--08-31 irog Ironwood Gold Corp. 2012-11-30 0001393909 No Smaller Reporting Company No 10-Q false 8949960 Yes 2013 Q1 0001393909 2013-01-22 0001393909 2012-09-01 2012-11-30 0001393909 2012-11-30 0001393909 2012-08-31 0001393909 2011-09-01 2011-11-30 0001393909 2007-01-18 2012-11-30 0001393909 2011-08-31 0001393909 2007-01-17 0001393909 2011-11-30 shares iso4217:USD iso4217:USD shares pure utr:Y utr:D irog:unit iso4217:USD irog:unit utr:M

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Basis of presentation The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America applicable to exploration stage enterprises (“GAAP).

Cash and cash equivalents Cash and cash equivalents include highly liquid investments with original maturities of three months or less.

Financial instruments The Company’s financial instruments consist of cash and cash equivalents, accounts payable and accrued expenses and amounts due to related parties. Unless otherwise noted, it is management’s opinion that the Company is not exposed to significant interest or credit risks rising from these financial instruments. The fair values of these financial instruments approximate their carrying values, unless otherwise noted.

Mineral property costs The Company has been in the exploration and development stage since its formation on 18 January 2007 and has not yet realized any revenues from its planned operations. It is primarily engaged in the acquisition and exploration of mining properties. Mineral property acquisition costs are initially capitalized as tangible assets when purchased. If proven and probable reserves are established for a property and it has been determined that a mineral property can be economically developed, costs will be amortized using the units-of-production method over the estimated life of the probable reserve. Mineral property exploration costs are expensed as incurred. Estimated future removal and site restoration costs, when determinable are provided over the life of proven reserves on a units-of-production basis. Costs, which include production equipment removal and environmental remediation, are estimated each period by management based on current regulations, actual expenses incurred, and technology and industry standards. Any charge is included in exploration expense or the provision for depletion and depreciation during the period and the actual restoration expenditures are charged to the accumulated provision amounts as incurred. As of the date of these financial statements, the Company has not established any proven or probable reserves on its mineral properties and incurred only acquisition and exploration costs (Note 3). Although the Company has taken steps to verify title to mineral properties in which it has an interest, according to the usual industry standards for the stage of exploration of such properties, these procedures do not guarantee the Company’s title. Such properties may be subject to prior agreements or transfers and title may be affected by undetected defects.

Reclamation costs The Company’s policy for recording reclamation costs is to record a liability for the estimated costs to reclaim mined land by recording charges to production costs for each tonne of ore mined over the life of the mine. The amount charged is based on management’s estimation of reclamation costs to be incurred. The accrued liability is reduced as reclamation expenditures are made. Certain reclamation work is performed concurrently with mining and these expenditures are charged to operations at that time. To date the Company has not incurred any reclamation costs.

Long-lived assets The carrying values of long-lived assets, including the carrying values of mineral property costs, are reviewed on a regular basis for the existence of facts or circumstance that may suggest impairment. The Company recognizes an impairment when the sum of the expected undiscounted future cash flows is less than the carrying amount of the asset. Impairment losses, if any, are measured as the excess of the carrying amount of the asset over its estimated fair value.

Income taxes Deferred income taxes are reported for timing differences between items of income or expense reported in the financial statements and those reported for income tax purposes. Deferred income taxes and tax benefits are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and for tax loss and credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Company provides for deferred taxes for the estimated future tax effects attributable to temporary differences and carry-forwards when realization is more likely than not.

Basic and diluted net loss per share The Company presents both basic and diluted earnings per share (“EPS”) on the face of the income statement. Basic EPS is computed by dividing net loss available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all potentially dilutive common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all potentially dilutive shares if their effect is anti-dilutive.

Foreign currency translation The Company’s functional and reporting currency is in U.S. dollars. Monetary assets and liabilities denominated in foreign currencies are translated using the exchange rate prevailing at the balance sheet date. Gains and losses arising on translation or settlement of foreign currency denominated transactions or balances are included in the determination of income. The Company has not, to the date of these financial statements, entered into derivative instruments to offset the impact of foreign currency fluctuations.

Reclassification Certain prior period amounts have been reclassified to conform with current period presentation.

Use of estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from these estimates.

Recent Accounting Pronouncements The Company does not expect the adoption of any recent accounting pronouncements to have a material impact on its financial statements.

30000 15000 30 100400 <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr> <td valign="top" width="5%"> 4. </td> <td> Convertible Promissory Note </td> </tr> </table> On August 16, 2011, the Company borrowed $550,000 in the form of a convertible note payable, with a maturity date of November 16, 2012, and an annual interest rate of 10% (default interest rate of 16%). The note is convertible at the holder’s option at $0,40 per share. The note is secured by all of the assets of the Company. In conjunction with this note payable, the Company issued 1,375,000 warrants to purchase common shares of the Company’s common stock, and issued 220,000 shares of common stock. Accordingly, the Company recorded amounts based on their relative fair values (debt - $351,409 ; warrants -$173,670 ; and common stock - $24,921). The fair value of the warrants was determined using the Black-Scholes model and included the following assumptions: risk free rate of 0.95% and annual volatility of 241%. The warrants have an exercise price of $0.60 and have a contractual life of 5 years from the date of issuance. The value of the discounts created by the warrants and beneficial conversion feature was $173,670 and $209,729, respectively. The discount related to the beneficial conversion feature will be amortized to interest expense over the life of the debt and the discount for the warrants will be amortized to interest expense over the contractual life of the warrants. As of August 31, 2011, the Company had amortized $6,868 of these discounts. On April 20, 2012, the Company restructured this debt by receiving $100,000 in cash, issuing 4,625,000 additional warrants with an exercise price of $.08, and reducing the conversion price on the debt to $.08. The Company accounted for this debt restructure as an extinguishment of debt, replaced by new debt, due to a substantial modification of terms. As a result, the Company recorded a gain on debt restructure of $10,761. Additionally, the Company recorded new discounts for the beneficial conversion feature and additional warrants of $338,050 and $311,950. These discounts will be amortized to interest expense over the life of the debt (for the beneficial conversion feature) and over the contractual life of the warrants (for the warrants). As of 31 August 2012, the Company had amortized $240,274 of these discounts and accrued interest expense on this note totaled $61,054. As of November 16, 2012, the Company was in default on this loan agreement due to lack of payment and had accrued interest expense on this note totaling $74,766. Since default, the Company has accrued additional interest of $3,989 through 30 November 2012 and the full amount of the debt discount related to the beneficial conversion feature of $338,050 has been amortized to interest expense. On 10 September 2012, the Company borrowed $56,000 in the form of a convertible note payable, with a maturity date of 12 June 2013, and an annual interest rate of 8% (default interest rate of 22%). The note is convertible at the holder’s option, during the period beginning 180 days following the date of the note and ending on the later of (i) the maturity date and (ii) the date of payment of the default amount, at a variable conversion price equal to the average of the lowest two trading prices for the common stock during the 20 trading day period ending on the latest complete trading day prior to the conversion date and discounted by 45%. The note is secured by all of the assets of the Company. On 19 November 2012, the Company borrowed $29,000 in the form of a convertible note payable, with a maturity date of 21 August 2013, and an annual interest rate of 8% (default interest rate of 22%). The note is convertible at the holder’s option, during the period beginning 180 days following the date of the note and ending on the later of (i) the maturity date and (ii) the date of payment of the default amount, at a variable conversion price equal to the average of the lowest two trading prices for the common stock during the 20 trading day period ending on the latest complete trading day prior to the conversion date and discounted by 45%. The note is secured by all of the assets of the Company. As a result of these two new convertible notes, the Company recorded new discounts for the beneficial conversion feature of $85,000. These discounts will be amortized to interest expense over the life of the debt. As of 30 November 2012, the Company had amortized $17,655 of these discounts and accrued interest expense on these notes totaled $1,083. 550000 0.10 0.16 40 1375000 220000 351409 173670 24921 0.0095 2.41 0.60 5 173670 209729 6868 100000 4625000 0.08 0.08 10761 338050 311950 31 240274 61054 74766 3989 338050 56000 0.08 0.22 180 20 0.45 29000 0.08 0.22 180 20 0.45 85000 17655 1083

550000 0.40 1375000 0.60 5 209729 271817 104410 136225 766995 599816 660260 16110 140096 39127 56000 29000 292248 114818

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr> <td valign="top" width="5%"> 6. </td> <td> Capital Stock </td> </tr> </table> Authorized The total authorized capital is 25,000,000 common shares with a par value of $0.001 per common share. Issued and outstanding On 3 September 2010, the Company completed a private placement and issued 50,000 Units for gross proceeds of $50,000, of a private placement of 1,000,000 Units offered at $1.00 per unit (post share split) of the Company’s securities. Each Unit consists of 1 share of common stock, par value $0.001 per share and 1 warrant exercisable to purchase 1 share of common stock of the Company at an exercise price of $1.40 per share for a period of 24 months. The 50,000 warrants were valued using the Black-Scholes model. Based on this valuation, a fair value of $24,124 was assigned to the warrants, using a relative fair value approach, considering the shares of common stock with which they were issued. On 28 September 2010, the Company completed a private placement and issued 15,000 Units for gross proceeds of $15,000, of a private placement of 1,000,000 Units offered at $1.00 per unit (post share split) of the Company’s securities. Each Unit consists of 1 share of common stock, par value $0.001 per share and 1 warrant exercisable to purchase 1 share of common stock of the Company at an exercise price of $1.40 per share for a period of 24 months. The 15,000 warrants were valued using the Black-Scholes model. Based on this valuation, a fair value of $7,251 was assigned to the warrants, using a relative fair value approach, considering the shares of common stock with which they were issued. On 30 September 2010, the Company issued 5,000 common shares to a member of its Advisory board for services of the Company valued at $1.00 per common share (post share split) for a total consideration of $5,000. On 8 October 2010, the Company completed a private placement and issued 50,000 Units for gross proceeds of $50,000, of a private placement of 1,000,000 Units offered at $1.00 per unit (post share split) of the Company’s securities. Each Unit consists of 1 share of common stock, par value $0.001 per share and 1 warrant exercisable to purchase 1 share of common stock of the Company at an exercise price of $1.40 per share for a period of 24 months. The 50,000 warrants were valued using the Black-Scholes model. Based on this valuation, a fair value of $24,133 was assigned to the warrants, using a relative fair value approach, considering the shares of common stock with which they were issued. On 13 October 2010, the Company completed a private placement and issued 100,000 Units for gross proceeds of $100,000, of a private placement of 1,000,000 Units offered at $1.00 per unit (post share split) of the Company’s securities. Each Unit consists of 1 share of common stock, par value $0.001 per share and 1 warrant exercisable to purchase 1 share of common stock of the Company at an exercise price of $1.40 per share for a period of 24 months. The 100,000 warrants were valued using the Black-Scholes model. Based on this valuation, a fair value of $48,231 was assigned to the warrants, using a relative fair value approach, considering the shares of common stock with which they were issued. On 19 October 2010, the Company completed a private placement and issued 100,000 Units for gross proceeds of $100,000, of a private placement of 1,000,000 Units offered at $1.00 per unit (post share split) of the Company’s securities. Each Unit consists of 1 share of common stock, par value $0.001 per share and 1 warrant exercisable to purchase 1 share of common stock of the Company at an exercise price of $1.40 per share for a period of 24 months. The 100,000 warrants were valued using the Black-Scholes model. Based on this valuation, a fair value of $48,421 was assigned to the warrants, using a relative fair value approach, considering the shares of common stock with which they were issued. On 16 March 2011, the Company issued 75,000 common shares to Robert Wyllie in accordance with an acquisition agreement dated 2 February 2011, for an interest in the prospective gold-silver project known as the Falcon Mine Property. The property consists of 6 patented claims and 60-100 newly staked claims that join the patented claims on which the mine is situated. On 15 June 2011, the Company completed a private placement and issued 125,000 Units for gross proceeds of $125,000, of a private placement of 1,000,000 Units offered at $1.00 per unit of the Company’s securities. Each Unit consists of 1 share of common stock, par value $0.001 per share (post share split) and 1 warrant exercisable to purchase 1 share of common stock of the Company at an exercise price of $1.40 per share for a period of 24 months. On July 18, 2011, the Company issued 20,000 shares under Restricted Stock Award Agreement (the “Agreement”) dated January 24, 2011, with Anton S. Borozdin, whereby Mr. Borozdin will serve as a director of the Company. Pursuant to the Agreement, Mr. Borozdin received five thousand (5,000) shares of Company common stock in connection with his service as a director. The transaction was valued at $4,000 being the trading price of the Company’s shares on January 24, 2010, $0.80 per share (post share split) multiplied by the number of shares issued 5,000. On July 31, 2011, the Company issued 1,250,000 shares to Behzad Shayanfar, the Company's current Chief Executive Officer, Interim Chief Financial Officer and a member of the Company's Board of Directors, as consideration for services provided to the Company. The transaction was valued at $250,000 being the trading price of the Company’s shares on July 31, 2011, $0.20 per share (post share split) multiplied by the number of shares issued 1,250,000. On August 5, 2011 the Company issued 10,000 shares in exchange for amounts owed by the Company to a supplier for services provided in November 2011. The transaction was valued at $9,257 being the amount owed. On August 16, 2011 the Company issued 200,000 shares to a consultant for services. The transaction was valued at $40,000 being the trading price of the Company’s shares on August 16, 2011, $0.20 per share (post share split) multiplied by the number of shares issued 200,000. On August 16, 2011 the Company issued 220,000 shares under a secured promissory note agreement (Note 8). The transaction was valued at $24,921 being the fair value allocation of the Company’s shares on August 16, 2011, based on cash proceeds on the related convertible note signed in connection with the share issuance. On August 24, 2011 the Company issued 150,000 shares to a consultant for services. The transaction was valued at $30,000 being the trading price of the Company’s shares on August 16, 2011, $0.20 per share (post share split) multiplied by the number of shares issued 150,000. On August 31, 2011, Ironwood Gold Corp., a Nevada corporation (the "Company"), entered into a Restricted Stock Award Agreement (the "Agreement") with Keith P. Brill, in connection with his service as a director of the Company. Pursuant to the Agreement, Mr. Brill will receive five thousand (5,000) shares of Company common stock. The transaction was valued at $1,000 being the trading price of the Company’s shares on August 31, 2011, $0.20 per share (post share split) multiplied by the number of shares issued 5,000. Effective 28 October, 2011, the Company completed a 20 to 1 reverse stock split. The authorized share capital changed to 25,000,000 common shares with the same par value of $0.001 (post share split). Unless otherwise noted, all references herein to number of shares, price per share or weighted average number of shares outstanding have been adjusted to reflect this stock split and the 50 to 1 forward stock split effective 27 October 2009, described above (“post splits”) on a retroactive basis (Note 8). On February 22, 2012, the Company issued 500,000 common shares under an Amendment to the Falcon agreement (Note 3). The transaction was valued at $60,000 being the trading price of the Company’s shares on February 22, 2012, $0.12 per share, multiplied by the number of shares issued 500,000. On September 14, 2012, Ironwood Gold Corp., a Nevada corporation (the "Company"), entered into a Restricted Stock Award Agreement (the "Agreement") with a Company officer and a Company director. Pursuant to the Agreement, the officer will receive two million (2,000,000) shares of Company common stock and the director will receive two hundred and fifty thousand (250,000) shares of Company common stock. The transaction was valued at $135,000 being the trading price of the Company’s shares on September 14, 2012, $0.06 per share (post share split), multiplied by the number of shares to be issued, 2,250,000 shares. Subscriptions received On November 24, 2010, the Company received $60,000 as partial payment on the private placement of 60,000 Units for gross proceeds of $60,000, of a private placement of 1,000,000 Units offered at $1.00 per unit (post share split) of the Company’s securities. Each Unit consists of 1 share of common stock, par value $0.001 per share and 1 warrant exercisable to purchase 1 share of common stock of the Company at an exercise price of $1.40 per share for a period of 24 months. Stock Options The Company has a stock option plan whereby the Board of Directors is authorized to grant options to a rolling ceiling of 10% of the issued and outstanding common shares of the Company. Options to purchase common shares have been granted to directors at exercise prices determined by reference to the market value on the date of the grant. The terms of the option and the option price are fixed by the directors at the time of grant subject to price restrictions imposed by the TSX Venture Exchange. Stock options awarded have a maximum term of ten years. On 20 April 2010, the Company granted an aggregate of 312,500 incentive options to various directors and officers of the Company. The options vest evenly, at the end of each calendar quarter, over five years beginning on June 30, 2010. The weighted average exercise price of the options is $0.31 each and they are exercisable until April 20, 2020. 625,000 options were vested at 30 November 2010. The weighted average grant-date fair value for these options was $1,800,400. During the year ended 31 August 2011, 212,500 options were forfeited. On 31 August 2012, 100,000 options were outstanding of which 45,000 were vested. Due to the fact that the options were out of the money, the aggregate intrinsic value of options outstanding and exercisable at 30 November 2012 was $Nil. Stock-based compensation expense Options granted to directors and officers of the Company are accounted for using the Black-Scholes option pricing model. The exercise price of the options is $0.31 each and they are exercisable until April 20, 2015. The fair value of stock options vested at 31 August 2011, was $172,800 ($5.76 each), as estimated at the date of grant using the Black-Scholes option pricing model. The Company uses historical data to estimate option exercises and employee termination in the option pricing model. The expected term of options granted is derived from the output of the option pricing model and represents the period of time that options granted are expected to be outstanding. The expected volatilities are based on the historical volatility of the Company's traded stock and other factors. The following table shows the assumptions used and weighted average fair value for grants in the year ended 31 August 2010 (no options issued in fiscal years 2011 and 2012 and three months ended 30 November 2012). <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td width="5%"> </td> <td align="left" bgcolor="#e6efff">Expected annual dividend rate</td> <td align="left" bgcolor="#e6efff" width="15%"> 0.00% </td> </tr> <tr valign="top"> <td width="5%"> </td> <td align="left">Weighted average exercise price</td> <td align="left" width="15%"> $6.20 </td> </tr> <tr valign="top"> <td width="5%"> </td> <td align="left" bgcolor="#e6efff">Risk-free interest rate</td> <td align="left" bgcolor="#e6efff" width="15%"> 3.25% </td> </tr> <tr valign="top"> <td width="5%"> </td> <td align="left">Average expected life (years)</td> <td align="left" width="15%"> 10 </td> </tr> <tr valign="top"> <td width="5%"> </td> <td align="left" bgcolor="#e6efff">Expected volatility of common stock</td> <td align="left" bgcolor="#e6efff" width="15%"> 98.43% </td> </tr> <tr valign="top"> <td width="5%"> </td> <td align="left">Forfeiture rate</td> <td align="left" width="15%"> 0.00% </td> </tr> <tr valign="top"> <td width="5%"> </td> <td align="left" bgcolor="#e6efff">Weighted average fair value of option grants</td> <td align="left" bgcolor="#e6efff" width="15%"> $5.76 </td> </tr> </table> The Company recorded share-based compensation expense only for those options that are expected to vest. The estimated fair value of the stock options is amortized over the vesting period of the respective stock option grants. Total stock based compensation for the three months ended November 30, 2012 and 2011 was $28,806 for each period. Warrants As at 30 November 2012 and 31 August 2012, the following share purchase warrants were outstanding and exercisable: <div align="center"> <div> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="80%"> <tr valign="top"> <td align="left" style="border-left: 1px solid rgb(0, 0, 0); border-top: 1px solid rgb(0, 0, 0);"> </td> <td align="center" style="border-top: 1px solid rgb(0, 0, 0);" width="25%"> Exercise </td> <td align="left" style="border-top: 1px solid rgb(0, 0, 0);" width="25%"> </td> <td align="left" style="border-top: 1px solid rgb(0, 0, 0); border-right: 1px solid rgb(0, 0, 0);" width="25%"> </td> </tr> <tr valign="top"> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);"> Expiry Date </td> <td align="center" style="border-bottom: 1px solid rgb(0, 0, 0);" width="25%"> Price </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="25%"> 30-Nov-12 </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0); border-right: 1px solid rgb(0, 0, 0);" width="25%"> 31-Aug-12 </td> </tr> <tr valign="top"> <td align="right" bgcolor="#e6efff" style="border-left: 1px solid rgb(0, 0, 0);">27-Aug-12</td> <td align="center" bgcolor="#e6efff" width="25%"> $1.40 </td> <td align="right" bgcolor="#e6efff" width="25%"> - </td> <td align="right" bgcolor="#e6efff" style="border-right: 1px solid rgb(0, 0, 0);" width="25%"> - </td> </tr> <tr valign="top"> <td align="right" style="border-left: 1px solid rgb(0, 0, 0);">3-Sep-12</td> <td align="center" width="25%"> $1.40 </td> <td align="right" width="25%"> - </td> <td align="right" style="border-right: 1px solid rgb(0, 0, 0);" width="25%"> 50,000 </td> </tr> <tr valign="top"> <td align="right" bgcolor="#e6efff" style="border-left: 1px solid rgb(0, 0, 0);">28-Sep-12</td> <td align="center" bgcolor="#e6efff" width="25%"> $1.40 </td> <td align="right" bgcolor="#e6efff" width="25%"> - </td> <td align="right" bgcolor="#e6efff" style="border-right: 1px solid rgb(0, 0, 0);" width="25%"> 15,000 </td> </tr> <tr valign="top"> <td align="right" style="border-left: 1px solid rgb(0, 0, 0);">8-Oct-12</td> <td align="center" width="25%"> $1.40 </td> <td align="right" width="25%"> - </td> <td align="right" style="border-right: 1px solid rgb(0, 0, 0);" width="25%"> 50,000 </td> </tr> <tr valign="top"> <td align="right" bgcolor="#e6efff" style="border-left: 1px solid rgb(0, 0, 0);">13-Oct-12</td> <td align="center" bgcolor="#e6efff" width="25%"> $1.40 </td> <td align="right" bgcolor="#e6efff" width="25%"> - </td> <td align="right" bgcolor="#e6efff" style="border-right: 1px solid rgb(0, 0, 0);" width="25%"> 100,000 </td> </tr> <tr valign="top"> <td align="right" style="border-left: 1px solid rgb(0, 0, 0);">24-Nov-12</td> <td align="center" width="25%"> $1.40 </td> <td align="right" width="25%"> - </td> <td align="right" style="border-right: 1px solid rgb(0, 0, 0);" width="25%"> 100,000 </td> </tr> <tr valign="top"> <td align="right" bgcolor="#e6efff" style="border-left: 1px solid rgb(0, 0, 0);">11-Jun-13</td> <td align="center" bgcolor="#e6efff" width="25%"> $1.40 </td> <td align="right" bgcolor="#e6efff" width="25%"> 125,000 </td> <td align="right" bgcolor="#e6efff" style="border-right: 1px solid rgb(0, 0, 0);" width="25%"> 125,000 </td> </tr> <tr valign="top"> <td align="right" style="border-left: 1px solid rgb(0, 0, 0);">16-Aug-16</td> <td align="center" width="25%"> $0.60 </td> <td align="right" width="25%"> - </td> <td align="right" style="border-right: 1px solid rgb(0, 0, 0);" width="25%"> - </td> </tr> <tr valign="top"> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">16-Aug-16</td> <td align="center" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="25%"> $0.08 </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="25%"> 6,000,000 </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0); border-right: 1px solid rgb(0, 0, 0);" width="25%"> 6,000,000 </td> </tr> <tr valign="top"> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);"> </td> <td align="center" style="border-bottom: 1px solid rgb(0, 0, 0);" width="25%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="25%"> 6,125,000 </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0); border-right: 1px solid rgb(0, 0, 0);" width="25%"> 6,440,000 </td> </tr> </table> </div> </div> Share purchase warrant transactions and the number of share purchase warrants outstanding and exercisable are summarized as follows: <div align="center"> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="80%"> <tr valign="top"> <td align="left" style="border-left: 1px solid rgb(0, 0, 0); border-top: 1px solid rgb(0, 0, 0);"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0); border-top: 1px solid rgb(0, 0, 0);"> </td> <td align="center" colspan="4" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0); border-top: 1px solid rgb(0, 0, 0);"> 30-Nov-12 </td> <td align="center" nowrap="nowrap" style="border-top: 1px solid rgb(0, 0, 0);"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0); border-top: 1px solid rgb(0, 0, 0);"> </td> <td align="center" colspan="4" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0); border-top: 1px solid rgb(0, 0, 0);"> 31-Aug-12 </td> <td align="left" style="border-top: 1px solid rgb(0, 0, 0); border-right: 1px solid rgb(0, 0, 0);"> </td> </tr> <tr valign="top"> <td align="left" style="border-left: 1px solid rgb(0, 0, 0);"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap"> Weighted </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap"> Weighted </td> <td align="left" style="border-right: 1px solid rgb(0, 0, 0);" width="1%"> </td> </tr> <tr valign="top"> <td align="left" style="border-left: 1px solid rgb(0, 0, 0);"> </td> <td align="left"> </td> <td align="center" nowrap="nowrap" width="12%"> </td> <td align="center" nowrap="nowrap"> </td> <td align="center" nowrap="nowrap"> </td> <td align="center" nowrap="nowrap" width="12%"> Average </td> <td align="center" nowrap="nowrap"> </td> <td align="center" nowrap="nowrap"> </td> <td align="center" nowrap="nowrap" width="12%"> </td> <td align="center" nowrap="nowrap"> </td> <td align="center" nowrap="nowrap"> </td> <td align="center" nowrap="nowrap" width="12%"> Average </td> <td align="left" style="border-right: 1px solid rgb(0, 0, 0);"> </td> </tr> <tr valign="top"> <td align="left" style="border-left: 1px solid rgb(0, 0, 0);"> </td> <td align="left"> </td> <td align="center" nowrap="nowrap"> Number of </td> <td align="center" nowrap="nowrap"> </td> <td align="center" nowrap="nowrap"> </td> <td align="center" nowrap="nowrap"> Exercise </td> <td align="center" nowrap="nowrap"> </td> <td align="center" nowrap="nowrap"> </td> <td align="center" nowrap="nowrap"> Number of </td> <td align="center" nowrap="nowrap"> </td> <td align="center" nowrap="nowrap"> </td> <td align="center" nowrap="nowrap"> Exercise </td> <td align="left" style="border-right: 1px solid rgb(0, 0, 0);"> </td> </tr> <tr valign="top"> <td align="left" style="border-left: 1px solid rgb(0, 0, 0);"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);"> Warrants </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);"> Price </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);"> Warrants </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);"> Price </td> <td align="left" style="border-right: 1px solid rgb(0, 0, 0);"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="border-left: 1px solid rgb(0, 0, 0);">Outstanding at beginning of period</td> <td align="left" bgcolor="#e6efff"> </td> <td align="right" bgcolor="#e6efff"> 6,440,000 </td> <td align="left" bgcolor="#e6efff"> </td> <td align="left" bgcolor="#e6efff">$</td> <td align="right" bgcolor="#e6efff"> 0.17 </td> <td align="left" bgcolor="#e6efff"> </td> <td align="left" bgcolor="#e6efff"> </td> <td align="right" bgcolor="#e6efff"> 2,015,000 </td> <td align="left" bgcolor="#e6efff"> </td> <td align="left" bgcolor="#e6efff">$</td> <td align="right" bgcolor="#e6efff"> 0.85 </td> <td align="left" bgcolor="#e6efff" style="border-right: 1px solid rgb(0, 0, 0);"> </td> </tr> <tr valign="top"> <td align="left" style="border-left: 1px solid rgb(0, 0, 0);">Issued</td> <td align="left"> </td> <td align="right"> - </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> - </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> 6,000,000 </td> <td align="left"> </td> <td align="left">$</td> <td align="right"> 0.08 </td> <td align="left" style="border-right: 1px solid rgb(0, 0, 0);"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="border-left: 1px solid rgb(0, 0, 0);">Exercised</td> <td align="left" bgcolor="#e6efff"> </td> <td align="right" bgcolor="#e6efff"> - </td> <td align="left" bgcolor="#e6efff"> </td> <td align="left" bgcolor="#e6efff"> </td> <td align="right" bgcolor="#e6efff"> - </td> <td align="left" bgcolor="#e6efff"> </td> <td align="left" bgcolor="#e6efff"> </td> <td align="right" bgcolor="#e6efff"> - </td> <td align="left" bgcolor="#e6efff"> </td> <td align="left" bgcolor="#e6efff"> </td> <td align="right" bgcolor="#e6efff"> - </td> <td align="left" bgcolor="#e6efff" style="border-right: 1px solid rgb(0, 0, 0);"> </td> </tr> <tr valign="top"> <td align="left" style="border-left: 1px solid rgb(0, 0, 0);">Extinguished</td> <td align="left"> </td> <td align="right"> - </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> - </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> (1,375,000 </td> <td align="left">)</td> <td align="left">$</td> <td align="right"> 0.60 </td> <td align="left" style="border-right: 1px solid rgb(0, 0, 0);"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="border-left: 1px solid rgb(0, 0, 0);">Expired</td> <td align="left" bgcolor="#e6efff"> </td> <td align="right" bgcolor="#e6efff"> (315,000 </td> <td align="left" bgcolor="#e6efff">)</td> <td align="left" bgcolor="#e6efff">$</td> <td align="right" bgcolor="#e6efff"> 1.40 </td> <td align="left" bgcolor="#e6efff"> </td> <td align="left" bgcolor="#e6efff"> </td> <td align="right" bgcolor="#e6efff"> (200,000 </td> <td align="left" bgcolor="#e6efff">)</td> <td align="left" bgcolor="#e6efff">$</td> <td align="right" bgcolor="#e6efff"> 1.40 </td> <td align="left" bgcolor="#e6efff" style="border-right: 1px solid rgb(0, 0, 0);"> </td> </tr> <tr valign="top"> <td align="left" style="border-left: 1px solid rgb(0, 0, 0);">Outstanding at end of period</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);"> - </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);"> - </td> <td align="left"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);"> - </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);"> - </td> <td align="left" style="border-right: 1px solid rgb(0, 0, 0);"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);"> 6,125,000 </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);">$</td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);"> 0.11 </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);"> 6,440,000 </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);">$</td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);"> 0.17 </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0); border-right: 1px solid rgb(0, 0, 0);"> </td> </tr> </table> </div>

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td width="5%"> </td> <td align="left" bgcolor="#e6efff">Expected annual dividend rate</td> <td align="left" bgcolor="#e6efff" width="15%"> 0.00% </td> </tr> <tr valign="top"> <td width="5%"> </td> <td align="left">Weighted average exercise price</td> <td align="left" width="15%"> $6.20 </td> </tr> <tr valign="top"> <td width="5%"> </td> <td align="left" bgcolor="#e6efff">Risk-free interest rate</td> <td align="left" bgcolor="#e6efff" width="15%"> 3.25% </td> </tr> <tr valign="top"> <td width="5%"> </td> <td align="left">Average expected life (years)</td> <td align="left" width="15%"> 10 </td> </tr> <tr valign="top"> <td width="5%"> </td> <td align="left" bgcolor="#e6efff">Expected volatility of common stock</td> <td align="left" bgcolor="#e6efff" width="15%"> 98.43% </td> </tr> <tr valign="top"> <td width="5%"> </td> <td align="left">Forfeiture rate</td> <td align="left" width="15%"> 0.00% </td> </tr> <tr valign="top"> <td width="5%"> </td> <td align="left" bgcolor="#e6efff">Weighted average fair value of option grants</td> <td align="left" bgcolor="#e6efff" width="15%"> $5.76 </td> </tr> </table>

0.00 6.20 0.0325 10 0.9843 0.00 5.76

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="80%"> <tr valign="top"> <td align="left" style="border-left: 1px solid rgb(0, 0, 0); border-top: 1px solid rgb(0, 0, 0);"> </td> <td align="center" style="border-top: 1px solid rgb(0, 0, 0);" width="25%"> Exercise </td> <td align="left" style="border-top: 1px solid rgb(0, 0, 0);" width="25%"> </td> <td align="left" style="border-top: 1px solid rgb(0, 0, 0); border-right: 1px solid rgb(0, 0, 0);" width="25%"> </td> </tr> <tr valign="top"> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);"> Expiry Date </td> <td align="center" style="border-bottom: 1px solid rgb(0, 0, 0);" width="25%"> Price </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="25%"> 30-Nov-12 </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0); border-right: 1px solid rgb(0, 0, 0);" width="25%"> 31-Aug-12 </td> </tr> <tr valign="top"> <td align="right" bgcolor="#e6efff" style="border-left: 1px solid rgb(0, 0, 0);">27-Aug-12</td> <td align="center" bgcolor="#e6efff" width="25%"> $1.40 </td> <td align="right" bgcolor="#e6efff" width="25%"> - </td> <td align="right" bgcolor="#e6efff" style="border-right: 1px solid rgb(0, 0, 0);" width="25%"> - </td> </tr> <tr valign="top"> <td align="right" style="border-left: 1px solid rgb(0, 0, 0);">3-Sep-12</td> <td align="center" width="25%"> $1.40 </td> <td align="right" width="25%"> - </td> <td align="right" style="border-right: 1px solid rgb(0, 0, 0);" width="25%"> 50,000 </td> </tr> <tr valign="top"> <td align="right" bgcolor="#e6efff" style="border-left: 1px solid rgb(0, 0, 0);">28-Sep-12</td> <td align="center" bgcolor="#e6efff" width="25%"> $1.40 </td> <td align="right" bgcolor="#e6efff" width="25%"> - </td> <td align="right" bgcolor="#e6efff" style="border-right: 1px solid rgb(0, 0, 0);" width="25%"> 15,000 </td> </tr> <tr valign="top"> <td align="right" style="border-left: 1px solid rgb(0, 0, 0);">8-Oct-12</td> <td align="center" width="25%"> $1.40 </td> <td align="right" width="25%"> - </td> <td align="right" style="border-right: 1px solid rgb(0, 0, 0);" width="25%"> 50,000 </td> </tr> <tr valign="top"> <td align="right" bgcolor="#e6efff" style="border-left: 1px solid rgb(0, 0, 0);">13-Oct-12</td> <td align="center" bgcolor="#e6efff" width="25%"> $1.40 </td> <td align="right" bgcolor="#e6efff" width="25%"> - </td> <td align="right" bgcolor="#e6efff" style="border-right: 1px solid rgb(0, 0, 0);" width="25%"> 100,000 </td> </tr> <tr valign="top"> <td align="right" style="border-left: 1px solid rgb(0, 0, 0);">24-Nov-12</td> <td align="center" width="25%"> $1.40 </td> <td align="right" width="25%"> - </td> <td align="right" style="border-right: 1px solid rgb(0, 0, 0);" width="25%"> 100,000 </td> </tr> <tr valign="top"> <td align="right" bgcolor="#e6efff" style="border-left: 1px solid rgb(0, 0, 0);">11-Jun-13</td> <td align="center" bgcolor="#e6efff" width="25%"> $1.40 </td> <td align="right" bgcolor="#e6efff" width="25%"> 125,000 </td> <td align="right" bgcolor="#e6efff" style="border-right: 1px solid rgb(0, 0, 0);" width="25%"> 125,000 </td> </tr> <tr valign="top"> <td align="right" style="border-left: 1px solid rgb(0, 0, 0);">16-Aug-16</td> <td align="center" width="25%"> $0.60 </td> <td align="right" width="25%"> - </td> <td align="right" style="border-right: 1px solid rgb(0, 0, 0);" width="25%"> - </td> </tr> <tr valign="top"> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">16-Aug-16</td> <td align="center" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="25%"> $0.08 </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="25%"> 6,000,000 </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0); border-right: 1px solid rgb(0, 0, 0);" width="25%"> 6,000,000 </td> </tr> <tr valign="top"> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);"> </td> <td align="center" style="border-bottom: 1px solid rgb(0, 0, 0);" width="25%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="25%"> 6,125,000 </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0); border-right: 1px solid rgb(0, 0, 0);" width="25%"> 6,440,000 </td> </tr> </table>

1.40 0 0 1.40 0 50000 1.40 0 15000 1.40 0 50000 1.40 0 100000 1.40 0 100000 1.40 125000 125000 0.60 0 0 0.08 6000000 6000000 6125000 6440000 <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="80%"> <tr valign="top"> <td align="left" style="border-left: 1px solid rgb(0, 0, 0); border-top: 1px solid rgb(0, 0, 0);"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0); border-top: 1px solid rgb(0, 0, 0);"> </td> <td align="center" colspan="4" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0); border-top: 1px solid rgb(0, 0, 0);"> 30-Nov-12 </td> <td align="center" nowrap="nowrap" style="border-top: 1px solid rgb(0, 0, 0);"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0); border-top: 1px solid rgb(0, 0, 0);"> </td> <td align="center" colspan="4" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0); border-top: 1px solid rgb(0, 0, 0);"> 31-Aug-12 </td> <td align="left" style="border-top: 1px solid rgb(0, 0, 0); border-right: 1px solid rgb(0, 0, 0);"> </td> </tr> <tr valign="top"> <td align="left" style="border-left: 1px solid rgb(0, 0, 0);"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap"> Weighted </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap"> Weighted </td> <td align="left" style="border-right: 1px solid rgb(0, 0, 0);" width="1%"> </td> </tr> <tr valign="top"> <td align="left" style="border-left: 1px solid rgb(0, 0, 0);"> </td> <td align="left"> </td> <td align="center" nowrap="nowrap" width="12%"> </td> <td align="center" nowrap="nowrap"> </td> <td align="center" nowrap="nowrap"> </td> <td align="center" nowrap="nowrap" width="12%"> Average </td> <td align="center" nowrap="nowrap"> </td> <td align="center" nowrap="nowrap"> </td> <td align="center" nowrap="nowrap" width="12%"> </td> <td align="center" nowrap="nowrap"> </td> <td align="center" nowrap="nowrap"> </td> <td align="center" nowrap="nowrap" width="12%"> Average </td> <td align="left" style="border-right: 1px solid rgb(0, 0, 0);"> </td> </tr> <tr valign="top"> <td align="left" style="border-left: 1px solid rgb(0, 0, 0);"> </td> <td align="left"> </td> <td align="center" nowrap="nowrap"> Number of </td> <td align="center" nowrap="nowrap"> </td> <td align="center" nowrap="nowrap"> </td> <td align="center" nowrap="nowrap"> Exercise </td> <td align="center" nowrap="nowrap"> </td> <td align="center" nowrap="nowrap"> </td> <td align="center" nowrap="nowrap"> Number of </td> <td align="center" nowrap="nowrap"> </td> <td align="center" nowrap="nowrap"> </td> <td align="center" nowrap="nowrap"> Exercise </td> <td align="left" style="border-right: 1px solid rgb(0, 0, 0);"> </td> </tr> <tr valign="top"> <td align="left" style="border-left: 1px solid rgb(0, 0, 0);"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);"> Warrants </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);"> Price </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);"> Warrants </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);"> Price </td> <td align="left" style="border-right: 1px solid rgb(0, 0, 0);"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="border-left: 1px solid rgb(0, 0, 0);">Outstanding at beginning of period</td> <td align="left" bgcolor="#e6efff"> </td> <td align="right" bgcolor="#e6efff"> 6,440,000 </td> <td align="left" bgcolor="#e6efff"> </td> <td align="left" bgcolor="#e6efff">$</td> <td align="right" bgcolor="#e6efff"> 0.17 </td> <td align="left" bgcolor="#e6efff"> </td> <td align="left" bgcolor="#e6efff"> </td> <td align="right" bgcolor="#e6efff"> 2,015,000 </td> <td align="left" bgcolor="#e6efff"> </td> <td align="left" bgcolor="#e6efff">$</td> <td align="right" bgcolor="#e6efff"> 0.85 </td> <td align="left" bgcolor="#e6efff" style="border-right: 1px solid rgb(0, 0, 0);"> </td> </tr> <tr valign="top"> <td align="left" style="border-left: 1px solid rgb(0, 0, 0);">Issued</td> <td align="left"> </td> <td align="right"> - </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> - </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> 6,000,000 </td> <td align="left"> </td> <td align="left">$</td> <td align="right"> 0.08 </td> <td align="left" style="border-right: 1px solid rgb(0, 0, 0);"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="border-left: 1px solid rgb(0, 0, 0);">Exercised</td> <td align="left" bgcolor="#e6efff"> </td> <td align="right" bgcolor="#e6efff"> - </td> <td align="left" bgcolor="#e6efff"> </td> <td align="left" bgcolor="#e6efff"> </td> <td align="right" bgcolor="#e6efff"> - </td> <td align="left" bgcolor="#e6efff"> </td> <td align="left" bgcolor="#e6efff"> </td> <td align="right" bgcolor="#e6efff"> - </td> <td align="left" bgcolor="#e6efff"> </td> <td align="left" bgcolor="#e6efff"> </td> <td align="right" bgcolor="#e6efff"> - </td> <td align="left" bgcolor="#e6efff" style="border-right: 1px solid rgb(0, 0, 0);"> </td> </tr> <tr valign="top"> <td align="left" style="border-left: 1px solid rgb(0, 0, 0);">Extinguished</td> <td align="left"> </td> <td align="right"> - </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> - </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> (1,375,000 </td> <td align="left">)</td> <td align="left">$</td> <td align="right"> 0.60 </td> <td align="left" style="border-right: 1px solid rgb(0, 0, 0);"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="border-left: 1px solid rgb(0, 0, 0);">Expired</td> <td align="left" bgcolor="#e6efff"> </td> <td align="right" bgcolor="#e6efff"> (315,000 </td> <td align="left" bgcolor="#e6efff">)</td> <td align="left" bgcolor="#e6efff">$</td> <td align="right" bgcolor="#e6efff"> 1.40 </td> <td align="left" bgcolor="#e6efff"> </td> <td align="left" bgcolor="#e6efff"> </td> <td align="right" bgcolor="#e6efff"> (200,000 </td> <td align="left" bgcolor="#e6efff">)</td> <td align="left" bgcolor="#e6efff">$</td> <td align="right" bgcolor="#e6efff"> 1.40 </td> <td align="left" bgcolor="#e6efff" style="border-right: 1px solid rgb(0, 0, 0);"> </td> </tr> <tr valign="top"> <td align="left" style="border-left: 1px solid rgb(0, 0, 0);">Outstanding at end of period</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);"> - </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);"> - </td> <td align="left"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);"> - </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);"> - </td> <td align="left" style="border-right: 1px solid rgb(0, 0, 0);"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);"> 6,125,000 </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);">$</td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);"> 0.11 </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);"> 6,440,000 </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);">$</td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);"> 0.17 </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0); border-right: 1px solid rgb(0, 0, 0);"> </td> </tr> </table> 6440000 0.17 2015000 0.85 0 0 6000000 0.08 0 0 0 0 0 0 -1375000 0.60 -315000 1.40 -200000 1.40 0 0 0 0 6125000 0.11 6440000 0.17 25000000 0.001 50000 50000 1000000 1.00 1 0.001 1 1 1.40 24 50000 24124 15000 15000 1000000 1.00 1 0.001 1 1 1.40 24 15000 7251 5000 1.00 5000 50000 50000 1000000 1.00 1 0.001 1 1 1.40 24 50000 24133 100000 100000 1000000 1.00 1 0.001 1 1 1.40 24 100000 48231 100000 100000 1000000 1.00 1 0.001 1 1 1.40 24 100000 48421 75000 6 125000 125000 1000000 1.00 1 0.001 1 1 1.40 24 20000 -5000 4000 0.80 5000 1250000 250000 0.20 1250000 10000 9257 200000 40000 0.20 200000 220000 24921 150000 30000 0.20 150000 -5000 1000 0.20 5000 20 1 25000000 0.001 50 1 500000 60000 0.12 500000 -2000000 -250000 135000 0.06 2250000 60000 60000 60000 1000000 1.00 1 0.001 1 1 1.40 24 0.10 312500 0.31 625000 1800400 212500 100000 45000 0 0.31 172800 5.76 30 28806

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="80%"> <tr valign="top"> <td align="left" style="border-left: 1px solid rgb(0, 0, 0); border-top: 1px solid rgb(0, 0, 0);"> </td> <td align="left" style="border-top: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" nowrap="nowrap" style="border-top: 1px solid rgb(0, 0, 0);" width="10%"> For the period </td> <td align="left" nowrap="nowrap" style="border-top: 1px solid rgb(0, 0, 0);" width="2%"> </td> <td align="left" nowrap="nowrap" style="border-top: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="left" nowrap="nowrap" style="border-top: 1px solid rgb(0, 0, 0);" width="10%"> </td> <td align="left" nowrap="nowrap" style="border-top: 1px solid rgb(0, 0, 0);" width="2%"> </td> <td align="left" nowrap="nowrap" style="border-top: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="left" nowrap="nowrap" style="border-top: 1px solid rgb(0, 0, 0);" width="10%"> </td> <td align="left" style="border-top: 1px solid rgb(0, 0, 0); border-right: 1px solid rgb(0, 0, 0);" width="2%"> </td> </tr> <tr valign="top"> <td align="left" style="border-left: 1px solid rgb(0, 0, 0);"> </td> <td align="left" width="1%"> </td> <td align="right" nowrap="nowrap" width="10%"> from the date </td> <td align="left" nowrap="nowrap" width="2%"> </td> <td align="left" nowrap="nowrap" width="1%"> </td> <td align="left" nowrap="nowrap" width="10%"> </td> <td align="left" nowrap="nowrap" width="2%"> </td> <td align="left" nowrap="nowrap" width="1%"> </td> <td align="left" nowrap="nowrap" width="10%"> </td> <td align="left" style="border-right: 1px solid rgb(0, 0, 0);" width="2%"> </td> </tr> <tr valign="top"> <td align="left" style="border-left: 1px solid rgb(0, 0, 0);"> </td> <td align="left" width="1%"> </td> <td align="right" nowrap="nowrap" width="10%"> of inception on </td> <td align="left" nowrap="nowrap" width="2%"> </td> <td align="left" nowrap="nowrap" width="1%"> </td> <td align="left" nowrap="nowrap" width="10%"> </td> <td align="left" nowrap="nowrap" width="2%"> </td> <td align="left" nowrap="nowrap" width="1%"> </td> <td align="right" nowrap="nowrap" width="10%"> For the three </td> <td align="left" style="border-right: 1px solid rgb(0, 0, 0);" width="2%"> </td> </tr> <tr valign="top"> <td align="left" style="border-left: 1px solid rgb(0, 0, 0);"> </td> <td align="left" width="1%"> </td> <td align="right" nowrap="nowrap" width="10%"> 18 January </td> <td align="left" nowrap="nowrap" width="2%"> </td> <td align="left" nowrap="nowrap" width="1%"> </td> <td align="right" nowrap="nowrap" width="10%"> For the three </td> <td align="left" nowrap="nowrap" width="2%"> </td> <td align="left" nowrap="nowrap" width="1%"> </td> <td align="right" nowrap="nowrap" width="10%"> month period </td> <td align="left" style="border-right: 1px solid rgb(0, 0, 0);" width="2%"> </td> </tr> <tr valign="top"> <td align="left" style="border-left: 1px solid rgb(0, 0, 0);"> </td> <td align="left" width="1%"> </td> <td align="right" nowrap="nowrap" width="10%"> 2007 to 30 </td> <td align="left" nowrap="nowrap" width="2%"> </td> <td align="left" nowrap="nowrap" width="1%"> </td> <td align="right" nowrap="nowrap" width="10%"> month ended </td> <td align="left" nowrap="nowrap" width="2%"> </td> <td align="left" nowrap="nowrap" width="1%"> </td> <td align="right" nowrap="nowrap" width="10%"> ended 30 </td> <td align="left" style="border-right: 1px solid rgb(0, 0, 0);" width="2%"> </td> </tr> <tr valign="top"> <td align="left" style="border-left: 1px solid rgb(0, 0, 0);"> </td> <td align="left" width="1%"> </td> <td align="right" nowrap="nowrap" width="10%"> November </td> <td align="left" nowrap="nowrap" width="2%"> </td> <td align="left" nowrap="nowrap" width="1%"> </td> <td align="right" nowrap="nowrap" width="10%"> 30 November </td> <td align="left" nowrap="nowrap" width="2%"> </td> <td align="left" nowrap="nowrap" width="1%"> </td> <td align="right" nowrap="nowrap" width="10%"> November </td> <td align="left" style="border-right: 1px solid rgb(0, 0, 0);" width="2%"> </td> </tr> <tr valign="top"> <td align="left" style="border-left: 1px solid rgb(0, 0, 0);"> </td> <td align="left" width="1%"> </td> <td align="right" nowrap="nowrap" width="10%"> 2012 </td> <td align="left" nowrap="nowrap" width="2%"> </td> <td align="left" nowrap="nowrap" width="1%"> </td> <td align="right" nowrap="nowrap" width="10%"> 2012 </td> <td align="left" nowrap="nowrap" width="2%"> </td> <td align="left" nowrap="nowrap" width="1%"> </td> <td align="right" nowrap="nowrap" width="10%"> 2011 </td> <td align="left" style="border-right: 1px solid rgb(0, 0, 0);" width="2%"> </td> </tr> <tr valign="top"> <td align="left" style="border-left: 1px solid rgb(0, 0, 0);"> </td> <td align="left" width="1%"> $ </td> <td align="right" width="10%"> </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> $ </td> <td align="right" width="10%"> </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> $ </td> <td align="right" width="10%"> </td> <td align="left" style="border-right: 1px solid rgb(0, 0, 0);" width="2%"> </td> </tr> <tr> <td style="border-left: 1px solid rgb(0, 0, 0);"> </td> <td width="1%"> </td> <td width="10%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="10%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="10%"> </td> <td style="border-right: 1px solid rgb(0, 0, 0);" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="border-left: 1px solid rgb(0, 0, 0);">Cash paid during the period for interest</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> - </td> <td align="left" bgcolor="#e6efff" style="border-right: 1px solid rgb(0, 0, 0);" width="2%"> </td> </tr> <tr valign="top"> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">Cash paid during the period for income taxes</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> - </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="2%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> - </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="2%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> - </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0); border-right: 1px solid rgb(0, 0, 0);" width="2%"> </td> </tr> </table>

0 0 0 0 0 0 500000 60000 0.12 500000 48300

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr> <td valign="top" width="5%"> 9.</td> <td> Restatement </td> </tr> </table> The Company has restated its previously issued November 30, 2011 financial statements for matters related to the following items: On 16 August 2011, the Company received $550,000 from an investor for a convertible promissory note (conversion price of $.40, with a price reset feature if the Company issues stock below this conversion price), 1,375,000 warrants to purchase shares of the Company’s common stock (exercise price of $0.60, expiring 5 years from the date of issuance, containing a price reset feature if the Company issues stock below the exercise price), and 220,000 shares of the Company’s common stock. The Company originally recorded amounts based on the relative fair values assigned to the debt, common stock, and warrants. This created a discount on debt of $62,432, which was going to be amortized over the life of the debt. The Company has determined that the conversion feature and warrants were derivatives requiring bifurcation. Accordingly, the Company has calculated the value of the related derivative liabilities using the Black-Scholes model and has corrected the related debt discounts and amortization. See the adjustments to each financial statement line item below. Condensed Balance Sheet <div> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left">  </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="center" colspan="7" style="border-bottom: 1px solid rgb(0, 0, 0);" width="36%"> November 30, 2011</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="2%">  </td> </tr> <tr valign="top"> <td align="left">  </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="center" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> Previously Reported</td> <td align="center" style="border-bottom: 1px solid rgb(0, 0, 0);" width="2%">  </td> <td align="center" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="center" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> Adjustments</td> <td align="center" style="border-bottom: 1px solid rgb(0, 0, 0);" width="2%">  </td> <td align="center" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="center" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> As Restated</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="2%">  </td> </tr> <tr valign="top"> <td align="left"> Assets </td> <td align="left" width="1%">  </td> <td align="left" width="10%">  </td> <td align="left" width="2%">  </td> <td align="left" width="1%">  </td> <td align="left" width="10%">  </td> <td align="left" width="2%">  </td> <td align="left" width="1%">  </td> <td align="left" width="10%">  </td> <td align="left" width="2%">  </td> </tr> <tr> <td>  </td> <td width="1%">  </td> <td width="10%">  </td> <td width="2%">  </td> <td width="1%">  </td> <td width="10%">  </td> <td width="2%">  </td> <td width="1%">  </td> <td width="10%">  </td> <td width="2%">  </td> </tr> <tr valign="top"> <td align="left"> Current assets:</td> <td align="left" width="1%">  </td> <td align="left" width="10%">  </td> <td align="left" width="2%">  </td> <td align="left" width="1%">  </td> <td align="left" width="10%">  </td> <td align="left" width="2%">  </td> <td align="left" width="1%">  </td> <td align="left" width="10%">  </td> <td align="left" width="2%">  </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> Cash and cash equivalents</td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> $</td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%">   36,990</td> <td align="left" bgcolor="#e6efff" width="2%">  </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> -</td> <td align="left" bgcolor="#e6efff" width="2%">  </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> $</td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%">   36,990</td> <td align="left" bgcolor="#e6efff" width="2%">  </td> </tr> <tr valign="top"> <td align="left"> Total Current Assets</td> <td align="left" width="1%">  </td> <td align="right" width="10%"> 36,990</td> <td align="left" width="2%">  </td> <td align="left" width="1%">  </td> <td align="right" width="10%"> -</td> <td align="left" width="2%">  </td> <td align="left" width="1%">  </td> <td align="right" width="10%"> 36,990</td> <td align="left" width="2%">  </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> Mineral properties</td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> 120,000</td> <td align="left" bgcolor="#e6efff" width="2%">  </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> -</td> <td align="left" bgcolor="#e6efff" width="2%">  </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> 120,000</td> <td align="left" bgcolor="#e6efff" width="2%">  </td> </tr> <tr> <td>  </td> <td width="1%">  </td> <td width="10%">  </td> <td width="2%">  </td> <td width="1%">  </td> <td width="10%">  </td> <td width="2%">  </td> <td width="1%">  </td> <td width="10%">  </td> <td width="2%">  </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> Total Assets</td> <td align="left" bgcolor="#e6efff" style="border-bottom: 2px solid rgb(0, 0, 0);" width="1%"> $</td> <td align="right" bgcolor="#e6efff" style="border-bottom: 2px solid rgb(0, 0, 0);" width="10%">   156,990</td> <td align="left" bgcolor="#e6efff" width="2%">  </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 2px solid rgb(0, 0, 0);" width="1%">  </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 2px solid rgb(0, 0, 0);" width="10%">  </td> <td align="left" bgcolor="#e6efff" width="2%">  </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 2px solid rgb(0, 0, 0);" width="1%"> $</td> <td align="right" bgcolor="#e6efff" style="border-bottom: 2px solid rgb(0, 0, 0);" width="10%">   156,990</td> <td align="left" bgcolor="#e6efff" width="2%">  </td> </tr> <tr> <td>  </td> <td width="1%">  </td> <td width="10%">  </td> <td width="2%">  </td> <td width="1%">  </td> <td width="10%">  </td> <td width="2%">  </td> <td width="1%">  </td> <td width="10%">  </td> <td width="2%">  </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> Liabilities and Stockholders’ Equity </td> <td align="left" bgcolor="#e6efff" width="1%">  </td> <td align="left" bgcolor="#e6efff" width="10%">  </td> <td align="left" bgcolor="#e6efff" width="2%">  </td> <td align="left" bgcolor="#e6efff" width="1%">  </td> <td align="left" bgcolor="#e6efff" width="10%">  </td> <td align="left" bgcolor="#e6efff" width="2%">  </td> <td align="left" bgcolor="#e6efff" width="1%">  </td> <td align="left" bgcolor="#e6efff" width="10%">  </td> <td align="left" bgcolor="#e6efff" width="2%">  </td> </tr> <tr valign="top"> <td align="left"> Current liabilities:</td> <td align="left" width="1%">  </td> <td align="left" width="10%">  </td> <td align="left" width="2%">  </td> <td align="left" width="1%">  </td> <td align="left" width="10%">  </td> <td align="left" width="2%">  </td> <td align="left" width="1%">  </td> <td align="left" width="10%">  </td> <td align="left" width="2%">  </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> Accounts payable and accrued expenses</td> <td align="left" bgcolor="#e6efff" width="1%"> $</td> <td align="right" bgcolor="#e6efff" width="10%">   346,347</td> <td align="left" bgcolor="#e6efff" width="2%">  </td> <td align="left" bgcolor="#e6efff" width="1%"> $</td> <td align="right" bgcolor="#e6efff" width="10%">   14,378</td> <td align="left" bgcolor="#e6efff" width="2%">  </td> <td align="left" bgcolor="#e6efff" width="1%"> $</td> <td align="right" bgcolor="#e6efff" width="10%">   360,725</td> <td align="left" bgcolor="#e6efff" width="2%">  </td> </tr> <tr valign="top"> <td align="left"> Convertible promissory note, net of discount</td> <td align="left" width="1%">  </td> <td align="right" width="10%"> 502,039</td> <td align="left" width="2%">  </td> <td align="left" width="1%">  </td> <td align="right" width="10%"> (276,823</td> <td align="left" width="2%"> )</td> <td align="left" width="1%">  </td> <td align="right" width="10%"> 225,216</td> <td align="left" width="2%">  </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> Derivative liability</td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> -</td> <td align="left" bgcolor="#e6efff" width="2%">  </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> 261,837</td> <td align="left" bgcolor="#e6efff" width="2%">  </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> 261,837</td> <td align="left" bgcolor="#e6efff" width="2%">  </td> </tr> <tr valign="top"> <td align="left">     Total Current Liabilities</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> 848,386</td> <td align="left" width="2%">  </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> (608</td> <td align="left" width="2%"> )</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> 847,778</td> <td align="left" width="2%">  </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> Long Term liabilities:</td> <td align="left" bgcolor="#e6efff" width="1%">  </td> <td align="left" bgcolor="#e6efff" width="10%">  </td> <td align="left" bgcolor="#e6efff" width="2%">  </td> <td align="left" bgcolor="#e6efff" width="1%">  </td> <td align="left" bgcolor="#e6efff" width="10%">  </td> <td align="left" bgcolor="#e6efff" width="2%">  </td> <td align="left" bgcolor="#e6efff" width="1%">  </td> <td align="left" bgcolor="#e6efff" width="10%">  </td> <td align="left" bgcolor="#e6efff" width="2%">  </td> </tr> <tr valign="top"> <td align="left"> Derivative liability</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> -</td> <td align="left" width="2%">  </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> 274,946</td> <td align="left" width="2%">  </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> 274,946</td> <td align="left" width="2%">  </td> </tr> <tr> <td bgcolor="#e6efff">  </td> <td bgcolor="#e6efff" width="1%">  </td> <td bgcolor="#e6efff" width="10%">  </td> <td bgcolor="#e6efff" width="2%">  </td> <td bgcolor="#e6efff" width="1%">  </td> <td bgcolor="#e6efff" width="10%">  </td> <td bgcolor="#e6efff" width="2%">  </td> <td bgcolor="#e6efff" width="1%">  </td> <td bgcolor="#e6efff" width="10%">  </td> <td bgcolor="#e6efff" width="2%">  </td> </tr> <tr valign="top"> <td align="left"> Total Liabilities</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> 848,386</td> <td align="left" width="2%">  </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> 274,338</td> <td align="left" width="2%">  </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> 1,122,724</td> <td align="left" width="2%">  </td> </tr> <tr> <td bgcolor="#e6efff">  </td> <td bgcolor="#e6efff" width="1%">  </td> <td bgcolor="#e6efff" width="10%">  </td> <td bgcolor="#e6efff" width="2%">  </td> <td bgcolor="#e6efff" width="1%">  </td> <td bgcolor="#e6efff" width="10%">  </td> <td bgcolor="#e6efff" width="2%">  </td> <td bgcolor="#e6efff" width="1%">  </td> <td bgcolor="#e6efff" width="10%">  </td> <td bgcolor="#e6efff" width="2%">  </td> </tr> <tr valign="top"> <td align="left"> Stockholders’ equity:</td> <td align="left" width="1%">  </td> <td align="left" width="10%">  </td> <td align="left" width="2%">  </td> <td align="left" width="1%">  </td> <td align="left" width="10%">  </td> <td align="left" width="2%">  </td> <td align="left" width="1%">  </td> <td align="left" width="10%">  </td> <td align="left" width="2%">  </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">   500,000,000 shares authorized, $0.001 par values;</td> <td align="left" bgcolor="#e6efff" width="1%">  </td> <td align="left" bgcolor="#e6efff" width="10%">  </td> <td align="left" bgcolor="#e6efff" width="2%">  </td> <td align="left" bgcolor="#e6efff" width="1%">  </td> <td align="left" bgcolor="#e6efff" width="10%">  </td> <td align="left" bgcolor="#e6efff" width="2%">  </td> <td align="left" bgcolor="#e6efff" width="1%">  </td> <td align="left" bgcolor="#e6efff" width="10%">  </td> <td align="left" bgcolor="#e6efff" width="2%">  </td> </tr> <tr valign="top"> <td align="left">   6,199,960 shares issued and outstanding at November 30 2011</td> <td align="left" width="1%">  </td> <td align="right" width="10%"> 6,200</td> <td align="left" width="2%">  </td> <td align="left" width="1%">  </td> <td align="right" width="10%"> -</td> <td align="left" width="2%">  </td> <td align="left" width="1%">  </td> <td align="right" width="10%"> 6,200</td> <td align="left" width="2%">  </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> Additional-paid-in capital</td> <td align="left" bgcolor="#e6efff" width="1%">  </td> <td align="right" bgcolor="#e6efff" width="10%"> 2,721,096</td> <td align="left" bgcolor="#e6efff" width="2%">  </td> <td align="left" bgcolor="#e6efff" width="1%">  </td> <td align="right" bgcolor="#e6efff" width="10%"> 22,489</td> <td align="left" bgcolor="#e6efff" width="2%">  </td> <td align="left" bgcolor="#e6efff" width="1%">  </td> <td align="right" bgcolor="#e6efff" width="10%"> 2,743,585</td> <td align="left" bgcolor="#e6efff" width="2%">  </td> </tr> <tr valign="top"> <td align="left"> Subscriptions received</td> <td align="left" width="1%">  </td> <td align="right" width="10%"> 60,000</td> <td align="left" width="2%">  </td> <td align="left" width="1%">  </td> <td align="right" width="10%"> -</td> <td align="left" width="2%">  </td> <td align="left" width="1%">  </td> <td align="right" width="10%"> 60,000</td> <td align="left" width="2%">  </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> Deficit accumulated during exploration stage</td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> (3,478,692</td> <td align="left" bgcolor="#e6efff" width="2%"> )</td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> (296,827</td> <td align="left" bgcolor="#e6efff" width="2%"> )</td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> (3,775,519</td> <td align="left" bgcolor="#e6efff" width="2%"> )</td> </tr> <tr valign="top"> <td align="left"> Total Stockholders' Equity</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> (691,396</td> <td align="left" width="2%"> )</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> (274,338</td> <td align="left" width="2%"> )</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> (965,734</td> <td align="left" width="2%"> )</td> </tr> <tr> <td bgcolor="#e6efff">  </td> <td bgcolor="#e6efff" width="1%">  </td> <td bgcolor="#e6efff" width="10%">  </td> <td bgcolor="#e6efff" width="2%">  </td> <td bgcolor="#e6efff" width="1%">  </td> <td bgcolor="#e6efff" width="10%">  </td> <td bgcolor="#e6efff" width="2%">  </td> <td bgcolor="#e6efff" width="1%">  </td> <td bgcolor="#e6efff" width="10%">  </td> <td bgcolor="#e6efff" width="2%">  </td> </tr> <tr valign="top"> <td align="left"> Total Liabilities and Stockholders' Equity</td> <td align="left" style="border-bottom: 2px solid rgb(0, 0, 0);" width="1%"> $</td> <td align="right" style="border-bottom: 2px solid rgb(0, 0, 0);" width="10%">   156,990</td> <td align="left" width="2%">  </td> <td align="left" style="border-bottom: 2px solid rgb(0, 0, 0);" width="1%"> $</td> <td align="right" style="border-bottom: 2px solid rgb(0, 0, 0);" width="10%">   -</td> <td align="left" width="2%">  </td> <td align="left" style="border-bottom: 2px solid rgb(0, 0, 0);" width="1%"> $</td> <td align="right" style="border-bottom: 2px solid rgb(0, 0, 0);" width="10%">   156,990</td> <td align="left" width="2%">  </td> </tr> </table> </div> Condensed Statement of Operations <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left">  </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="center" colspan="7" style="border-bottom: 1px solid rgb(0, 0, 0);" width="36%"> Three Months Ended November 30, 2011</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="2%">  </td> </tr> <tr valign="top"> <td align="left">  </td> <td align="left" width="1%">  </td> <td align="center" width="10%"> Previously</td> <td align="center" width="2%">  </td> <td align="center" width="1%">  </td> <td align="center" width="10%">  </td> <td align="center" width="2%">  </td> <td align="center" width="1%">  </td> <td align="center" width="10%">  </td> <td align="left" width="2%">  </td> </tr> <tr valign="top"> <td align="left">  </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="center" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> Reported</td> <td align="center" width="2%">  </td> <td align="center" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="center" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> Adjustments</td> <td align="center" width="2%">  </td> <td align="center" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="center" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> As Restated</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="2%">  </td> </tr> <tr valign="top"> <td align="left"> Operatin g Expenses:</td> <td align="left" width="1%">  </td> <td align="left" width="10%">  </td> <td align="left" width="2%">  </td> <td align="left" width="1%">  </td> <td align="left" width="10%">  </td> <td align="left" width="2%">  </td> <td align="left" width="1%">  </td> <td align="left" width="10%">  </td> <td align="left" width="2%">  </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> Exploration costs</td> <td align="left" bgcolor="#e6efff" width="1%">  </td> <td align="right" bgcolor="#e6efff" width="10%"> 82,650</td> <td align="left" bgcolor="#e6efff" width="2%">  </td> <td align="left" bgcolor="#e6efff" width="1%">  </td> <td align="right" bgcolor="#e6efff" width="10%"> -</td> <td align="left" bgcolor="#e6efff" width="2%">  </td> <td align="left" bgcolor="#e6efff" width="1%">  </td> <td align="right" bgcolor="#e6efff" width="10%"> 82,650</td> <td align="left" bgcolor="#e6efff" width="2%">  </td> </tr> <tr valign="top"> <td align="left"> General and Administrative</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> 182,374</td> <td align="left" width="2%">  </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> 20,000</td> <td align="left" width="2%">  </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> 202,374</td> <td align="left" width="2%">  </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> Total Operating Expenses</td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> 265,024</td> <td align="left" bgcolor="#e6efff" width="2%">  </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> -</td> <td align="left" bgcolor="#e6efff" width="2%">  </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> 285,024</td> <td align="left" bgcolor="#e6efff" width="2%">  </td> </tr> <tr valign="top"> <td align="left"> Other (Income) and Expense:</td> <td align="left" width="1%">  </td> <td align="left" width="10%">  </td> <td align="left" width="2%">  </td> <td align="left" width="1%">  </td> <td align="left" width="10%">  </td> <td align="left" width="2%">  </td> <td align="left" width="1%">  </td> <td align="left" width="10%">  </td> <td align="left" width="2%">  </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> Interest expense</td> <td align="left" bgcolor="#e6efff" width="1%">  </td> <td align="right" bgcolor="#e6efff" width="10%"> 13,770</td> <td align="left" bgcolor="#e6efff" width="2%">  </td> <td align="left" bgcolor="#e6efff" width="1%">  </td> <td align="right" bgcolor="#e6efff" width="10%"> 50,264</td> <td align="left" bgcolor="#e6efff" width="2%">  </td> <td align="left" bgcolor="#e6efff" width="1%">  </td> <td align="right" bgcolor="#e6efff" width="10%"> 64,033</td> <td align="left" bgcolor="#e6efff" width="2%">  </td> </tr> <tr valign="top"> <td align="left"> Loss on derivative liability</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> -</td> <td align="left" width="2%">  </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> 39,126</td> <td align="left" width="2%">  </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> 39,127</td> <td align="left" width="2%">  </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> Total other (income) expense</td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> 13,770</td> <td align="left" bgcolor="#e6efff" width="2%">  </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> 89,390</td> <td align="left" bgcolor="#e6efff" width="2%">  </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> 103,160</td> <td align="left" bgcolor="#e6efff" width="2%">  </td> </tr> <tr valign="top"> <td align="left"> NET LOSS</td> <td align="left" width="1%">  </td> <td align="right" width="10%"> 278,794</td> <td align="left" width="2%">  </td> <td align="left" width="1%">  </td> <td align="right" width="10%"> 89,390</td> <td align="left" width="2%">  </td> <td align="left" width="1%">  </td> <td align="right" width="10%"> 388,184</td> <td align="left" width="2%">  </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> NET LOSS PER COMMON SHARE</td> <td align="left" bgcolor="#e6efff" width="1%">  </td> <td align="left" bgcolor="#e6efff" width="10%">  </td> <td align="left" bgcolor="#e6efff" width="2%">  </td> <td align="left" bgcolor="#e6efff" width="1%">  </td> <td align="left" bgcolor="#e6efff" width="10%">  </td> <td align="left" bgcolor="#e6efff" width="2%">  </td> <td align="left" bgcolor="#e6efff" width="1%">  </td> <td align="left" bgcolor="#e6efff" width="10%">  </td> <td align="left" bgcolor="#e6efff" width="2%">  </td> </tr> <tr valign="top"> <td align="left"> Basic and diluted</td> <td align="left" width="1%">  </td> <td align="right" width="10%"> (0.04</td> <td align="left" width="2%"> )</td> <td align="left" width="1%">  </td> <td align="left" width="10%">  </td> <td align="left" width="2%">  </td> <td align="left" width="1%">  </td> <td align="right" width="10%"> (0.06</td> <td align="left" width="2%"> )</td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> WEIGHTED AVERAGE OUTSTANDING SHARES</td> <td align="left" bgcolor="#e6efff" width="1%">  </td> <td align="left" bgcolor="#e6efff" width="10%">  </td> <td align="left" bgcolor="#e6efff" width="2%">  </td> <td align="left" bgcolor="#e6efff" width="1%">  </td> <td align="left" bgcolor="#e6efff" width="10%">  </td> <td align="left" bgcolor="#e6efff" width="2%">  </td> <td align="left" bgcolor="#e6efff" width="1%">  </td> <td align="left" bgcolor="#e6efff" width="10%">  </td> <td align="left" bgcolor="#e6efff" width="2%">  </td> </tr> <tr valign="top"> <td align="left"> Basic and diluted</td> <td align="left" width="1%">  </td> <td align="right" width="10%"> 6,199,960</td> <td align="left" width="2%">  </td> <td align="left" width="1%">  </td> <td align="left" width="10%">  </td> <td align="left" width="2%">  </td> <td align="left" width="1%">  </td> <td align="right" width="10%"> 6,199,960</td> <td align="left" width="2%">  </td> </tr> </table> Condensed Statement of Cash Flows <div> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left">  </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="center" colspan="7" style="border-bottom: 1px solid rgb(0, 0, 0);" width="36%"> Three Months Ended November 30, 2011</td> <td align="left" width="2%">  </td> </tr> <tr valign="top"> <td align="left">  </td> <td align="left" width="1%">  </td> <td align="center" width="10%"> Previously</td> <td align="center" width="2%">  </td> <td align="center" width="1%">  </td> <td align="center" width="10%">  </td> <td align="center" width="2%">  </td> <td align="center" width="1%">  </td> <td align="center" width="10%">  </td> <td align="left" width="2%">  </td> </tr> <tr valign="top"> <td align="left">  </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="center" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> Reported</td> <td align="center" width="2%">  </td> <td align="center" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="center" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> Adjustments</td> <td align="center" width="2%">  </td> <td align="center" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="center" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> As Restated</td> <td align="left" width="2%">  </td> </tr> <tr> <td>  </td> <td width="1%">  </td> <td width="10%">  </td> <td width="2%">  </td> <td width="1%">  </td> <td width="10%">  </td> <td width="2%">  </td> <td width="1%">  </td> <td width="10%">  </td> <td width="2%">  </td> </tr> <tr> <td>  </td> <td width="1%">  </td> <td width="10%">  </td> <td width="2%">  </td> <td width="1%">  </td> <td width="10%">  </td> <td width="2%">  </td> <td width="1%">  </td> <td width="10%">  </td> <td width="2%">  </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> Cash flows from operating activities:</td> <td align="left" bgcolor="#e6efff" width="1%">  </td> <td align="left" bgcolor="#e6efff" width="10%">  </td> <td align="left" bgcolor="#e6efff" width="2%">  </td> <td align="left" bgcolor="#e6efff" width="1%">  </td> <td align="left" bgcolor="#e6efff" width="10%">  </td> <td align="left" bgcolor="#e6efff" width="2%">  </td> <td align="left" bgcolor="#e6efff" width="1%">  </td> <td align="left" bgcolor="#e6efff" width="10%">  </td> <td align="left" bgcolor="#e6efff" width="2%">  </td> </tr> <tr valign="top"> <td align="left"> Net Loss</td> <td align="left" width="1%"> $</td> <td align="right" width="10%">   (278,794</td> <td align="left" width="2%"> )</td> <td align="left" width="1%">  $</td> <td align="right" width="10%"> (89,390</td> <td align="left" width="2%"> )</td> <td align="left" width="1%">  $</td> <td align="right" width="10%"> (386,184</td> <td align="left" width="2%"> )</td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> Adjustments to reconcile net loss to net cash provided by (used in)</td> <td align="left" bgcolor="#e6efff" width="1%">  </td> <td align="left" bgcolor="#e6efff" width="10%">  </td> <td align="left" bgcolor="#e6efff" width="2%">  </td> <td align="left" bgcolor="#e6efff" width="1%">  </td> <td align="left" bgcolor="#e6efff" width="10%">  </td> <td align="left" bgcolor="#e6efff" width="2%">  </td> <td align="left" bgcolor="#e6efff" width="1%">  </td> <td align="left" bgcolor="#e6efff" width="10%">  </td> <td align="left" bgcolor="#e6efff" width="2%">  </td> </tr> <tr valign="top"> <td align="left"> operating activities:</td> <td align="left" width="1%">  </td> <td align="left" width="10%">  </td> <td align="left" width="2%">  </td> <td align="left" width="1%">  </td> <td align="left" width="10%">  </td> <td align="left" width="2%">  </td> <td align="left" width="1%">  </td> <td align="left" width="10%">  </td> <td align="left" width="2%">  </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> Amortization of discount and interest expense</td> <td align="left" bgcolor="#e6efff" width="1%">  </td> <td align="right" bgcolor="#e6efff" width="10%"> 12,404</td> <td align="left" bgcolor="#e6efff" width="2%">  </td> <td align="left" bgcolor="#e6efff" width="1%">  </td> <td align="right" bgcolor="#e6efff" width="10%"> 37,917</td> <td align="left" bgcolor="#e6efff" width="2%">  </td> <td align="left" bgcolor="#e6efff" width="1%">  </td> <td align="right" bgcolor="#e6efff" width="10%"> 50,321</td> <td align="left" bgcolor="#e6efff" width="2%">  </td> </tr> <tr valign="top"> <td align="left"> Loss on derivative liability</td> <td align="left" width="1%">  </td> <td align="right" width="10%"> -</td> <td align="left" width="2%">  </td> <td align="left" width="1%">  </td> <td align="right" width="10%"> 39,127</td> <td align="left" width="2%">  </td> <td align="left" width="1%">  </td> <td align="right" width="10%"> 39,127</td> <td align="left" width="2%">  </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> Vesting of stock options</td> <td align="left" bgcolor="#e6efff" width="1%">  </td> <td align="right" bgcolor="#e6efff" width="10%"> 28,806</td> <td align="left" bgcolor="#e6efff" width="2%">  </td> <td align="left" bgcolor="#e6efff" width="1%">  </td> <td align="right" bgcolor="#e6efff" width="10%"> -</td> <td align="left" bgcolor="#e6efff" width="2%">  </td> <td align="left" bgcolor="#e6efff" width="1%">  </td> <td align="right" bgcolor="#e6efff" width="10%"> 28,806</td> <td align="left" bgcolor="#e6efff" width="2%">  </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> Contributions to capital by related party</td> <td align="left" bgcolor="#e6efff" width="1%">  </td> <td align="right" bgcolor="#e6efff" width="10%">  </td> <td align="left" bgcolor="#e6efff" width="2%">  </td> <td align="left" bgcolor="#e6efff" width="1%">  </td> <td align="right" bgcolor="#e6efff" width="10%"> 20,000</td> <td align="left" bgcolor="#e6efff" width="2%">  </td> <td align="left" bgcolor="#e6efff" width="1%">  </td> <td align="right" bgcolor="#e6efff" width="10%"> 20,000</td> <td align="left" bgcolor="#e6efff" width="2%">  </td> </tr> <tr valign="top"> <td align="left"> Changes in operating assets and liabilities:</td> <td align="left" width="1%">  </td> <td align="left" width="10%">  </td> <td align="left" width="2%">  </td> <td align="left" width="1%">  </td> <td align="left" width="10%">  </td> <td align="left" width="2%">  </td> <td align="left" width="1%">  </td> <td align="left" width="10%">  </td> <td align="left" width="2%">  </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> Increase in prepaid expenses</td> <td align="left" bgcolor="#e6efff" width="1%">  </td> <td align="right" bgcolor="#e6efff" width="10%"> 25,000</td> <td align="left" bgcolor="#e6efff" width="2%">  </td> <td align="left" bgcolor="#e6efff" width="1%">  </td> <td align="right" bgcolor="#e6efff" width="10%"> -</td> <td align="left" bgcolor="#e6efff" width="2%">  </td> <td align="left" bgcolor="#e6efff" width="1%">  </td> <td align="right" bgcolor="#e6efff" width="10%"> 25,000</td> <td align="left" bgcolor="#e6efff" width="2%">  </td> </tr> <tr valign="top"> <td align="left"> Increase in accounts payable and accrued expenses</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> 17,697</td> <td align="left" width="2%">  </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> 12,346</td> <td align="left" width="2%">  </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> 30,043</td> <td align="left" width="2%">  </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> Net cash used in operating activities</td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> (194,887</td> <td align="left" bgcolor="#e6efff" width="2%"> )</td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> -</td> <td align="left" bgcolor="#e6efff" width="2%">  </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> (194,887</td> <td align="left" bgcolor="#e6efff" width="2%"> )</td> </tr> <tr> <td>  </td> <td width="1%">  </td> <td width="10%">  </td> <td width="2%">  </td> <td width="1%">  </td> <td width="10%">  </td> <td width="2%">  </td> <td width="1%">  </td> <td width="10%">  </td> <td width="2%">  </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> Cash flows used in investing activities:</td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> -</td> <td align="left" bgcolor="#e6efff" width="2%">  </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> -</td> <td align="left" bgcolor="#e6efff" width="2%">  </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> -</td> <td align="left" bgcolor="#e6efff" width="2%">  </td> </tr> <tr valign="top"> <td align="left"> Net cash used in investing activities</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> -</td> <td align="left" width="2%">  </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> -</td> <td align="left" width="2%">  </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> -</td> <td align="left" width="2%">  </td> </tr> <tr> <td bgcolor="#e6efff">  </td> <td bgcolor="#e6efff" width="1%">  </td> <td bgcolor="#e6efff" width="10%">  </td> <td bgcolor="#e6efff" width="2%">  </td> <td bgcolor="#e6efff" width="1%">  </td> <td bgcolor="#e6efff" width="10%">  </td> <td bgcolor="#e6efff" width="2%">  </td> <td bgcolor="#e6efff" width="1%">  </td> <td bgcolor="#e6efff" width="10%">  </td> <td bgcolor="#e6efff" width="2%">  </td> </tr> <tr valign="top"> <td align="left"> Cash flows from financing activities:</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> -</td> <td align="left" width="2%">  </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> -</td> <td align="left" width="2%">  </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> -</td> <td align="left" width="2%">  </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> Net cash used in financing activities</td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> -</td> <td align="left" bgcolor="#e6efff" width="2%">  </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> -</td> <td align="left" bgcolor="#e6efff" width="2%">  </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> -</td> <td align="left" bgcolor="#e6efff" width="2%">  </td> </tr> <tr> <td>  </td> <td width="1%">  </td> <td width="10%">  </td> <td width="2%">  </td> <td width="1%">  </td> <td width="10%">  </td> <td width="2%">  </td> <td width="1%">  </td> <td width="10%">  </td> <td width="2%">  </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> Net decrease in cash and cash equivalents</td> <td align="left" bgcolor="#e6efff" width="1%">  </td> <td align="right" bgcolor="#e6efff" width="10%"> (194,887</td> <td align="left" bgcolor="#e6efff" width="2%"> )</td> <td align="left" bgcolor="#e6efff" width="1%">  </td> <td align="right" bgcolor="#e6efff" width="10%"> -</td> <td align="left" bgcolor="#e6efff" width="2%">  </td> <td align="left" bgcolor="#e6efff" width="1%">  </td> <td align="right" bgcolor="#e6efff" width="10%"> (194,887</td> <td align="left" bgcolor="#e6efff" width="2%"> )</td> </tr> <tr valign="top"> <td align="left"> Cash and cash equivalents at the beginning of period</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> 231,877</td> <td align="left" width="2%">  </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%">  </td> <td align="left" width="2%">  </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> 231,877</td> <td align="left" width="2%">  </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> Cash and cash equivalents at the end of period</td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> 36,990</td> <td align="left" bgcolor="#e6efff" width="2%">  </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%">  </td> <td align="left" bgcolor="#e6efff" width="2%">  </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">  </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> 36,990</td> <td align="left" bgcolor="#e6efff" width="2%">  </td> </tr> </table> </div>

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" colspan="7" style="border-bottom: 1px solid rgb(0, 0, 0);" width="36%">November 30, 2011</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%">Previously Reported</td> <td align="center" style="border-bottom: 1px solid rgb(0, 0, 0);" width="2%"> </td> <td align="center" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%">Adjustments</td> <td align="center" style="border-bottom: 1px solid rgb(0, 0, 0);" width="2%"> </td> <td align="center" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%">As Restated</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> Assets </td> <td align="left" width="1%"> </td> <td align="left" width="10%"> </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="left" width="10%"> </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="left" width="10%"> </td> <td align="left" width="2%"> </td> </tr> <tr> <td> </td> <td width="1%"> </td> <td width="10%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="10%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="10%"> </td> <td width="2%"> </td> </tr> <tr valign="top"> <td align="left"> Current assets: </td> <td align="left" width="1%"> </td> <td align="left" width="10%"> </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="left" width="10%"> </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="left" width="10%"> </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Cash and cash equivalents</td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">$</td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%">   36,990 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">$</td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%">   36,990 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Total Current Assets</td> <td align="left" width="1%"> </td> <td align="right" width="10%"> 36,990 </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="10%"> - </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="10%"> 36,990 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Mineral properties</td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> 120,000 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> 120,000 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr> <td> </td> <td width="1%"> </td> <td width="10%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="10%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="10%"> </td> <td width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> Total Assets </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 2px solid rgb(0, 0, 0);" width="1%">$</td> <td align="right" bgcolor="#e6efff" style="border-bottom: 2px solid rgb(0, 0, 0);" width="10%">   156,990 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 2px solid rgb(0, 0, 0);" width="1%"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 2px solid rgb(0, 0, 0);" width="10%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 2px solid rgb(0, 0, 0);" width="1%">$</td> <td align="right" bgcolor="#e6efff" style="border-bottom: 2px solid rgb(0, 0, 0);" width="10%">   156,990 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr> <td> </td> <td width="1%"> </td> <td width="10%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="10%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="10%"> </td> <td width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> Liabilities and Stockholders’ Equity </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="10%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="10%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="10%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> Current liabilities: </td> <td align="left" width="1%"> </td> <td align="left" width="10%"> </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="left" width="10%"> </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="left" width="10%"> </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Accounts payable and accrued expenses</td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="10%">   346,347 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="10%">   14,378 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="10%">   360,725 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Convertible promissory note, net of discount</td> <td align="left" width="1%"> </td> <td align="right" width="10%"> 502,039 </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="10%"> (276,823 </td> <td align="left" width="2%">)</td> <td align="left" width="1%"> </td> <td align="right" width="10%"> 225,216 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Derivative liability</td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> 261,837 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> 261,837 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left">     Total Current Liabilities </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> 848,386 </td> <td align="left" width="2%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> (608 </td> <td align="left" width="2%">)</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> 847,778 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> Long Term liabilities: </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="10%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="10%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="10%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Derivative liability</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> - </td> <td align="left" width="2%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> 274,946 </td> <td align="left" width="2%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> 274,946 </td> <td align="left" width="2%"> </td> </tr> <tr> <td bgcolor="#e6efff"> </td> <td bgcolor="#e6efff" width="1%"> </td> <td bgcolor="#e6efff" width="10%"> </td> <td bgcolor="#e6efff" width="2%"> </td> <td bgcolor="#e6efff" width="1%"> </td> <td bgcolor="#e6efff" width="10%"> </td> <td bgcolor="#e6efff" width="2%"> </td> <td bgcolor="#e6efff" width="1%"> </td> <td bgcolor="#e6efff" width="10%"> </td> <td bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> Total Liabilities </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> 848,386 </td> <td align="left" width="2%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> 274,338 </td> <td align="left" width="2%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> 1,122,724 </td> <td align="left" width="2%"> </td> </tr> <tr> <td bgcolor="#e6efff"> </td> <td bgcolor="#e6efff" width="1%"> </td> <td bgcolor="#e6efff" width="10%"> </td> <td bgcolor="#e6efff" width="2%"> </td> <td bgcolor="#e6efff" width="1%"> </td> <td bgcolor="#e6efff" width="10%"> </td> <td bgcolor="#e6efff" width="2%"> </td> <td bgcolor="#e6efff" width="1%"> </td> <td bgcolor="#e6efff" width="10%"> </td> <td bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> Stockholders’ equity: </td> <td align="left" width="1%"> </td> <td align="left" width="10%"> </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="left" width="10%"> </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="left" width="10%"> </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">   500,000,000 shares authorized, $0.001 par values; </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="10%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="10%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="10%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left">   6,199,960 shares issued and outstanding at November 30 2011 </td> <td align="left" width="1%"> </td> <td align="right" width="10%"> 6,200 </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="10%"> - </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="10%"> 6,200 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Additional-paid-in capital</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> 2,721,096 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> 22,489 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> 2,743,585 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Subscriptions received</td> <td align="left" width="1%"> </td> <td align="right" width="10%"> 60,000 </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="10%"> - </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="10%"> 60,000 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Deficit accumulated during exploration stage</td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> (3,478,692 </td> <td align="left" bgcolor="#e6efff" width="2%">)</td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> (296,827 </td> <td align="left" bgcolor="#e6efff" width="2%">)</td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> (3,775,519 </td> <td align="left" bgcolor="#e6efff" width="2%">)</td> </tr> <tr valign="top"> <td align="left"> Total Stockholders' Equity </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> (691,396 </td> <td align="left" width="2%">)</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> (274,338 </td> <td align="left" width="2%">)</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> (965,734 </td> <td align="left" width="2%">)</td> </tr> <tr> <td bgcolor="#e6efff"> </td> <td bgcolor="#e6efff" width="1%"> </td> <td bgcolor="#e6efff" width="10%"> </td> <td bgcolor="#e6efff" width="2%"> </td> <td bgcolor="#e6efff" width="1%"> </td> <td bgcolor="#e6efff" width="10%"> </td> <td bgcolor="#e6efff" width="2%"> </td> <td bgcolor="#e6efff" width="1%"> </td> <td bgcolor="#e6efff" width="10%"> </td> <td bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> Total Liabilities and Stockholders' Equity </td> <td align="left" style="border-bottom: 2px solid rgb(0, 0, 0);" width="1%">$</td> <td align="right" style="border-bottom: 2px solid rgb(0, 0, 0);" width="10%">   156,990 </td> <td align="left" width="2%"> </td> <td align="left" style="border-bottom: 2px solid rgb(0, 0, 0);" width="1%">$</td> <td align="right" style="border-bottom: 2px solid rgb(0, 0, 0);" width="10%">   - </td> <td align="left" width="2%"> </td> <td align="left" style="border-bottom: 2px solid rgb(0, 0, 0);" width="1%">$</td> <td align="right" style="border-bottom: 2px solid rgb(0, 0, 0);" width="10%">   156,990 </td> <td align="left" width="2%"> </td> </tr> </table> 36990 0 36990 36990 0 36990 120000 0 120000 156990 156990 346347 14378 360725 502039 -276823 225216 0 261837 261837 848386 -608 847778 0 274946 274946 848386 274338 1122724 500000000 0.001 6199960 6200 0 6200 2721096 22489 2743585 60000 0 60000 -3478692 -296827 -3775519 -691396 -274338 -965734 156990 0 156990

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" colspan="7" style="border-bottom: 1px solid rgb(0, 0, 0);" width="36%">Three Months Ended November 30, 2011</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" width="10%">Previously</td> <td align="center" width="2%"> </td> <td align="center" width="1%"> </td> <td align="center" width="10%"> </td> <td align="center" width="2%"> </td> <td align="center" width="1%"> </td> <td align="center" width="10%"> </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%">Reported</td> <td align="center" width="2%"> </td> <td align="center" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%">Adjustments</td> <td align="center" width="2%"> </td> <td align="center" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%">As Restated</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> Operatin g Expenses: </td> <td align="left" width="1%"> </td> <td align="left" width="10%"> </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="left" width="10%"> </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="left" width="10%"> </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Exploration costs</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> 82,650 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> 82,650 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left">General and Administrative</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> 182,374 </td> <td align="left" width="2%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> 20,000 </td> <td align="left" width="2%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> 202,374 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> Total Operating Expenses </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> 265,024 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> 285,024 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> Other (Income) and Expense: </td> <td align="left" width="1%"> </td> <td align="left" width="10%"> </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="left" width="10%"> </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="left" width="10%"> </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Interest expense</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> 13,770 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> 50,264 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> 64,033 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Loss on derivative liability</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> - </td> <td align="left" width="2%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> 39,126 </td> <td align="left" width="2%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> 39,127 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Total other (income) expense</td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> 13,770 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> 89,390 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> 103,160 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> NET LOSS </td> <td align="left" width="1%"> </td> <td align="right" width="10%"> 278,794 </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="10%"> 89,390 </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="10%"> 388,184 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> NET LOSS PER COMMON SHARE </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="10%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="10%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="10%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Basic and diluted</td> <td align="left" width="1%"> </td> <td align="right" width="10%"> (0.04 </td> <td align="left" width="2%">)</td> <td align="left" width="1%"> </td> <td align="left" width="10%"> </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="10%"> (0.06 </td> <td align="left" width="2%">)</td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> WEIGHTED AVERAGE OUTSTANDING SHARES </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="10%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="10%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="10%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Basic and diluted</td> <td align="left" width="1%"> </td> <td align="right" width="10%"> 6,199,960 </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="left" width="10%"> </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="10%"> 6,199,960 </td> <td align="left" width="2%"> </td> </tr> </table>

82650 0 82650 182374 20000 202374 265024 0 285024 13770 50264 64033 0 39126 39127 13770 89390 103160 278794 89390 388184 -0.04 -0.06 6199960 6199960 <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" colspan="7" style="border-bottom: 1px solid rgb(0, 0, 0);" width="36%">Three Months Ended November 30, 2011</td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" width="10%">Previously</td> <td align="center" width="2%"> </td> <td align="center" width="1%"> </td> <td align="center" width="10%"> </td> <td align="center" width="2%"> </td> <td align="center" width="1%"> </td> <td align="center" width="10%"> </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%">Reported</td> <td align="center" width="2%"> </td> <td align="center" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%">Adjustments</td> <td align="center" width="2%"> </td> <td align="center" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="center" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%">As Restated</td> <td align="left" width="2%"> </td> </tr> <tr> <td> </td> <td width="1%"> </td> <td width="10%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="10%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="10%"> </td> <td width="2%"> </td> </tr> <tr> <td> </td> <td width="1%"> </td> <td width="10%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="10%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="10%"> </td> <td width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> Cash flows from operating activities: </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="10%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="10%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="10%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Net Loss</td> <td align="left" width="1%">$</td> <td align="right" width="10%">   (278,794 </td> <td align="left" width="2%">)</td> <td align="left" width="1%"> $</td> <td align="right" width="10%"> (89,390 </td> <td align="left" width="2%">)</td> <td align="left" width="1%"> $</td> <td align="right" width="10%"> (386,184 </td> <td align="left" width="2%">)</td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Adjustments to reconcile net loss to net cash provided by (used in)</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="10%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="10%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="10%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left">operating activities:</td> <td align="left" width="1%"> </td> <td align="left" width="10%"> </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="left" width="10%"> </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="left" width="10%"> </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Amortization of discount and interest expense</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> 12,404 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> 37,917 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> 50,321 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Loss on derivative liability</td> <td align="left" width="1%"> </td> <td align="right" width="10%"> - </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="10%"> 39,127 </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="10%"> 39,127 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Vesting of stock options</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> 28,806 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> 28,806 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Contributions to capital by related party</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%">20,000</td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%">20,000</td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Changes in operating assets and liabilities:</td> <td align="left" width="1%"> </td> <td align="left" width="10%"> </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="left" width="10%"> </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="left" width="10%"> </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Increase in prepaid expenses</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> 25,000 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> 25,000 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Increase in accounts payable and accrued expenses</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> 17,697 </td> <td align="left" width="2%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> 12,346 </td> <td align="left" width="2%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> 30,043 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Net cash used in operating activities</td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> (194,887 </td> <td align="left" bgcolor="#e6efff" width="2%">)</td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> (194,887 </td> <td align="left" bgcolor="#e6efff" width="2%">)</td> </tr> <tr> <td> </td> <td width="1%"> </td> <td width="10%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="10%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="10%"> </td> <td width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Cash flows used in investing activities:</td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Net cash used in investing activities</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> - </td> <td align="left" width="2%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> - </td> <td align="left" width="2%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> - </td> <td align="left" width="2%"> </td> </tr> <tr> <td bgcolor="#e6efff"> </td> <td bgcolor="#e6efff" width="1%"> </td> <td bgcolor="#e6efff" width="10%"> </td> <td bgcolor="#e6efff" width="2%"> </td> <td bgcolor="#e6efff" width="1%"> </td> <td bgcolor="#e6efff" width="10%"> </td> <td bgcolor="#e6efff" width="2%"> </td> <td bgcolor="#e6efff" width="1%"> </td> <td bgcolor="#e6efff" width="10%"> </td> <td bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Cash flows from financing activities:</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> - </td> <td align="left" width="2%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> - </td> <td align="left" width="2%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> - </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Net cash used in financing activities</td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr> <td> </td> <td width="1%"> </td> <td width="10%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="10%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="10%"> </td> <td width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Net decrease in cash and cash equivalents</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> (194,887 </td> <td align="left" bgcolor="#e6efff" width="2%">)</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> (194,887 </td> <td align="left" bgcolor="#e6efff" width="2%">)</td> </tr> <tr valign="top"> <td align="left">Cash and cash equivalents at the beginning of period</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> 231,877 </td> <td align="left" width="2%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> </td> <td align="left" width="2%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> 231,877 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Cash and cash equivalents at the end of period</td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> 36,990 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="10%"> 36,990 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> </table> -278794 -89390 -386184 12404 37917 50321 0 39127 39127 28806 0 28806 25000 0 25000 17697 12346 30043 -194887 0 -194887 0 0 0 0 0 0 0 0 0 0 0 0 -194887 0 -194887 231877 231877 36990 36990 20000 550000 0.40 1375000 0.60 5 220000 62432