RELATED PARTY TRANSACTIONS

12 Months Ended

Feb. 29, 2012

NOTE 7– RELATED PARTY TRANSACTIONS

The balance due to related parties of $715,417 at February 29, 2012 (2011 - $136,261) is due to officers, directors, and a company controlled by a director and/or shareholder of the Company and is unsecured, non-interest bearing and payable on demand.

The Company paid a total of $410,154 in management fees to officers and directors of the Company for the year ended February 29, 2012 (2011 - $632,600).

The Company has paid $80,640 to an officer and director of the Company to provide office space and office services for the year ended February 29, 2012 (2011 - $53,840).

During fiscal 2011, a shareholder advanced $650,000 to the Company pursuant to a Demand secured Promissory Note which bears interest at 10% per annum. During the twelve months ended February 29, 2012, the shareholder advanced a further $495,000 on the same terms as the original advances. As described further in Note 3, in connection with the sale of the East Holly properties by the Company, the purchaser assumed and paid $530,000 of these amounts resulting in a total of $615,000 owing to this shareholder. In addition, as at February 29, 2012, accrued interest was $92.953 which has been included in accounts payable and accrued liabilities. The Demand Secured Promissory Note had a due date of June 30, 2011. The due date was subsequently extended to July 31, 2011 and is currently due on demand. The Company entered into a general security agreement with the Secured Party in connection with this Demand Secured Promissory Note, and pursuant to the terms of the general security agreement, the Company filed UCC-1 financing statements in Louisiana, Mississippi and Texas and a Personal Property Security Act filing in British Columbia.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

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Reference 2: http://www.xbrl.org/2003/role/presentationRef

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Reference 3: http://www.xbrl.org/2003/role/presentationRef

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Reference 4: http://www.xbrl.org/2003/role/presentationRef

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef

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Reference 7: http://www.xbrl.org/2003/role/presentationRef

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Reference 8: http://www.xbrl.org/2003/role/presentationRef

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Reference 9: http://www.xbrl.org/2003/role/presentationRef

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+ Details

MAINLAND RESOURCES INC. 10-K/A