OTC: GSTX

Silicon Wafer
Manufacturing

The solar supply
chain can be depicted as follows:

Quartz -> silicon
-> polysilicon -> silicon ingots -> silicon wafers -> solar cells -> solar modules (panels)

GSTX has established
a wholly owned subsidiary, The Quartz & Silicon Materials Company Ltd (“QSM”) to hold its businesses involved in the
solar manufacturing sector. QSM is the parent company for:

•
Ausquartz Group Holdings Pty Ltd
(AUSQUARTZ) – An Australian based company with world class expertise in high purity quartz. Ausquartz operates a test and pilot
production facility in Melbourne Australia. The company has successfully produced solar and semiconductor grade quartz sand.

•
The Quartz & Silicon Materials
Company Pty Ltd (QSM AUS) – An Australian based company developing silicon wafer manufacturing facilities in the Oceania Region.

•
Southland Silicon Materials Limited
(SSM) – A New Zealand based company, and wholly owned subsidiary of QSM AUS), developing a green silicon metal smelter and
a polysilicon production plant on the South Island of New Zealand. These two facilities will utilize local resources and green (renewable)
power.

QSM is in advanced
discussion with several large incumbent manufacturers to reshore manufacturing of silicon ingots, wafers and cells to the US and Australia.
QSM is structured to take advantage of the American “OBBB” and the Australian “Made in Australia” programs to
reshore critical solar manufacturing. Producing wafers locally (Made in America/Made in Australia)
is key to being able to claim government incentives (production credits). QSM is a low technology risk enterprise, no new inventions,
just manufacturing.

5

Government Product
Approvals.

There are
no identified government approvals required for our products and no export restrictions for the products.

Effect
of Existing or Probable Governmental Regulations on the Business.

Management
believes that there are no identified existing or probable government regulations that will adversely impact our business.

Management
believes that the proposed introduction/increase of import duties/tariffs on solar equipment and products from China and South East Asia
will benefit the proposed company operations in the U.S.

Research
and Development Activities.

The primary
research and development during the next fiscal year will involve further development and evaluation of new efficient material processing
techniques. The company plans to manufacture samples of its products for customer validation and presales activity purposes.

Compliance
with Environmental Laws.

Based upon
our long-term experience, management believes that the nature of our proposed processing operations does not involve any onerous environmental
compliance requirements. Compliance costs have been identified and quantified in the company plan of operations, business plan including
financial plan.

Employees.

Certain members
of our management team have been involved in this industry since 2005 and this has resulted in an experienced team of learned employees,
advisors and technical experts in various locations and capacities within both Australia, Central Europe, and in the United States. It
is planned to increase fulltime and part time employees/contractors from the present levels to a minimum of 30 within the next 12 months,
subject to the company securing additional funding.

At the present
time we rely upon experienced consultants with whom management has long-term relationships.

Executive
Management and Technical Team.

Our executive management and technical
team have largely co-worked together since 2005, and especially the last 5 years in Melbourne, Australia, China and the USA. All the
specialized human resources are available to us.

ITEM 1.A. RISK FACTORS.

Not applicable.

ITEM 1.B. UNRESOLVED
STAFF COMMENTS.

Not Applicable