterconnection ~~the~~Financial ~~Industry~~Security PPA, or 3) the relocation of the generating facility to Coronus’ Adelanto West Parcel. Under the Industry Solar PV Asset Sale Agreement, Solar Krafte covenanted, represented and warranted to Coronus that (a) Industry was, and will be, a party in good standing to the Industry PPA, as at the date of the Industry Solar PV Asset Sale Agreement and the closing date, and (b) but for the obligations of Industry, pursuant to the Industry PPA, Industry had, and will have, no obligations as at the date of the Industry Solar PV Asset Sale Agreement and the closing date.Postings

The Industry PPA is a standardized, must-take, full buy/ sell, power purchase agreement, where SCE purchases all of the generating facility’s generation, net of station use. The term of the Industry PPA is 20 years. The price SCE pays for the generation shall be premised on the adopted 2009 Market Price Referent, and shall be adjusted according to SCE’s time of delivery periods and energy allocation factors, as scheduled in the Industry PPA. Without the invocation of Section 2.9(ci) ofSecond ~~the~~Posting ~~Industry PPA, extending the initial operation deadline~~ of ~~the~~Interconnection ~~generating~~Financial ~~facility,~~Security ~~initial~~for ~~operation~~Project ofCoronus ~~the~~Yucca ~~generating~~Valley ~~facility~~East ~~must be no later than June 28, 2013. The Industry PPA includes, but is not limited to, provisions in respect of termination, facility operation, billing and payment, curtailment, and insurance.~~3

On April 15, 2013, pursuant to the SCE interconnection request for solar PV project Coronus Yucca Valley East 3, Coronus posted with SCE the second interconnection financial security, in the amount of $42,250. This amount was determined by the results of the SIS study SCE commenced with Coronus on June 25, 2012.

(ii) Second Posting of Interconnection Financial Security for Projects Coronus Yucca Valley East 1 and 2

On April 26, 2013, pursuant to the SCE interconnection requests for solar PV projects Coronus Yucca Valley East 1 and 2, Coronus posted with SCE the initial interconnection financial securities, in the amounts of $12,650 and $34,990, respectively. The posting amounts for the Coronus Yucca Valley East 1 and 2 projects were determined by the results of the SIS studies SCE commenced with Coronus on February 2, 2012.

(iii) Second Posting of Interconnection Financial Security for Project Coronus Apple Valley East 2

On July 27, 2013, pursuant to the SCE interconnection requests for solar PV project Apple Valley East 2, Coronus shall post with SCE the second interconnection financial security, in the amount of $24,580. The posting amount for the Apple Valley East 2 project was determined by the results of the FAS study SCE commenced with Coronus on December 18, 2012.

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Table of Contents

CORONUS SOLAR INC.

(A Development Stage Enterprise)

Notes to Consolidated Financial Statements

(Expressed in U.S. Dollars)

~~Nine~~Period ~~Months~~ Ended ~~December~~June 3130, ~~2012~~2013

~~(Unaudited)~~Note 15 – Commitments – Continued

~~Note~~(c) 19Interconnection –Financial ~~Commitments~~Security Postings - Continued

(fiv) ~~Industry~~Second ~~Solar~~Posting PVof ~~Asset~~Interconnection ~~Sale~~Financial ~~Agreement~~Security -for ~~Continued~~Projects Coronus Joshua Tree East 1 and 5

~~Jeff~~On ~~Thachuk~~August 14, ~~the~~2013, ~~Company’s~~pursuant ~~president~~to ~~and~~the aSCE ~~control~~interconnection ~~person~~requests offor ~~the~~solar ~~Company,~~PV isprojects ~~the~~Coronus ~~chairman,~~Joshua ~~chief~~Tree ~~executive~~East ~~officer,~~1 and a5, ~~control~~Coronus ~~person~~shall ofpost ~~Solar~~with ~~Krafte.~~SCE ~~Mark~~the ~~Burgert,~~second ainterconnection ~~control~~financial ~~person~~securities, ofin the ~~Company,~~amounts isof ~~the~~$66,950 ~~president~~ and a$171,550, ~~control person of Solar Krafte~~respectively. OnThe ~~October~~posting ~~24,~~amount ~~2012,~~for the ~~Company’s~~Joshua ~~board~~Tree ofEast ~~directors~~1 ~~approved~~project ~~Coronus’~~was ~~entry~~determined ~~into~~by the ~~Industry~~results ~~Solar~~of PVthe ~~Asset~~SIS ~~Sale~~study ~~Agreement.~~SCE Ascommenced awith ~~director~~Coronus ofon ~~the~~February ~~Company~~23, Mr2012. ~~Thachuk~~The ~~declared~~posting ~~his~~amount ~~interest~~for in the ~~transaction~~Joshua ~~and~~Tree ~~abstained~~East ~~from~~5 ~~voting~~project onwas determined by the ~~approval~~results of the ~~Industry~~FAS ~~Solar~~study PVSCE ~~Asset~~commenced ~~Sale~~with ~~Agreement~~Coronus on January 25, 2013.

(gv) ~~Biological~~Second ~~Habitat~~Posting &of ~~Cultural~~Interconnection ~~Assessments~~Financial Security for Projects Coronus Joshua Tree East 2, 3 and 4

On ~~November~~September 243, ~~2012~~2013, ~~Coronus~~pursuant ~~entered~~to ~~into~~the aSCE ~~Biological~~interconnection ~~Habitat~~requests ~~Assessment~~for ~~Agreement~~solar ~~(the~~PV ~~“Bio~~projects ~~Assessment~~Coronus ~~Agreement”)~~Joshua ~~with~~Tree ~~Phoenix~~East ~~Biological Consulting~~2, ~~LLC~~3 ~~(“Phoenix”)~~and 4, ~~where~~Coronus ~~Phoenix~~shall ~~was~~post towith ~~conduct~~SCE ~~field~~the ~~work~~second ~~and~~interconnection ~~prepare~~financial ~~biological~~securities, ~~habitat~~in ~~assessment technical reports (~~the ~~“Scope~~amounts of ~~Services”) for Coronus projects Adelanto West~~$63, ~~Apple Valley East~~250, ~~Phelan South~~$48, ~~Yucca Valley East~~650, ~~Joshua~~and ~~Tree East~~$105, ~~29-Palms North~~450, ~~and~~respectively. ~~29-Palms~~The ~~Morongo,~~posting amounts for ~~submittal~~the toJoshua ~~the~~Tree ~~city~~East 2 and~~/or~~ ~~county~~3 ~~planning~~projects ~~department~~were todetermined ~~satisfy~~by the ~~initial~~results ~~biological studies component~~ of the ~~California~~SIS ~~Environmental~~studies ~~Quality~~SCE ~~Act.~~commenced ~~The~~with ~~estimated~~Coronus ~~cost~~on ~~for~~February ~~performing the Scope of Services was $32~~23,~~500~~ 2012. ~~Coronus~~The ~~paid~~posting ~~$16,250~~amount onfor ~~entering into~~ the ~~Bio~~Joshua ~~Assessment~~Tree ~~Agreement.~~East ~~The~~4 ~~balance~~project was ~~due~~determined ~~within~~by ~~thirty~~the ~~business~~results ~~days after receipt~~ of the ~~technical~~SIS ~~reports.~~study ~~Coronus~~SCE ~~received~~commenced ~~the~~with ~~technical~~Coronus ~~reports~~ on ~~January~~June 1725, ~~2013~~2012.

~~On November 24, 2012, Coronus entered into a Cultural Resources Assessment Agreement~~ (~~the “Cultural Assessment Agreement”~~vi) ~~with~~Second ~~Phoenix,~~Posting ~~where~~of ~~Phoenix~~Interconnection ~~was~~Financial toSecurity ~~perform cultural records searches, conduct field work, and prepare cultural resources assessment technical reports (the “Scope of Services”)~~ for Projects Coronus ~~projects~~ Adelanto West, ~~Apple~~1 ~~Valley East, Phelan South, Yucca Valley East, Joshua Tree East, 29-Palms North,~~ and 29-Palms Morongo, for submittal to the city and/or county planning department to satisfy the initial cultural studies component of the California Environmental Quality Act. The estimated cost for performing the Scope of Services was $24,900. Coronus paid $12,450 on entering into the Cultural Assessment Agreement. The balance was due within thirty business days after receipt of the technical reports. Coronus received the technical reports on January 17, 2013.2

~~(h)~~On ~~Aegis~~or ~~Solar~~around September 3, 2013, pursuant to the SCE interconnection requests for solar PV ~~Asset~~projects ~~Sale~~Coronus ~~Agreement~~Adelanto West 1 and 2, Coronus shall post with SCE the second interconnection financial securities, in the amounts of $18,330 and $19,130, respectively. The posting amounts for the Coronus Adelanto West 1 and 2 projects were determined by the results of the SIS studies SCE commenced with Coronus on April 13, 2012.

~~On December 27, 2012, the Company entered into a sale agreement for utility-scale, ground-mount, solar PV power systems~~ (~~the “Aegis Solar Power System Sales Agreement”~~d) ~~with~~Biological ~~Sycamore~~Habitat ~~Physicians~~& ~~Partners~~Cultural LLC and Aegis Energy Partners LLC (collectively, the “Buyer”). Under the Aegis Solar Power System Sales Agreement, the Company agreed to sell to the Buyer 2.7 MW_ac of turnkey, utility-scale, ground-mount, solar PV power systems (the “Solar PV Systems”), engineered, procured and constructed by Belectric, Inc. (“Belectric”), at a contract price of $2.15 per W_dc, inclusive of taxes. Assuming a dc/ac ratio of 1.25, the contract price would be $7,256,250. The Aegis Solar Power System Sales Agreement was subject to Belectric approval. On Belectric approval, the Buyer was to pay the Company $50,000.Assessments

On November 24, 2012, Coronus entered into a Biological Habitat Assessment Agreement (the “Bio Assessment Agreement”) with Phoenix Biological Consulting, LLC (“Phoenix”), where Phoenix was to conduct field work and prepare biological habitat assessment technical reports (the “Scope of Services”) for Coronus projects Adelanto West, Apple Valley East, Phelan South, Yucca Valley East, Joshua Tree East, 29-Palms North, and 29-Palms Morongo, for submittal to the city and/or county planning department to satisfy the initial biological studies component of the California Environmental Quality Act. The estimated cost for performing the Scope of Services was $32,500. Coronus paid $16,250 on entering into the Bio Assessment Agreement. The balance was due within thirty business days after receipt of the technical reports. Coronus received the technical reports on January 17, 2013, and paid the balance due on January 28, 2013.

On November 24, 2012, Coronus entered into a Cultural Resources Assessment Agreement (the “Cultural Assessment Agreement”) with Phoenix, where Phoenix was to perform cultural records searches, conduct field work, and prepare cultural resources assessment technical reports (the “Scope of Services”) for Coronus projects Adelanto West, Apple Valley East, Phelan South, Yucca Valley East, Joshua Tree East, 29-Palms North, and 29-Palms Morongo, for submittal to the city and/or county planning department to

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Table of Contents

CORONUS SOLAR INC.

(A Development Stage Enterprise)

Notes to Consolidated Financial Statements

(Expressed in U.S. Dollars)

~~Nine~~Period ~~Months~~ Ended ~~December~~June 3130, ~~2012~~2013

~~(Unaudited)~~Note 15 – Commitments – Continued

~~Note~~(d) 19Biological –Habitat ~~Commitments~~& Cultural Assessments- Continued

~~(h)~~satisfy ~~Aegis~~the ~~Solar~~initial PVcultural ~~Asset~~studies ~~Sale~~component of the California Environmental Quality Act. The estimated cost for performing the Scope of Services was $24,900. Coronus paid $12,450 on entering into the Cultural Assessment Agreement. -The ~~Continued~~balance was due within thirty business days after receipt of the technical reports. Coronus received the technical reports on January 17, 2013, and paid the balance due on January 28, 2013.

~~Under~~On ~~the~~January ~~Aegis~~26, ~~Solar~~2013, ~~Power~~Coronus ~~System~~entered ~~Sales~~into ~~Agreement,~~a ~~the~~Biological ~~Buyer~~Survey ~~was~~Agreement ~~to provide~~ (the ~~site~~“Biological ~~for~~Survey ~~the~~Agreement”) ~~Solar~~with ~~PV Systems~~Phoenix, ~~pay~~where ~~for~~Phoenix ~~the~~is ~~utility~~to ~~interconnection~~perform ~~and~~focused ~~land~~biological ~~use~~surveys ~~permit~~for ~~procurement~~Coronus ~~costs~~projects Adelanto West, ~~and~~29-Palms ~~obtain~~North, ~~the~~Joshua ~~land~~Tree ~~use~~East, ~~permit.~~Yucca ~~Additionally~~Valley East, ~~the~~and ~~Buyer~~Apple ~~was~~Valley toEast. ~~provide~~The ~~Belectric~~focused ~~with~~biological ~~satisfactory~~survey ~~proof~~scope of ~~secured~~work ~~financing,~~includes ~~prior~~surveys tofor ~~the~~desert ~~commencement~~tortoise, ofburrowing ~~construction~~owl, ofMohave ~~the~~ground ~~Solar~~squirrel, PVand ~~Systems~~rare plants. ~~Under~~Additionally, the ~~Aegis~~scope ~~Solar~~of ~~Power~~work ~~System~~includes ~~Sales~~lake ~~Agreement,~~and ~~Belectric~~streambed ~~was~~delineation, toas ~~provide~~well ~~all~~as ~~services necessary for delivery to~~ the ~~Buyer~~development of ~~turnkey,~~Joshua ~~operation~~tree ~~ready,~~relocation ~~Solar~~and PVmanagement ~~Systems~~plans. ~~Belectric~~The ~~was~~estimated tototal ~~design~~cost ~~the~~for ~~Solar~~performing PVthe ~~Systems~~work tois ~~optimize revenue~~$137,310. ~~with~~The ~~emphasis~~work ~~placed~~was onexpected ~~the~~to ~~utility’s~~begin, ~~time~~and ofdid, ~~delivery~~in ~~periods~~March, 2013, and ~~factors.~~will ~~Additionally,~~continue ~~Belectric~~up ~~was~~through toJuly, be2013. ~~responsible~~Coronus ~~for~~is ~~managing~~billed at the ~~operation~~end of ~~the~~each ~~Solar~~month ~~PV Systems,~~ for athe ~~period~~services ofrendered ~~five~~during ~~years~~that month, and ~~would~~Coronus ~~receive~~pays, ~~for the operating~~ and ~~maintenance~~agrees ~~services~~ to ~~be provided~~pay, ~~remuneration~~Phoenix inwithin ~~the~~one ~~amount~~month ~~of $22.50 per kW_dc per year, inclusive of a standard escalation of 2% per year,~~ after ~~year~~receiving ~~one~~each invoice.

OnNote ~~February~~16 ~~10,~~– ~~2013,~~Subsequent ~~the Company terminated the Aegis Solar Power System Sales Agreement with the Buyer. The Company failed to obtain the Belectric approval, as required.~~Events

(ia) ~~Earthlight~~ ~~Consultancy~~San Bernardino County Moratorium on Approval of Commercial Solar Energy Generation Projects

On ~~December~~June 2612, ~~2012~~2013, ~~effective~~the ~~January~~San 1,Bernardino ~~2013,~~County ~~Coronus~~Board ~~agreed~~of toSupervisors ~~engage~~approved ~~Earthlight~~a ~~Solar~~45-day ~~Inc.~~temporary ~~("Earthlight")~~moratorium ason aapproval ~~consultant,~~of ~~with~~commercial ~~Earthlight~~solar ~~providing~~energy ~~Coronus~~generation ~~with~~projects. ~~advisory~~The ~~and~~purpose ~~consulting~~of ~~services (~~the ~~"Services")~~moratorium inwas ~~respect~~to prevent establishment of ~~Cornus'~~commercial solar ~~photovoltaic~~energy ~~business.~~generation ~~Under~~projects ~~the~~that ~~engagement,~~may ~~Coronus~~be isincompatible towith ~~pay~~existing ~~Earthlight~~land $8uses,~~000~~ ~~per~~while ~~month (~~the ~~"Fee")~~County ~~for~~contemplate potential amendments to the ~~Services,~~Development ~~with~~Code for the ~~Fee~~purpose ~~due~~of ensuring and ~~payable~~enhancing atcompatibility ~~the~~between ~~end~~solar ofenergy ~~each~~generation ~~month.~~projects ~~Mark~~and ~~Burgert,~~surrounding aland ~~control~~uses. ~~person~~Coronus ofprojects ~~the~~29-Palms ~~Company~~North, isYucca ~~the~~Valley ~~president~~East, Joshua Tree East, and aApple ~~control~~Valley ~~person~~East ~~(sole~~are ~~owner)~~subject ofto ~~Earthlight~~the moratorium. Coronus project Adelanto West is not.

~~Note~~On 20July -23, ~~Subsequent~~2013, ~~Events~~the Board of Supervisors extended the moratorium for 10 months and 15 days, but said they hoped to put new regulations in place and lift the ban sooner than that. San Bernardino County Land Use Services Department Planning Director Terri Rahhal said the planners are working with a consultant and hope to return to the Board of Supervisors in three to six months with new regulations that would include location criteria, design standards and rules for processing applications. The Board of Supervisors could lift the moratorium at that time.

~~See~~As ~~Note~~a ~~15,~~consequence ~~Note~~of ~~19(c)(i),~~the ~~Note~~moratorium ~~19(c)(ii)~~extension, ~~Note~~Coronus ~~19(c)(iii)~~formally withdrew its SCE interconnection requests for Coronus solar PV systems 29-Palms North 2 and 3. The interconnection time stipulated in the combined system impact and facility study reports for these two systems is 12 months. To meet these interconnection timelines, ~~Note~~without 19exceeding the drop dead timelines of the systems' power purchase agreements (f“CREST PPAs”)~~(iii)~~, ~~Note~~Coronus ~~19(f)(iv)~~would need to start construction now, ~~Note~~without ~~19(g)~~delay. In the face of the San Bernardino County permit approval moratorium, ~~and~~this ~~Note~~is ~~19(i)~~not possible. As a consequence of the interconnection request withdrawals, Coronus is entitled to a release of the interconnection financial

(a) Power Purchase Agreements

(i) Power Purchase Agreements for Projects Coronus Adelanto West 1 and 2

On January 15, 2013 (the “Adelanto West PPAs Effective Date”), Coronus’ wholly-owned subsidiaries, Coronus Adelanto West 1 LLC and Coronus Adelanto West 2 LLC, entered into two identical Power Purchase Agreements (the “Adelanto West PPAs”) with SCE. The Adelanto West PPAs relate to Coronus’ applications for interconnection service and the CREST tariff for two 1.5 MW solar PV power systems (the “Adelanto West 1 and Adelanto West 2 Projects”) on the 40 acre parcel of vacant land, situated in the City of Adelanto, California, Coronus acquired on April 19, 2012 (see Note 7).

The Adelanto West PPAs are standardized, must-take, full buy/ sell, power purchase agreements, where SCE purchases all of the Adelanto West 1 and Adelanto West 2 Projects’ generation, net of station use. The term of the Adelanto West PPAs is 20 years. The price SCE pays for the generation shall be premised on the adopted 2011 Market Price Referent, and shall be adjusted according to SCE’s time of delivery periods and energy allocation factors, as scheduled in the Adelanto West PPAs. Initial operation of the Adelanto West 1 and Adelanto West 2 Projects must be no later than eighteen months from the Adelanto West PPAs Effective Date. The Adelanto West PPAs include, but are not limited to, provisions in respect of termination, facility operation, billing and payment, curtailment, and insurance. Additionally, on or before the thirtieth day following the Adelanto West PPAs Effective Date, Coronus is required to post and maintain development fees (the “Adelanto West PPAs Development Securities”) equal to $37,604 per Adelanto West PPA. If, on or before initial operation, Coronus demonstrates to SCE's satisfaction that it has installed all of the equipment or devices necessary for Coronus to satisfy the gross power rating of the generating facilities, SCE shall return the Adelanto West PPAs Development Securities to Coronus within thirty days of each facility’s initial operation.

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CORONUS SOLAR INC.

(A Development Stage Enterprise)

Notes to Consolidated Financial Statements

(Expressed in U.S. Dollars)

~~Nine~~Period ~~Months~~ Ended ~~December~~June 3130, ~~2012~~2013

~~(Unaudited)~~Note 16 – Subsequent Events – Continued

~~Note~~(a) 20San -Bernardino ~~Subsequent~~County ~~Events~~Moratorium on Approval of Commercial Solar Energy Generation Projects- Continued

~~(a)~~security ~~Power~~postings ~~Purchase~~Coronus ~~Agreements~~deposited -with ~~Continued~~SCE in respect of these two projects, in the cumulative amount of $864,600, less the costs, if any, SCE charged to these two projects.

~~(i)~~As ~~Power~~a ~~Purchase~~consequence ~~Agreement~~of ~~for~~the ~~Project~~moratorium extension, Coronus ~~Yucca~~also ~~Valley~~put ~~East~~a 3formal request to SCE to terminate the CREST PPAs in respect of these two projects, and asked SCE to return to Coronus the development securities Coronus posted with SCE under the CREST PPAs, in the amounts of $38,250 and $38,250, respectively.

~~On January 15, 2013~~ (~~the “Yucca Valley East 3 PPA Effective Date”~~b), ~~Coronus’~~Second ~~wholly-owned~~Posting ~~subsidiary,~~of ~~Coronus~~Interconnection ~~Yucca~~Financial ~~Valley~~Security ~~East~~for 3Project ~~LLC entered into a Power Purchase Agreement (the “Yucca Valley East 3 PPA”) with SCE. The Yucca Valley East 3 PPA relates to~~ Coronus’ ~~application~~Apple ~~for interconnection service and the CREST tariff for a third 1.5 MW solar PV power system (the “Yucca~~ Valley East ~~3 Project”) on the 34.07 acre parcel of vacant land, situated east of Yucca Valley, in the County of San Bernardino, California, Coronus acquired on August 17, 2012 (see Note 7).~~2

~~The~~On ~~Yucca~~July ~~Valley East 3 PPA is a standardized~~27, ~~must-take~~2013, ~~full~~pursuant ~~buy/~~to ~~sell,~~the ~~power~~SCE ~~purchase~~interconnection ~~agreement,~~requests ~~where~~for ~~SCE~~solar ~~purchases~~PV ~~all~~project ofApple ~~the Yucca~~ Valley East ~~3 Project’s generation~~2, ~~net~~Coronus ofposted ~~station~~with ~~use. The term of the Yucca Valley East 3 PPA is 20 years. The price~~ SCE ~~pays for~~ the ~~generation~~second ~~shall~~interconnection befinancial ~~premised on the adopted 2011 Market Price Referent~~security, ~~and shall be adjusted according to SCE’s time of delivery periods and energy allocation factors, as scheduled~~ in the ~~Yucca~~amount ~~Valley East 3 PPA. Initial operation~~ of ~~the Yucca Valley East 3 Project must be no later than eighteen months from the Yucca Valley East 3 PPA Effective Date~~$24,580. The ~~Yucca~~posting ~~Valley~~amount ~~East~~for ~~3 PPA includes, but is not limited to, provisions in respect of termination, facility operation, billing and payment, curtailment, and insurance. Additionally, on or before~~ the ~~thirtieth~~Apple ~~day following the Yucca~~ Valley East 32 ~~PPA~~project ~~Effective~~was ~~Date,~~determined ~~Coronus~~by ~~is required to post and maintain a development fee (~~the ~~“Yucca~~results ~~Valley East 3 PPA Development Security”) equal to $37,604. If, on or before initial operation, Coronus demonstrates to SCE's satisfaction that it has installed all~~ of the ~~equipment~~FAS orstudy ~~devices~~SCE ~~necessary~~commenced ~~for~~with Coronus toon ~~satisfy~~December ~~the gross power rating of the generating facility~~18, ~~SCE shall return the Yucca Valley East 3 PPA Development Security to Coronus within thirty days of the facility’s initial operation~~2012.

(bc) ~~Interconnection~~Share ~~Financial~~Purchase ~~Security~~and ~~Postings~~Development Services Agreement & Senior Secured Promissory Note

~~(i)~~On ~~Initial~~August ~~Posting~~9, of2013, ~~Interconnection~~the ~~Financial~~Company ~~Security~~and ~~for~~Coronus ~~Projects~~entered ~~Coronus~~into ~~Joshua~~a ~~Tree~~share ~~East~~purchase 1,and 2,development 3,services 4agreement (the “Share Purchase and 5Development Services Agreement”) with Redwood Solar Development LLC (“Redwood”).

OnUnder ~~January~~the 9,Share ~~2013,~~Purchase ~~pursuant~~and toDevelopment Services Agreement, the ~~SCE~~Company ~~interconnection~~has ~~requests~~agreed ~~for~~to ~~solar~~sell PV100% ~~projects~~of ~~Coronus~~the ~~Joshua~~issued ~~Tree~~and ~~East~~outstanding 1,shares 2,of 3Coronus to Redwood, 4in ~~and~~addition 5,to ~~Coronus~~performing ~~posted~~certain ~~with~~development ~~SCE~~services ~~the~~in ~~initial~~respect ~~interconnection~~of ~~financial~~the ~~securities~~twelve anticipated, inutility-scale, ~~the~~solar ~~amounts~~PV projects of ~~$41~~Coronus,~~200,~~ ~~$82,400,~~for $418,~~200~~775,000 ~~$58~~(the “Contract Price”). Redwood shall pay the Contract Price by issuing to the Company,~~800~~ ~~and~~a ~~$141~~non-interest bearing,~~200,~~ ~~respectively~~secured debenture (the “Redwood Debenture”). The ~~posting~~Company’s ~~amounts~~obligation ~~for~~to complete the ~~Joshua~~sale ~~Tree~~is ~~East~~subject, 1in part, 2to ~~and~~1) 3the ~~projects~~Company ~~were~~receiving ~~determined~~a byrelease from Clean Focus in respect of any further obligations under or in connection with the ~~results~~Loan [see Note 11(a)]; and 2) the approval of the ~~System~~Share ~~Impact~~Purchase ~~Studies~~and ~~Coronus~~Development ~~entered~~Services ~~into~~Agreement ~~with~~by ~~SCE~~the onCompany’s ~~February~~shareholders ~~23,~~holding ~~2012~~not less than two-thirds of its shares. ~~The~~Redwood’s ~~posting~~obligation ~~amounts~~to ~~for~~complete the ~~Joshua~~purchase ~~Tree~~is ~~East~~subject, 4in part, to 1) Redwood receiving lock-up agreements and 5proxies ~~projects~~from ~~were~~the ~~determined~~Company’s byshareholders holding not less than 80% of the ~~results~~Company’s shares; and 2) the approval of the ~~System~~Share ~~Impact~~Purchase ~~Studies~~and ~~Coronus~~Development ~~entered~~Services ~~into~~Agreement ~~with~~by ~~SCE~~the onCompany’s ~~June~~shareholders ~~25,~~holding ~~2012~~not less than 80% of the Company’s shares.

Prior to executing the Share Purchase and Development Services Agreement, Redwood received lock-up agreements and proxies from eleven of the Company’s shareholders, who, in aggregate, hold 79.9% of the Company’s shares. On August 14, 2013, Redwood received a further lock-up agreement and proxy from a shareholder who holds 117,000 shares, which now gives rise to lock-up agreements and proxies from twelve of the Company’s shareholders, who, in aggregate, hold 80.6% of the Company’s shares.

The Company is scheduled to hold an annual and special meeting of its shareholders (the “Meeting”) on September 16, 2013, at which time, the Company’s shareholders will vote, by proxy or in person, on whether to approve the Share Purchase and Development Services Agreement. The closing date (the “Closing Date”) means the date on which the closing will occur, which will be not more than three business days following the date of the Meeting.

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Table of Contents

~~(ii)~~CORONUS ~~Second~~SOLAR ~~Posting of Interconnection Financial Security for Project Coronus 29-Palms North 1~~INC.

On(A ~~February~~Development 1,Stage 2013, pursuant to the SCE interconnection request for solar PV project Coronus 29-Palms North 1, Coronus posted with SCE the second interconnection financial security, in the amount of $14,750. This amount was determined by the results of the Combined System Impact and Facility Study Agreement Coronus entered into with SCE on June 16, 2011.Enterprise)

~~(c)~~Notes ~~Utility~~to ~~Interconnection~~Consolidated ~~Studies~~Financial Statements

(i)Expressed ~~FAS~~in ~~Study~~U.S. ~~Agreement for Project Coronus Joshua Tree East 1~~Dollars)

OnPeriod ~~January~~Ended 25, 2013, Coronus entered into a Facilities Study Agreement (the “FAS Agreement for Joshua Tree East 1”) with SCE. The FAS Agreement relates to Coronus’ application for interconnection service and the CREST tariff for a 1.5 MW solar PV system on the 56.03 acre parcel of vacant land, situated east of Joshua Tree, in the County of San Bernardino, California, Coronus acquired on June 30, ~~2011 (see Note 7).~~2013

~~The~~Note ~~FAS~~16 ~~Agreement~~– ~~sets~~Subsequent ~~forth~~Events ~~the~~– terms and conditions for SCE to perform a facilities study to determine the impacts that would result from interconnecting the PV system and the adequacy of SCE’s electrical system to accommodate it. In addition, SCE shall make a refined determination of the required interconnection facilities and distribution system upgrades, and any other modifications or additions that would be needed, to accommodate the PV system. The estimated cost of the study is $15,000. On entering into the FAS Agreement, Coronus paid SCE the $15,000 deposit.Continued

(dc) ~~Acquisition~~Share ofPurchase ~~Vacant~~and ~~Land~~Development Services Agreement & Senior Secured Promissory Note - Continued

~~(i)~~In ~~29-Palms~~the ~~Morongo~~event the required percentages of the shareholder votes are met under the Share Purchase and Development Services Agreement, upon the transfer of Coronus to Redwood, all then outstanding advances under the Loan, together with all accrued but unpaid interest, will be assumed as part of the transfer. In the event the required percentages of our shareholder votes are not met under the Share Purchase and Development Services Agreement, we shall owe Redwood a break-up fee of $5,000,000, which will be immediately due and payable. In addition, the Loan will be in immediate default, and will become due and payable, with us confessing judgment to the immediate exercise of remedies allowed with respect to the default of the Loan, including, without limitation, a declaration of foreclosure on the Coronus land parcels and the seizure of all assets of Coronus.

OnThe ~~October~~Contract ~~24,~~Price ~~2012,~~is ~~Coronus~~the ~~entered~~agreed ~~into~~upon aprice ~~Vacant~~of ~~Land~~$0.39/Wp, ~~Purchase~~which ~~Agreement~~is (the ~~“29-Palms~~estimated ~~Morongo~~final ~~Agreement”).~~output ~~Under~~capacity of the ~~29-Palms~~twelve ~~Morongo~~anticipated, ~~Agreement~~utility-scale, ~~Coronus~~solar ~~agrees~~PV toprojects ~~acquire~~of aCoronus, ~~24.23~~and ~~acre~~is ~~parcel~~based ofon ~~vacant~~the ~~land,~~aggregate ~~situated~~of ~~north~~the value of ~~29-Palms,~~the ininstalled solar PV systems and the ~~County~~value of ~~San~~the ~~Bernardino,~~development ~~California~~services to be performed by the Company. The ~~purchase~~payment ~~price~~of isthe ~~$86~~Contract Price,~~683,~~ ~~all~~and ~~cash.~~the ~~Close~~corresponding retirement of ~~escrow~~the ~~was~~Redwood ~~January 31~~Debenture, ~~2013.~~is ~~Coronus~~as ~~deposited~~follows: 1) $1,000 ~~into~~was ~~escrow~~paid ~~and~~to ~~agrees~~the toCompany ~~deposit~~on anthe ~~additional~~execution of the Share Purchase and Development Services Agreement; 2) $859,~~683~~000 ~~within~~shall ~~sufficient~~be ~~time~~paid to ~~close~~the ~~escrow.~~Company ~~Effective~~on ~~January~~the ~~31,~~Closing ~~2013,~~Date; ~~under~~3) ~~the~~after ~~29-Palms~~four ~~Morongo~~solar ~~Agreement,~~PV ~~Coronus~~systems ~~has~~have ~~been~~met ~~replaced~~certain asconditions, ~~Purchaser~~inclusive ~~with~~of the ~~Company’s~~receipt ~~wholly-owned~~of ~~subsidiary~~conditional ~~Coronus~~use ~~29-Palms~~permits, ~~Morongo~~a ~~LLC.~~payment ~~Additionally,~~of 5% of the ~~close~~Contract ofPrice, ~~escrow~~per ~~has~~solar ~~been~~PV ~~extended~~system, shall be paid to ~~March~~the 31Company, ~~2013~~estimated to be $36,563 per system; and 4) the 29balance of the Contract Price shall be pro-~~Palms~~rated ~~Morongo~~among ~~Agreement~~the istwelve ~~now~~solar ~~subject~~PV tosystems ~~Coronus~~with 29each pro-~~Palms~~rata ~~Morongo~~portion ~~LLC’s~~paid ~~board~~to ofthe ~~director~~Company ~~approval~~ on orpermanent ~~before~~financial ~~March~~close ~~24,~~in ~~2013~~connection with the construction of each system.

~~(ii)~~Under ~~Apple~~the ~~Valley~~Share ~~East~~Purchase Reand Development Services Agreement, the Contract Price is subject to adjustment, upwards or downwards, as appropriate, based, in part, on the following parameters: installed capacity; development expense budget true-~~Site~~up; interconnection refund true-up; and Coronus financial statements true-up. Under the Share Purchase and Development Services Agreement, ~~(McGee)~~forward looking, Redwood agrees to fund, and the Contract Price reflects Redwood funding, certain development expenses that are separate and aside from the Contract Price. The Company understand and agree that the Redwood Debenture security interests received by the Company will be subordinate and junior to the interests securing the Loan, as well as subordinate and junior to all future draws under the Loan where the proceeds are used to fund those certain development expenses.

On ~~February~~August 89, 2013, ~~Coronus~~by ~~entered~~way ~~into~~of aaddendum ~~Vacant Land Purchase Agreement~~ (the ~~“Apple~~"Loan ~~Valley East Re-Site Agreement (McGee~~Addendum")~~”).~~, ~~Under~~ the ~~Apple~~Maturity ~~Valley~~Date ~~East~~under ~~Re-Site~~the ~~Agreement~~Loan ~~(McGee),~~was ~~Coronus~~extended. ~~agrees~~The toNote ~~acquire~~is anow ~~8.91~~due ~~acre~~on ~~parcel~~the earlier of ~~vacant~~i) ~~land,~~the ~~situated~~date ~~east~~ of ~~Apple~~the ~~Valley~~Meeting, in the ~~County~~event ofthat ~~San Bernardino, California, from~~ the ~~McGee~~Share ~~Living~~Purchase ~~Trust.~~and ~~The~~Development ~~purchase~~Services ~~price~~Agreement is ~~$100,000.~~not ~~Close~~approved ofat ~~escrow~~the ~~is February 28~~Meeting, ~~2013.~~or ~~Coronus~~ii) ~~deposited~~the ~~$10,000 into escrow and agrees to deposit an additional $90,000 within sufficient time to~~ close ~~escrow.~~of ~~The~~business ~~Apple~~on ~~Valley~~the ~~East~~Closing ~~Re-Site~~Date ~~Agreement~~as ~~(McGee)~~defined isin ~~contingent~~the onShare ~~the~~Purchase ~~clear~~and ~~transfer~~Development ofServices ~~title~~Agreement.

Note 17 – Comparative Figures

Certain figures for the prior period have been reclassified to conform to the current period consolidated financial statements presentation.

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ITEM 2.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

This section of the quarterly report on Form 10-Q includes a number of forward-looking statements that reflect our current views with respect to future events and financial performance. Forward-looking statements are often identified by words like: believe, expect, estimate, anticipate, intend, project and similar expressions, or words which, by their nature, refer to future events. You should not place undue certainty on these forward-looking statements, which apply only as of the date of this quarterly report. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or our predictions.

Plan of Operation

Estimates and Assumptions

In the preparation of our financial statements, no estimates have been used since there is insufficient historical information in which to base such estimates.

Trends Affecting Our Business

In the past four years, solar module prices have been reduced by more than half, due to the impact of the global economic downturn, reduced silicon prices, increased polysilicon supply, and a general oversupply of solar modules on the market. Although we expect solar module prices to stay at current levels, or continue to decline, but not as drastically, a rebound in solar module prices would materially impact the viability of our business model, possibly rendering our model nonviable.

~~Plan~~Regulatory ~~of Operation for the Next Twelve Months~~Risk

~~Our~~On ~~efforts~~July ~~are~~2, ~~focused~~2013, on ~~raising~~June ~~capital~~12, ~~through~~2013, the ~~sale~~San ofBernardino ~~common~~County ~~stock~~Board inof ~~private~~Supervisors ~~placements~~approved toa ~~position~~45-day ustemporary ~~with~~moratorium ~~sufficient~~on ~~funds~~approval toof ~~execute~~commercial onsolar ~~the~~energy ~~business~~generation ~~plan~~projects. The purpose of ~~Coronus,~~the ~~our~~moratorium ~~wholly-owned~~is ~~subsidiary.~~to ~~Coronus~~prevent isestablishment aof ~~development-stage~~commercial ~~company~~solar ~~founded~~energy togeneration ~~deploy~~projects ~~and~~that ~~operate~~may ~~utility-scale~~be ~~solar~~incompatible ~~photovoltaic~~with ~~(PV)~~existing ~~power~~land ~~systems~~uses, inwhile the ~~State~~County ofcontemplate ~~California.~~potential ~~The~~amendments ~~business~~to ~~plan~~the ofDevelopment ~~Coronus~~Code ~~calls~~ for 1) the ~~procurement~~purpose of ~~20-year,~~ensuring ~~“must-take”~~and ~~Power~~enhancing ~~Purchase~~compatibility ~~Agreements~~between ~~(PPAs)~~solar ~~from~~energy ~~Southern~~generation ~~California~~projects ~~Edison~~and ~~(SCE),~~surrounding ~~under~~land ~~the~~uses. ~~California~~Coronus ~~Public~~projects ~~Utilities~~29-Palms ~~Commission’s~~North, ~~(CPUC’s)~~Yucca ~~feed-in~~Valley ~~tariff~~East, ~~for~~Joshua ~~small~~Tree ~~generators~~East, and 2)Apple ~~the~~Valley ~~development~~East ofare ~~the~~subject ~~corresponding,~~to ~~utility-scale,~~the 1moratorium.5 MWCoronus ~~solar~~project PVAdelanto ~~power~~West ~~systems~~is not. The ~~“CREST”~~moratorium ~~tariff~~may isbe ~~SCE’s~~extended ~~allocation~~by further action of the ~~feed-in~~Board ~~tariff~~of Supervisors, initially for ten months and 15 days and then again for one year.

On ~~June~~July 3023, ~~2011~~2013, ~~Coronus completed~~ the ~~Vacant~~Board ~~Land~~of ~~Purchase~~Supervisors ~~Agreement~~extended (the ~~“Joshua~~moratorium ~~Tree~~for ~~East~~10 ~~Agreement”),~~months ~~which~~and ~~Coronus~~15 ~~entered into on May 9~~days, ~~2011.~~but ~~Under~~said ~~the~~they ~~Joshua~~hoped ~~Tree~~to ~~East~~put ~~Agreement,~~new ~~Coronus~~regulations ~~acquired~~in aplace ~~56.03~~and ~~acre~~lift ~~parcel~~the ofban ~~vacant~~sooner ~~land,~~than ~~situated~~that. ~~east~~San ofBernardino ~~Joshua Tree, in the~~ County ofLand ~~San~~Use ~~Bernardino,~~Services ~~California.~~Department AtPlanning ~~this~~Director ~~point~~Terri inRahhal ~~time,~~said wethe planners are ~~pursuing~~working ~~five~~with ~~interconnection~~a ~~agreements~~consultant ~~for~~and ~~five~~hope ~~1.5~~to MWreturn ~~solar~~to PVthe ~~power~~Board ~~systems~~of ~~sited~~Supervisors onin ~~this~~three ~~parcel.~~to Tosix ~~date,~~months wewith ~~have~~new ~~obtained~~regulations ~~interconnection~~that ~~study~~would ~~results~~include ~~for~~location ~~the~~criteria, ~~five~~design ~~systems,~~standards and ~~have~~rules ~~entered~~for ~~into~~processing ~~five~~applications. ~~separate~~The ~~PPAs~~Board ~~with SCE, under the CREST tariff, in respect~~ of ~~these~~Supervisors ~~systems~~could ~~(see~~lift the ~~Joshua~~moratorium ~~Tree~~at ~~East~~that ~~PPAs below)~~time.

OnAs April 19, 2012, Coronus completed the Vacant Land Purchase Agreement (the “Adelanto West Agreement”), which Coronus entered into on September 23, 2011. Under the Adelanto West Agreement, Coronus acquired a 40consequence ~~acre parcel~~ of ~~vacant land, situated in~~ the ~~City~~moratorium ~~of Adelanto~~extension, ~~County~~Coronus offormally ~~San~~withdrew ~~Bernardino,~~its ~~California.~~SCE ~~At this point in time, we are pursuing multiple~~ interconnection ~~agreements~~requests for ~~1.5~~Coronus MW solar PV ~~power~~ systems ~~sited~~29-Palms onNorth ~~this~~2 ~~parcel.~~and ~~Specifically, we have two systems currently under utility study~~3. ~~At this point in time~~Additionally, weas ~~are~~a ~~pursuing~~consequence ~~two~~of ~~interconnection agreements for two 1.5 MW solar PV power systems sited on this parcel. To date, we have obtained interconnection study results for~~ the ~~two~~moratorium ~~systems~~extension, ~~and~~Coronus ~~have~~also ~~entered~~put ~~into~~a ~~two~~formal ~~separate~~request ~~PPAs~~to ~~with~~ SCE, ~~under~~to terminate the ~~CREST~~PPAs ~~tariff,~~ in respect of these ~~systems~~two ~~(see the Adelanto West PPAs below)~~projects.

On August 17, 2012, Coronus completed the Vacant Land Purchase Agreement (the “Yucca Valley East Agreement”), which Coronus entered into on October 9, 2011. Under the Yucca Valley East Agreement, Coronus acquired a 34.07 acre parcel of vacant land, situated east of Yucca Valley, in the County of San Bernardino, California. At this point in time, we are pursuing three interconnection agreements for three 1.5 MW solar PV power systems sited on this parcel. To date, we have obtained interconnection study results for the three systems, and have entered into three separate PPAs with SCE, under the CREST tariff, in respect of these systems (see the Yucca Valley East PPAs below).

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Table of Contents

OnPlan December 28, 2012, Coronus completed the Vacant Land Purchase Agreement (the “29-Palms North Re-Site Agreement”), which Coronus entered into on December 6, 2012. Under the 29-Palms North Re-Site Agreement, Coronus acquired a 160 acre parcel of ~~vacant~~Operation ~~land, situated north of Twentynine Palms, in the County of San Bernardino, California. At this point in time, we are pursuing three interconnection agreements~~ for ~~three 1.5 MW solar PV power systems sited on this parcel. To date, we have obtained interconnection study results for~~ the ~~three~~Next ~~systems,~~Twelve ~~and have entered into three separate PPAs with SCE, under the CREST tariff, in respect of these systems (see the 29-Palms North PPAs above).~~Months

On ~~January~~August 79, 2013, we and our wholly-owned subsidiary, Coronus ~~completed~~Energy ~~the~~Corp. ~~Vacant~~(“Coronus”), ~~Land~~entered ~~Purchase~~into ~~Agreement~~a share purchase and development services agreement (the ~~“Apple~~"Share ~~Valley~~Purchase ~~East~~and ~~Re-Site~~Development Services Agreement”"), ~~which~~with ~~Coronus~~Redwood ~~entered~~Solar ~~into~~Development onLLC ~~December 8, 2012~~("Redwood"). Under the ~~Apple~~Share ~~Valley~~Purchase ~~East~~and ~~Re-Site~~Development Services Agreement, ~~Coronus~~we ~~acquired~~have aagreed ~~14.78~~to ~~acre~~sell ~~parcel~~100% of ~~vacant~~the ~~land,~~issued ~~situated~~and ~~east~~outstanding shares of ~~Apple~~Coronus ~~Valley~~to Redwood, in ~~the~~addition ~~County~~to ofperforming ~~San~~certain ~~Bernardino,~~development ~~California.~~services ~~Additionally,~~in onrespect ~~February~~of 8the twelve anticipated, ~~2013~~utility-scale, solar PV projects of Coronus, ~~entered~~for ~~into~~$8,775,000 a(the ~~Vacant~~"Contract ~~Land~~Price"). ~~Purchase~~Redwood ~~Agreement~~shall (pay the ~~“Apple~~Contract ~~Valley~~Price ~~East~~by Reissuing to us, a non-~~Site~~interest ~~Agreement~~bearing, secured debenture (~~McGee)~~the “Redwood Debenture”). Our obligation to ~~acquire~~complete the ~~adjacent~~sale ~~8.91~~is ~~acre~~subject, ~~parcel~~in part, to 1) us receiving a release from Clean Focus in respect of ~~vacant~~any ~~land.~~further Atobligations ~~this~~under ~~point~~or in ~~time,~~connection wewith ~~are~~the ~~pursuing~~Loan; ~~two~~and ~~interconnection~~2) ~~agreements~~the ~~for~~approval ~~two~~of ~~1.5~~the MWShare ~~solar~~Purchase PVand ~~power~~Development ~~systems~~Services ~~sited~~Agreement onby ~~these~~our ~~two~~shareholders ~~adjacent~~holding ~~parcels.~~not Toless ~~date,~~than wetwo-thirds ~~have~~of ~~obtained~~our ~~interconnection~~shares. ~~study~~Redwood's ~~results~~obligation ~~for~~to complete the ~~two~~purchase ~~systems~~is subject, ~~and~~in ~~have~~part, ~~entered~~to ~~into~~1) ~~two~~Redwood ~~separate~~receiving ~~PPAs~~lock-up ~~with~~agreements ~~SCE,~~and ~~under~~proxies ~~the~~from ~~CREST~~our ~~tariff,~~shareholders inholding ~~respect~~not less than 80% of ~~these~~our ~~systems~~shares; ~~(see~~and 2) the ~~Apple~~approval ~~Valley~~of ~~East~~the ~~PPAs~~Share ~~below)~~Purchase and Development Services Agreement by our shareholders holding not less than 80% of our shares.

OnPrior ~~December~~to ~~20,~~executing ~~2012,~~the ~~Coronus~~Share Purchase and ~~Coronus’~~Development ~~wholly-owned~~Services ~~subsidiaries~~Agreement, ~~Coronus~~Redwood ~~29-Palms~~received ~~North 1 LLC, Coronus 29~~lock-~~Palms~~up ~~North~~agreements 2 LLC, Coronus 29-Palms North 3 LLC, Coronus Yucca Valley East 1 LLC, Coronus Yucca Valley East 2 LLC, Coronus Yucca Valley East 3 LLC, Coronus Joshua Tree East 1 LLC, Coronus Joshua Tree East 2 LLC, Coronus Joshua Tree East 3 LLC, Coronus Joshua Tree East 4 LLC, Coronus Joshua Tree East 5 LLC, Coronus Apple Valley East 1 LLC, Coronus Apple Valley East 2 LLC, Coronus Adelanto West 1 LLC, and ~~Coronus~~proxies ~~Adelanto~~from ~~West~~eleven 2of ~~LLC~~our ~~(collectively the “Project Companies”)~~shareholders, ~~conducted a non-brokered private placement~~who, ~~issuing~~in ~~a senior secured~~aggregate, ~~promissory~~hold ~~note~~79.9% ~~(the “Note”) to one investor, Clean Focus Financing Company, LP (“Clean Focus”), for proceeds~~ of upour ~~to $4,000,000 (the “Loan”) (see below)~~shares.

~~Pursuant~~We toare ascheduled ~~schedule~~to ofhold ~~draw~~an ~~dates~~annual and ~~amounts,~~special ~~Coronus~~meeting ~~was to, and is, requesting advances, in whole or in part,~~ of upour toshareholders (the ~~maximum amount of the Loan (each an “Advance”~~"Meeting"). ~~The Note is due~~ on ~~the~~September ~~earlier of i) 31 days after the total Advances equal $4~~16,~~000,000.00~~ ~~or ii) July 1~~2013, ~~2013 (the “Maturity Date”). The Note bears interest~~ at anwhich ~~annual rate of 6%~~time, ~~and~~our ~~such~~shareholders ~~interest~~will ~~shall~~vote, ~~accrue~~by ~~until~~proxy ~~the Maturity Date. On~~ or ~~before~~in ~~the Maturity Date~~person, ~~pursuant~~on towhether ~~the terms of a stock purchase agreement, yet~~ to beapprove ~~drafted,~~the weShare ~~will~~Purchase ~~transfer 100% ownership of Coronus~~ and ~~the~~Development ~~Project~~Services ~~Companies~~Agreement. toThe ~~Clean~~closing ~~Focus~~date ~~or designee. Upon~~ (the ~~transfer,~~"Closing ~~all~~Date") ~~then~~means ~~outstanding Advances under~~ the ~~Loan,~~date ~~together~~on ~~with~~which ~~all~~the ~~accrued~~closing ~~but~~will ~~unpaid interest~~occur, ~~shall~~which ~~either~~will be ~~converted~~not ~~into~~more ~~capital~~than ~~contributions~~three bybusiness ~~Clean~~days ~~Focus~~following orthe ~~assumed~~date ~~as part~~ of the ~~stock purchase price~~Meeting.

WeIn the event the required percentages of our shareholder votes are ~~currently~~not met under the Share Purchase and Development Services Agreement, we shall owe Redwood a break-up fee of $5,000,000, which will be immediately due and payable. In addition, the Loan will be in ~~negotiations~~immediate default, and will become due and payable, with ~~Clean~~us ~~Focus~~confessing injudgment ~~determining~~to the ~~terms~~immediate exercise of remedies allowed with respect to the ~~stock~~default ~~purchase~~of ~~agreement~~the Loan, ~~and~~including, ~~anticipate~~without ~~finalizing~~limitation, ~~the~~a ~~agreement~~declaration of foreclosure on orthe ~~before~~Coronus ~~March~~land ~~31,~~parcels ~~2013~~and the seizure of all assets of Coronus.

OnThe ~~October~~Contract ~~24,~~Price ~~2012,~~is ~~Coronus~~the ~~entered~~agreed ~~into~~upon aprice ~~Solar~~of ~~Photovoltaic~~$0.39/Wp, ~~Asset~~which ~~Sale~~is ~~Agreement (~~the ~~“Industry~~estimated ~~Solar~~final PVoutput ~~Asset~~capacity ~~Sale~~of ~~Agreement”)~~the ~~with~~twelve ~~Solar~~anticipated, ~~Krafte~~utility-scale, ~~Utilities~~solar ~~Inc.~~PV ~~(“Solar~~projects ~~Krafte”).~~of ~~Solar~~Coronus, ~~Krafte~~and ~~holds~~is abased ~~contract~~on tothe ~~purchase~~aggregate ~~Industry~~of ~~Solar~~the ~~Power~~value ~~Generation~~of ~~Station 1 LLC (“Industry”). Under~~ the ~~Industry~~installed ~~Solar~~solar PV ~~Asset~~systems ~~Sale~~and ~~Agreement,~~the ~~Coronus~~value ~~agreed~~of ~~to purchase Industry from Solar Krafte for $1,250,000 (~~the ~~“Cash~~development ~~Price”).~~services ~~Industry is a party~~ to abe ~~Power~~performed ~~Purchase~~by ~~Agreement~~us. ~~(the~~The ~~“Industry~~payment ~~PPA”)~~of ~~with SCE, under~~ the ~~CREST~~Contract ~~tariff~~Price, ~~for~~and ~~a 1.5 MW concentrated photovoltaic power system (~~the ~~“Industry~~corresponding ~~System”).~~retirement ~~Completion~~ of the ~~Industry~~Redwood ~~Solar~~Debenture, ~~PV Asset Sale Agreement~~ is ~~contingent~~as onfollows: ~~SCE approving~~ 1) a$1,000 ~~design~~was ~~change~~paid to ~~the~~us ~~Industry~~on ~~System,~~the 2)execution of the ~~invocation~~Share ofPurchase ~~Section~~and ~~2.9(c)~~Development ofServices ~~the~~Agreement; ~~Industry~~2) ~~PPA~~$9,000 ~~extending~~shall ~~the~~be ~~initial~~paid ~~operation~~to ~~deadline~~us ofon the ~~generating~~Closing ~~facility,~~Date; ~~and~~ 3) ~~the~~after ~~relocation~~four ofsolar ~~the~~PV ~~generating~~systems ~~facility~~have tomet ~~Coronus’~~certain ~~Adelanto~~conditions, ~~West~~inclusive ~~Parcel.~~of ~~Each party has~~ the ~~right~~receipt toof ~~terminate~~conditional ~~the~~use ~~Industry~~permits, ~~Solar~~a PVpayment ~~Asset~~of ~~Sale~~5% ~~Agreement~~of ~~effective upon notice to~~ the ~~other~~Contract ~~party~~Price, ifper ~~SCE~~solar ~~fails~~PV ~~to approve~~system, ~~within~~shall 90be ~~days~~paid ~~from~~to ~~October 24~~us, ~~2012,~~estimated ~~1) the design change~~ to ~~the~~be ~~Industry System~~$36,563 2)per ~~the~~system; ~~invocation~~and ~~of Section 2.9(c~~4) of the ~~Industry~~balance ~~PPA, or 3) the relocation~~ of the ~~generating~~Contract ~~facility~~Price toshall ~~Coronus’~~be ~~Adelanto~~pro-rated ~~West~~among ~~Parcel. As of~~ the ~~date~~twelve ofsolar ~~this~~PV ~~report,~~systems ~~neither~~with ~~party~~each ~~has~~pro-rata ~~exercised~~portion ~~its~~paid ~~right~~ to ~~terminate~~us ~~the~~on ~~Industry~~permanent ~~Solar~~financial PVclose ~~Asset Sale Agreement, as we are presently~~ in ~~negotiations~~connection with ~~SCE,~~the ~~asking~~construction ~~them~~of ~~for~~each ~~their approvals~~system.

InUnder ~~addition~~the toShare ~~the~~Purchase ~~above~~and Development Services Agreement, wethe ~~are~~Contract ~~presently~~Price ~~evaluating~~is ~~further~~subject ~~vacant~~to ~~lands~~adjustment, ~~ranging~~upwards or downwards, as appropriate, based, in ~~size~~part, ~~between~~on 20

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