NOTE 7 - RELATED PARTY TRANSACTIONS

On January 24, 2017, Mirage Energy Corporation, a Nevada corporation (“Mirage” or the “Company”) entered into an agreement with Mirage’s President and CEO, Mr. Michael Ward, whereby Mirage acquired all of the issued and outstanding shares of 4Ward Resources Inc., a Texas corporation (“4Ward Resources”) from Mr. Ward in exchange for 10,000,000 shares of Mirage’s Common Stock and 10,000,000 shares of Mirage’s Series A Preferred Stock. The acquisition of 4Ward Resources was completed on January 24, 2017.

On January 28, 2017, 4Ward Resources, Inc., Mirage Energy Corporation’s wholly owned subsidiary, acquired Michael Ward’s ninety (90%) percent interest in two Mexican companies. The remaining ten (10%) percent interest was acquired by Mirage Energy Corporation from Patrick Dosser. Patrick Dosser is Michael Ward’s son.

Together, Mirage Energy and 4Ward Resources own 100% of the two Mexican corporations. The two Mexican corporations are WPF MEXICO PIPELINES, S. de R.L. de C.V., and CENOTE ENERGY S. de R.L. de C.V. Additionally, 4Ward Resources acquired all of Michael Ward’s interest in WPF TRANSMISSION, INC., a Texas corporation. These transactions were valued at their carry over basis of $140,286, representing $99,821 expended on behalf of these companies by 4Ward Resources, $1,500 expended by Mr. Michael Ward to be reimbursed by 4Ward Resources and $38,965 whose vendor payments will be assumed or paid by 4Ward Resources. These transactions were accounted for as a merger of entities under common control under ASC 805-50 whereby the financial information has been combined from the first day of the first period presented similar to a pooling of interest.

As of July 31, 2021, the CEO and two other members of management and one other employee had earned accrued unpaid salary in the amount of $1,726,023. Accrued salaries of $1,726,023 combined with accrued payroll taxes of $75,277 for a total accrued related party salaries and payroll tax of $1,801,300 for the period from June 2015 until July 31, 2021.

Also, Mr. Michael Ward, President, was owed $28,188 during the year for monies outlaid on behalf of the Company for a total loan amount of $28,188 which was netted for $28,188 in payments received leaving a net due Mr. Ward of $0 at July 31, 2021.

In March 2021, the CEO gifted four individuals 5,000,000 of his personal shares of the Company.  These shares have been accounted for as if they were returned to the Company by the CEO and reissued by the Company to the individuals at their fair value of $1,900,000.

As of July 31, 2020, the CEO and two other members of management and one other employee had earned accrued unpaid salary in the amount of $1,728,093. Accrued salaries of $1,728,093 combined with accrued payroll taxes of $66,978 for a total accrued related party salaries and payroll tax of $1,795,071 for the period from June 2015 until July 31, 2020.

Also, Mr. Michael Ward, President, provided $10,100 directly to the Company during the year with an additional $29,642 owed for monies outlaid on behalf of the Company for a total loan amount of $39,742 which was netted for $39,742 in payments received leaving a net due Mr. Ward of $0 at July 31, 2020.