UA Granite Corp

A director has advanced funds to us for our legal, audit, filing fees, general office administration and cash needs. As of June 30, 2018, the director has advanced a total of $76,043 (March 31, 2018: $71,173). $4,870 of total advanced funds were made by current director, Angel Luis Reynoso Vasquez, during the current fiscal quarter as of June 30, 2018. The remaining advanced funds of $71,173 from prior reporting periods were made from former director, Myroslav Tsapaliuk. The advances are without specific terms of repayment. Imputed interest of $1,500 and $294 was charged to additional paid in capital during the three-month period ended June 30, 2018 and June 30, 2017, respectively.

On March 7, 2018, we entered into a Binding Letter of Intent (the "LOI") with Vortex Network, LLC, an Iowa limited liability company ("Vortex"), in connection with a proposed share exchange transaction between the Company and Vortex, whereby the Company will issue 65,000,000 shares of common stock to the existing members of Vortex in exchange for all the outstanding membership interests of Vortex (the "Share Exchange"). Effective March 30, 2018, the Company and Vortex entered into an amendment to clarify and amend certain terms set forth in the LOI and to extend the term of the LOI for a period of 90 days. Pursuant to the terms of the proposed Share Exchange, we will acquire all of the outstanding membership interests of Vortex in exchange for the issuance of 65,000,000 shares of common stock to the existing members of Vortex, and Vortex will become our wholly-owned subsidiary. Following the closing of the Share Exchange, the Company will be managed by Vortex's current management team, and our existing directors and officers will resign. If we are successful in closing the proposed Share Exchange, the business of Vortex will become our primary business. Vortex operates as a cryptocurrency holding company engaged in the business of mining crypto assets. If we are unable to close the proposed Share Exchange, we will need to consider other strategic alternatives for our Company.

Pursuant to the LOI, we made an initial LOI Advance in the amount of $750,000 to Vortex pursuant to the terms of a secured promissory note and security agreement dated March 7, 2018. The principal amount of the promissory note, together with accrued interest at the rate of 8.25% per annum, shall become due and payable upon maturity, which is defined as the first to occur of (a) an event of default, including, without limitation, the failure of the parties to close the Share Exchange on or before June 8, 2018, in which case the Company may declare the note due and payable, (b) the closing of the Share Exchange, in which case the promissory note will be cancelled as an intercompany loan, or (c) six (6) months following the date of termination of the LOI by the Company. The LOI contemplates an additional LOI Advance in the amount of $750,000 upon the completion by Vortex or the Company's waiver of certain conditions.

Our plan of operations over the next twelve months is to carry out a suitable business opportunity, with a primary focus on entering into a definitive agreement and completing the proposed Share Exchange with Vortex. We believe we will require a minimum of $1,800,000 in funding over the next twelve months to maintain current operations and pursue suitable business opportunities, including the proposed Share Exchange with Vortex.