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<p style="margin: 0pt"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">Sonora Resources Corp. (formerly
Nature’s Call Brands, Inc.) (the “Company” or “Sonora Resources”) was incorporated under the laws
of the State of Nevada on December 3, 2007 with a business plan to sell and distribute water treatment systems for residential
and commercial use. In September of 2010, the business of the Company was changed to the acquisition, exploration and development
of mineral resources, with emphasis on gold and silver. Efforts in the area of water treatment were then abandoned.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company is a mining exploration company
focused on the acquisition and exploration of prospective silver opportunities in Mexico. For this objective, the Company incorporated
a mexican subsidiary, Finder Plata SA de CV, on July 12, 2011. Our goal is to build our Company into a successful mineral exploration
and development company. During 2013 and 2014, the Company intends to produce silver and gold at our Corazon property and Liz project
through processing economical old dumps and tailings by VAT leaching with amonium tiosulphate on these properties.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company closed a series of mining
option agreements through the Company’s wholly owned subsidiary Finder Plata as described below. The Company intends to raise
capital from investors for development and execution of our business plan with this portfolio of mining properties.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">The Company has mining option
agreements in (i) the Los Amoles Property consisting of 1,630 hectares located in Sonora; (ii) the Jalisco Group of Properties,
consisting of mining claims totaling 5,240 hectares located in Jalisco; and (iii) the Ayones Group of Properties consisting of
numerous mining claims totaling 48 hectares in Jalisco. The Company has commenced an underground work program at the Los Amoles
property and completed a geologic report to define the potential vein structure and outcroppings and prepare for a planned drilling
program later in 2013.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">Also, the Company has five mining
concessions on 721 hectares surrounding the Ayones Group of Properties, called the Corazon Property. We have a letter of intent
with the Liz Property located in Ayutla, Jalisco State, Mexico. Sonora Resources is based in Guadalupe, Zacatecas, Mexico. We have
concluded phase one field work at the Corazon property and the Company intend to produce silver and gold at our Corazon and Liz
properties in 2013 and 2014.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">The Company has incurred a cumulative
net loss since inception on December 3, 2007 to November 30, 2012 of $2,197,000 and have no source of operating revenue. While
the Company’s management believes that it will be successful in our planned operating activities under the Company’s
business plan and capital raising activities, there can be no assurance that the Company will be successful in the mining development
and exploration business or the raising of sufficient capital such that the Company will generate adequate revenues to earn a profit
or sustain its operations.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">The accompanying consolidated
financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America,
which contemplates the Company’s continuation as a going concern. The Company has not established a source of revenues sufficient
to cover its operating costs, and as such, have incurred an operating loss since inception. Further, as of November 30, 2012, the
Company has working capital of $347,000. These and other factors raise doubt about our ability to continue as a going concern.
The accompanying consolidated financial statements do not include any adjustments or classifications that may result from the possible
inability of the Company to continue as a going concern.</p>
<p style="font: 8pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt"> </p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><i>Exploration Stage Enterprise</i></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Since the Company is in the exploration
stage of operation, the Company’s financial statements are prepared in accordance with the provisions of ASC 915 Development
Stage Enterprises, as it devotes substantially all of its efforts to acquiring and exploring mining interests that management believes
should eventually provide sufficient net profits to sustain the Company’s existence. Until such interests are engaged in
commercial production, the Company will continue to prepare its consolidated financial statements and related disclosures in accordance
with this standard.</p>
<p style="font: 8pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt"> </p>
<p style="margin: 0pt"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify"><i>Basis of Presentation</i></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">The accompanying financial statements
have been prepared in accordance with the accounting principles generally accepted in the United States.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify"><i>Principles of Consolidation</i></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">These consolidated financial statements
include our consolidated balance sheets, results of operations, changes in stockholders' equity and cash flows. All material intercompany
balances and transactions have been eliminated in the accompanying consolidated financial statements.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify"><i>Use of Estimate</i></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">The preparation of financial statements
in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect
the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amount of revenues and expenses during the period. Actual results may differ from those estimates.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify"><i>Cash and Cash Equivalents</i></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">The Company classifies highly
liquid temporary investments with an original maturity of three months or less when purchased as cash equivalents.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">The Company maintains cash balances
at various financial institutions. Balances at US banks are insured by the Federal Deposit Insurance Corporation up to $250,000.
Beginning December 31, 2010 and through December 31, 2012, all noninterest-bearing transaction accounts are fully insured, regardless
of the balance of the account, at all FDIC-insured institutions. In Mexico, the Company's cash balances are currently fully insured
by the Institute for the Protection of Bank Savings.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">The Company has not experienced
any losses in such accounts and believes it is not exposed to any significant risk for cash on deposit. As of November 30, 2012,
the Company had $35,776 in excess of $250,000.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt"><i>Foreign Currency Translation</i></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">The Company maintains its accounting
records in U.S. Dollars. The Company's Finder Plata records are maintained in Mexican Pesos. At the transaction date, each asset,
liability, revenue and expense involving foreign currencies is translated into U.S. dollars by the use of the exchange rate in
effect at that date. At the period end, monetary assets and liabilities involving foreign currencies are remeasured by using the
exchange rate in effect at that date. The resulting foreign exchange gains and losses are included in operations. The Company's
currency exposure is insignificant and immaterial and we do not use derivative instruments to reduce our potential exposure to
foreign currency risk.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify"><i>Mineral Properties</i></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Costs of acquiring mineral properties
are capitalized by project area upon purchase of the associated claims. Costs to maintain the mineral rights and leases and explore
are expensed as incurred.  When a property reaches the production stage, the related capitalized costs will be amortized,
using the units of production method on the basis of periodic estimates of ore reserves.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Mineral properties are periodically assessed
for impairment of value and any diminution in value.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt"><i>Fair Value of Financial Instruments</i></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Fair value is defined as the price that
would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market
for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy
contains three levels as follows:</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Level 1 -</i> Unadjusted quoted prices
that are available in active markets for the identical assets or liabilities at the measurement date.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Level 2 -</i> Other observable inputs
available at the measurement date, other than quoted prices included in Level 1, either directly or indirectly, including:</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 8pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 6%; text-align: justify; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif; color: black"><i>•</i></font></td>
<td style="width: 94%; text-align: justify; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif; color: black">Quoted prices for similar assets or liabilities in active markets;</font></td></tr>
<tr style="vertical-align: top">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif; color: black">•</font></td>
<td style="text-align: justify; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif; color: black">Quoted prices for identical or similar assets in nonactive markets;</font></td></tr>
<tr style="vertical-align: top">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif; color: black">•</font></td>
<td style="text-align: justify; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif; color: black">Inputs other than quoted prices that are observable for the asset or liability; and</font></td></tr>
<tr style="vertical-align: top">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif; color: black">•</font></td>
<td style="text-align: justify; line-height: 115%"><font style="font: 8pt Times New Roman, Times, Serif; color: black">Inputs that are derived principally from or corroborated by other observable market data.</font></td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Level 3 -</i> Unobservable inputs
that cannot be corroborated by observable market data and reflect the use of significant management judgment. These values are
generally determined using pricing models for which the assumptions utilize management’s estimates of market participant
assumptions.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Assets and Liabilities that are Measured
at Fair Value on a Recurring Basis.</i> The Company accounts for fair value measurements in accordance with ASC 820,<i> Fair Value
Measurements and Disclosures,</i> which defines fair value, establishes a framework for measurement and expands disclosure about
fair value measurement. The fair value hierarchy requires the use of observable market data when available. In instances in which
the inputs used to measure fair value fall into different levels of the fair value hierarchy, the fair value measurement has been
determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s
assessment of the significance of a particular item to the fair value measurement in its entirety requires judgment, including
the consideration of inputs specific to the asset or liability.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt"><i>Impairment of Long-lived Assets</i></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">Long-lived assets are reviewed
for impairment in accordance with FASB ASC 360, <i>Property, Plant, and Equipment</i>. Under FASB ASC 360, these assets are tested
for recoverability annually or whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable.
An impairment charge is recognized for the amount, if any, when the carrying value of the asset exceeds the fair value. As at November
30, 2012, no events or circumstances occurred for which an evaluation of the recoverability of long-lived assets was required.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify"><i>Asset Retirement Obligations</i></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">The Company applies ASC 410, <i>Accounting
for Asset Retirement Obligations </i>which requires that the fair value of a liability for an asset retirement obligation be recognized
in the period in which it is incurred. ASC 410 requires the Company to record a liability for the present value using a credit-adjusted
risk free interest rate, of the estimated site restoration costs with a corresponding increase to the carrying amount of the related
long-lived assets. The liability is accreted until it has been fully incurred and the asset is amortized over the life of the related
assets. Adjustments are made for changes resulting from the passage of time and changes to either the timing or amount of the original
present value estimate underlying the obligation will be made. As of November 30, 2012, the Company does not have any asset retirement
obligations.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify"><i>Comprehensive Loss</i></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">The Company applies ASC 220, <i>Comprehensive
Income</i>. ASC 220 establishes standards for the reporting and display of comprehensive income or loss, requiring its components
to be reported in a financial statement. For the years ended November 30, 2012 and 2011 our only component of comprehensive income
(loss) was foreign currency translation.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt"><i>Stock-Based Compensation</i></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">The Company adopted ASC 718, <i>Compensation
– Stock-Based Compensation</i>, to account for its stock options and similar equity instruments issued. Accordingly, compensation
costs attributable to stock options or similar equity instruments granted are measured at the fair value at the grant date, and
expensed over the expected vesting period. ASC 718 requires excess tax benefits be reported as a financing cash inflow rather than
as a reduction of taxes paid.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt"><i>Loss per Common Share</i></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">Basic loss per share is computed
by dividing the net loss attributable to the common stockholders by the weighted average number of shares of common stock outstanding
during the periods. Diluted loss per share is computed similar to basic loss per share except that the denominator is increased
to include the number of additional common shares that would have been outstanding if the potential common shares had been issued
and if the additional common shares were dilutive. As of November 30, 2012, there were options outstanding for the purchase of
1,400,000 common shares and warrants for the issuance of 1,000,000 shares of common stock which could potentially dilute future
earnings per share. As of November 30, 2011, there were options outstanding for the purchase of 1,400,000 common shares, 1,600,000
shares of common stock related to a convertible demand promissory note and warrants for the issuance of 1,000,000 shares of common
stock which could potentially dilute future earnings per share.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt"><i>Income Taxes</i></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">The Company accounts for income
taxes pursuant to FASB ASC 740, <i>Income Taxes</i>. Under FASB ASC 740-10-25, deferred tax assets and liabilities are determined
based on temporary differences between the bases of certain assets and liabilities for income tax and financial reporting purposes.
The deferred tax assets and liabilities are classified according to the financial statement classification of the assets and liabilities
generating the differences.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">The Company maintains a valuation
allowance with respect to deferred tax assets. The Company establishes a valuation allowance based upon the potential likelihood
of realizing the deferred tax asset and taking into consideration the Company's financial position and results of operations for
the current period. Future realization of the deferred tax benefit depends on the existence of sufficient taxable income within
the carryforward period under the federal tax laws.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">Changes in circumstances, such
as the Company generating taxable income, could cause a change in judgment about the realizability of the related deferred tax
asset. Any change in the valuation allowance will be included in income in the year of the change in estimate.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify"><i>New Accounting Pronouncements
</i></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt">Recent accounting pronouncements applicable to the
Company are summarized below.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On May 12, 2011, the FASB issued ASU
2011-04,<i> Fair Value Measurement,</i> which requires measurement uncertainty disclosure in the form of a sensitivity analysis
of unobservable inputs to reasonable alternative amounts for all Level 3 recurring fair value measurements. ASU 2011-04 became
effective for interim and annual periods beginning on or after December 15, 2011. The Company adopted this guidance in the third
quarter of Fiscal 2012. The adoption of this guidance requires additional disclosures, but did not have any impact on the Company’s
consolidated results of operations, financial position, or cash flows.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On June 16, 2011, the FASB issued ASU
2011-05,<i> Presentation of Comprehensive Income,</i> which revised the manner in which entities present comprehensive income in
their financial statements. ASU 2011-05 is effective for fiscal years beginning after December 15, 2011. The adoption of this pronouncement
did not have a significant impact on the consolidated financial statements.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In September 2011, the FASB issued ASU
2011-08,<i> Testing Goodwill for Impairment,</i> which simplified the manner in which entities test goodwill for impairment. After
assessment of certain qualitative factors, if it is determined to be more likely than not that the fair value of a reporting unit
is less than its carrying amount, entities must perform a quantitative analysis of the goodwill impairment test. Otherwise, the
quantitative test becomes optional. ASU 2011-08 is effective for fiscal years beginning after December 15, 2011 (our Fiscal 2013).
The Company does not believe that the adoption of this will have a significant impact on its consolidated financial statements.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">A variety of proposed or otherwise potential
accounting standards are currently under study by standard setting organizations and various regulatory agencies. Due to the tentative
and preliminary nature of those proposed standards, management has not determined whether implementation of such proposed standards
would be material to our consolidated financial statements. </p>
<p style="font: 8pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"> </p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt; font: 8pt Times New Roman, Times, Serif"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt"><b>Summary </b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Our President & CEO Juan Miguel Ríos
Gutiérrez holds an MBA in P.Eng., Mining and Metallurgical. He has worked for twenty years in management and on projects
at Peñoles, the largest mining operation in Mexico. Mr. Juan Miguel Ríos Gutiérrez was the fourth employee
at First Majestic and helped build that company from a junior mining exploration company on the TSXV and NYSE to a major global
silver producer. Mr. Gutierrez held the General Manager position at four of the First Majestic mining units in Mexico.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">Because of limited staff, the
Company relies on outside parties, including geologists, surveyors, laboratories, etc. in our business operations. The Company
has historical data on mining operations at the properties listed below. Mr. Gutiérrez has visited each property twice a
year, with each visit being approximately one week.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">All properties are accessible
by vehicles. There is currently no infrastructure, property and equipment, power, buildings or water on the properties. No equipment
or improvements exist on the properties. During the Company’s exploration stage and future exploration work on the mining
claims, the Company expects to use contractors and equipment and diamond drill machines that use diesel hydraulic sources and diesel
electric generators as a source of power. The Company expects to transport water from nearby communities in tanker trucks.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">The Company’s<font style="letter-spacing: -0.1pt">
</font>und<font style="letter-spacing: -0.05pt">e</font>rst<font style="letter-spacing: -0.05pt">a</font>ndi<font style="letter-spacing: 0.1pt">n</font>g<font style="letter-spacing: -0.15pt">
</font>is that<font style="letter-spacing: -0.05pt"> </font>sur<font style="letter-spacing: -0.1pt">f</font><font style="letter-spacing: 0.05pt">a</font><font style="letter-spacing: -0.05pt">c</font>e
<font style="letter-spacing: -0.05pt">e</font><font style="letter-spacing: 0.1pt">x</font>plor<font style="letter-spacing: -0.1pt">a</font>tion
<font style="letter-spacing: -0.05pt">ac</font>tivities <font style="letter-spacing: -0.05pt">w</font>h<font style="letter-spacing: -0.1pt">i</font><font style="letter-spacing: -0.05pt">c</font>h
h<font style="letter-spacing: -0.05pt">a</font>ve<font style="letter-spacing: 0.05pt"> </font>a<font style="letter-spacing: -0.05pt">
</font>v<font style="letter-spacing: -0.05pt">e</font><font style="letter-spacing: 0.15pt">r</font>y<font style="letter-spacing: -0.25pt">
</font>low<font style="letter-spacing: 0.1pt"> </font><font style="letter-spacing: -0.05pt">e</font>nvi<font style="letter-spacing: 0.05pt">r</font>onment<font style="letter-spacing: -0.05pt">a</font>l
impa<font style="letter-spacing: -0.1pt">c</font>t, such <font style="letter-spacing: -0.1pt">a</font>s d<font style="letter-spacing: -0.05pt">r</font>illin<font style="letter-spacing: -0.15pt">g</font>/samplin<font style="letter-spacing: -0.1pt">g</font>,
<font style="letter-spacing: -0.05pt">a</font>nd<font style="letter-spacing: 0.1pt"> </font><font style="letter-spacing: -0.05pt">c</font><font style="letter-spacing: 0.1pt">o</font>n<font style="letter-spacing: -0.05pt">f</font>o<font style="letter-spacing: -0.05pt">r</font>m
to the<font style="letter-spacing: 0.05pt"> </font><font style="letter-spacing: -0.05pt">NO</font>M<font style="letter-spacing: -0.05pt">-</font>120<font style="letter-spacing: 0.05pt">-</font>SEMARN<font style="letter-spacing: -0.05pt">A</font>T<font style="letter-spacing: -0.05pt">-</font>1997
<font style="letter-spacing: -0.05pt">(</font>Norma <font style="letter-spacing: -0.05pt">O</font>fi<font style="letter-spacing: -0.1pt">c</font>ial
Me<font style="letter-spacing: 0.05pt">x</font>ic<font style="letter-spacing: -0.1pt">a</font>na<font style="letter-spacing: -0.05pt">
</font>N<font style="letter-spacing: -0.05pt">O</font>M<font style="letter-spacing: -0.05pt">-</font>120<font style="letter-spacing: -0.05pt">-</font>S<font style="letter-spacing: 0.05pt">E</font>MARNAT,
1997 [1998<font style="letter-spacing: 0.05pt">]</font>)<font style="letter-spacing: -0.2pt"> </font>do not r<font style="letter-spacing: -0.1pt">e</font>quire<font style="letter-spacing: -0.1pt">
environmental </font>p<font style="letter-spacing: 0.05pt">e</font>rmits. The Company does not have any permits at this time. The
Company expects to acquire any permits, if any, are required on the Corazon and Liz projects related to the tailings projects.
Should a permit be required, this permit process requires approximately ninety days for NOM 120 and over 180 days for an environmental
impact study.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">This <font style="letter-spacing: 0.1pt">p</font>r<font style="letter-spacing: 0.05pt">o</font>p<font style="letter-spacing: -0.05pt">e</font>rty
does not have any known <font style="letter-spacing: -0.1pt">r</font><font style="letter-spacing: -0.05pt">e</font>s<font style="letter-spacing: -0.05pt">e</font>r<font style="letter-spacing: 0.05pt">v</font><font style="letter-spacing: -0.05pt">e</font>s
and<font style="letter-spacing: 0.1pt"> </font><font style="letter-spacing: -0.25pt">the Company’s</font><font style="letter-spacing: -0.05pt">
</font>p<font style="letter-spacing: -0.05pt">r</font>opos<font style="letter-spacing: -0.05pt">e</font>d<font style="letter-spacing: 0.1pt">
</font><font style="letter-spacing: -0.05pt">ac</font>tivities <font style="letter-spacing: -0.1pt">a</font>re<font style="letter-spacing: 0.05pt">
</font><font style="letter-spacing: -0.05pt">e</font><font style="letter-spacing: 0.1pt">x</font>plor<font style="letter-spacing: -0.1pt">a</font>to<font style="letter-spacing: 0.05pt">r</font>y<font style="letter-spacing: -0.25pt">
</font>in na<font style="letter-spacing: 0.1pt">t</font>u<font style="letter-spacing: -0.05pt">re</font>.The Company expects to
finance its plan through investors, First Majestic and cash flow from the Corazon and Liz properties discussed below.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Mineral exploration and mining in Mexico are
regulated by the Mining Law of 1992, which establishes that all minerals found in Mexican territory are owned by the Mexican nation,
and that private parties may exploit such minerals (except oil and nuclear fuel minerals) through mining licenses, or concessions,
granted by the federal government of Mexico. Under the terms of the original law, exploration concessions were granted for a period
of six years and exploitation concessions for a period of fifty years. There was no provision to extend the term of the exploration
concession but exploitation concessions were renewable once for an additional term of fifty years. On April 29, 2005 the Mexican
Congress published several amendments to the Mining Law of 1992. According to these amendments, a single concession type - the
‘mining concession’ - that gives the holder both exploration and exploitation rights subject to the payment of relevant
taxes, replaced old exploration and exploitation. Old exploration and exploitation concessions were automatically transformed into
mining concessions with a single term of 50 years from the date the concession was first registered at the Public Registry of Mines.
Accordingly, exploration concessions that were originally issued for a term of 6 years now have a term of 50 years from the date
the exploration concession was originally registered. Under the new amendments, the concession holder has all the rights previously
granted for an exploitation concession under the old law. Concessions may be granted to (or acquired by, since they are freely
transferable) Mexican individuals, local communities with collective ownership of the land known as ‘ejidos’ and companies
incorporated pursuant to Mexican law, with no foreign ownership restrictions for such companies. While the Constitution makes it
possible for foreign individuals to hold mining concessions, the Mining Law does not allow it. This means that foreigners wishing
to engage in mining in Mexico must establish a Mexican corporation for that purpose, or enter into joint ventures with Mexican
individuals or corporations.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Maintenance obligations which arise from a mining
concession, and which must be kept current to avoid its cancellation are the performance of assessment work, the payment of mining
taxes and the compliance with environmental laws. The Regulations of the Mining Law establish minimum amount of assessment work
that must be performed during the exploration in the case of exploration concessions, or exploration and/or exploitation work,
in the case of exploitation concessions.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><u>Year (Pesos per hectare)</u></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">1-2 years<strike> </strike>5.70</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">3-4 years<strike> </strike>8.52</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">5-6 years<strike> </strike>17.62</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">7-8 years<strike> </strike>35.45</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">9-10 years<strike> </strike>70.88</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">After 10 years<strike> </strike>124.74</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">(image omitted)</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">The Company expects to prepare
detailed project budgets for the Jalisco and Ayones Group of Properties during 2013, subject to the availability to cash.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt"><b>Mining Option Agreement – Los Amoles, Mexico
Property</b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On November 26, 2010, the Company entered
into the definitive Option Agreement with Yale Resources Ltd (“Yale Resources”), a company incorporated under the laws
of the Province of British Columbia, to acquire a 70% interest in its wholly owned Los Amoles property located 150 kilometers from
Villa Hidalgo, Sonora State, Mexico. The Los Amoles Property consists of Los Amoles 2 “Title 236113” and “Los
Amoles 3 Fracc. I” Title 238 claims covering a total of 1,630 hectares. Yale Resources subsidiary Minera Alta Vista S.A.
de C.V was granted a mining concession for the above properties. The property is accessible by truck. It is our understanding that
no government permits or reclamation requirements are expected during 2013. The Company is responsible for all maintenance obligation
and other expenses related to the properties. The maintenance obligations are paid on a semiannual basis. Expenditures were $62,616
for 2012.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The geology of the area of is composed
mainly of extrusive and intrusive rocks believed to be of Tertiary age. These rocks are then covered by alluvium and conglomerates.
In the State of Sonora and nearby Los Amoles there are several operating open pit, bulk tonnage mines in production; one of them
is La Caridad open pit copper porphyry complex owned by Southern Copper-Grupo Mexico. To date it is believed that several geological,
geochemical and geophysical surveys have been conducted on and around the Property area.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">(image omitted)</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">(image omitted)</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Option Agreement defines terms and conditions
where the Company can earn a 70% interest with the following payments and stock issuances before December 31, 2013:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse; font: 8pt Times New Roman, Times, Serif">
<tr style="font: 8pt Times New Roman, Times, Serif">
<td style="vertical-align: top; font: 8pt/115% Times New Roman, Times, Serif; text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">(a) </font></td>
<td colspan="2" style="padding-bottom: 10pt; font: 8pt/115% Times New Roman, Times, Serif; text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">making $50,000 payment to Yale Resources prior to December 1, 2013 as follows:</font></td></tr>
<tr style="font: 8pt Times New Roman, Times, Serif">
<td style="width: 5%; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: top; width: 5%; font: 8pt/115% Times New Roman, Times, Serif; text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">(i) </font></td>
<td style="padding-bottom: 10pt; font: 8pt/115% Times New Roman, Times, Serif; text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">$25,000 upon the signing of the Letter of Intent dated October 4, 2010 (paid); and</font></td></tr>
<tr style="font: 8pt Times New Roman, Times, Serif">
<td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: top; font: 8pt/115% Times New Roman, Times, Serif; text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">(ii) </font></td>
<td style="padding-bottom: 10pt; font: 8pt/115% Times New Roman, Times, Serif; text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">an additional $25,000 upon signing of the Option Agreement (paid)</font></td></tr>
<tr style="font: 8pt Times New Roman, Times, Serif">
<td style="vertical-align: top; font: 8pt/115% Times New Roman, Times, Serif; text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">(b) </font></td>
<td colspan="2" style="padding-bottom: 10pt; font: 8pt/115% Times New Roman, Times, Serif; text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">incurring or funding a total of $900,000 in expenditures on the Los Amoles Property prior to December 1, 2013 as follows:</font></td></tr>
<tr style="font: 8pt Times New Roman, Times, Serif">
<td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: top; font: 8pt/115% Times New Roman, Times, Serif; text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">(i) </font></td>
<td style="padding-bottom: 10pt; font: 8pt/115% Times New Roman, Times, Serif; text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">$200,000 on or before the first anniversary of the date of the Option Agreement ($100,000 of which are to be advanced with 6 months of the date of the Option Agreement). The Company incurred project expenses of $180,099 for the year ending November 30, 2011 and Yale Resources has accepted that an additional $30,000 will be spent by January 2012 (spent);</font></td></tr>
<tr style="font: 8pt Times New Roman, Times, Serif">
<td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: top; font: 8pt/115% Times New Roman, Times, Serif; text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">(ii) </font></td>
<td style="padding-bottom: 10pt; font: 8pt/115% Times New Roman, Times, Serif; text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">an additional $300,000 on or before the secondary anniversary of the date of Option Agreement; and</font></td></tr>
<tr style="font: 8pt Times New Roman, Times, Serif">
<td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: top; font: 8pt/115% Times New Roman, Times, Serif; text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">(iii) </font></td>
<td style="padding-bottom: 10pt; font: 8pt/115% Times New Roman, Times, Serif; text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">an additional $400,000 on or before the third anniversary of the date of Option Agreement;</font></td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">Pursuant to the Option Agreement,
Yale Resources has acted as an operator and agreed to expend these funds pursuant to an agreed budget, however, if the Option Agreement
is terminated by the Company prior to $100,000 of these expenditures being incurred, Yale will retain any unspent funds. Yale will
charge a management fee of 15% on all expenditures which will be considered as part of the above required expenditures funding.</p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="font: 8pt Times New Roman, Times, Serif">
<td style="vertical-align: top; text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">(c) </font></td>
<td colspan="2" style="padding-bottom: 10pt; text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">issuing shares of the Company to Yale totaling 1,000,000 shares prior to December 1, 2013 as follows:</font></td></tr>
<tr style="font: 8pt Times New Roman, Times, Serif">
<td style="vertical-align: top; text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"> </td>
<td colspan="2" style="text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"> </td></tr>
<tr style="font: 8pt Times New Roman, Times, Serif">
<td style="width: 5%; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: top; width: 5%; text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">(i) </font></td>
<td style="padding-bottom: 10pt; text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">200,000 shares on signing of the Option Agreement (issued);</font></td></tr>
<tr style="font: 8pt Times New Roman, Times, Serif">
<td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: top; text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">(ii) </font></td>
<td style="padding-bottom: 10pt; text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">an additional 200,000 shares on or before the six month anniversary of the date of the Option Agreement (issued);</font></td></tr>
<tr style="font: 8pt Times New Roman, Times, Serif">
<td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: top; text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">(iii) </font></td>
<td style="padding-bottom: 10pt; text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">an additional 200,000 shares on or before the first anniversary of the date of the Option Agreement (issued);</font></td></tr>
<tr style="font: 8pt Times New Roman, Times, Serif">
<td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: top; text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">(iv) </font></td>
<td style="padding-bottom: 10pt; text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">an additional 200,000 shares on or before the second anniversary of the date of the Option Agreement (issued); and</font></td></tr>
<tr style="font: 8pt Times New Roman, Times, Serif">
<td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: top; text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">(v) </font></td>
<td style="padding-bottom: 10pt; text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">an additional 200,000 shares on or before the third anniversary of the date Option Agreement.</font></td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">Pursuant to the Option Agreement,
Yale Resources has acted as an operator and agreed to expend these funds for exploration the Amoles property.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">The Company has commenced an underground
work program using the Yale geologists and completed a partial “geophisic IP” in the area, a geologic report by an
independent geologist to define the potential vein structure and outcroppings and prepare for a planned drilling program in 2013.
The Company expects to spend a total of $556,000 during 2013 to maintain and explore this property.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">(image omitted)</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The sampling work program involved independent
geologists collecting samples from outcrops, old dumps and old tailings. The samples were submitted for assaying to Inspectorate,
an accredited laboratory.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">The sacks of samples are delivered
to the preparation laboratory of Inspectorate. From this point onward, the external laboratory crushes and pulverizes the samples.
The pulverized pulp is placed in kraft sample bags and the un-pulverized portions are returned to the original sample bags. Batches
of the sample pulps are shipped by couriers to the Inspectorate Richmond, BC Canada laboratories "Pulverize pulp samples rejects"
are taken back to the project for storage. The sample rejects are thus available for re-testing when required. In Richmond, BC,
the sample pulps are analyzed by inductively coupled plasma for 30 elements. Gold is tested by fire assay and silver is tested
by atomic absorption spectrometry. Each method has a lower and upper calibration range for which the results are accurately determined.
The laboratories also perform a duplicate analysis on every twelfth sample, insuring that there is at least one duplicate run with
every batch.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">This <font style="letter-spacing: 0.1pt">p</font>r<font style="letter-spacing: 0.05pt">o</font>p<font style="letter-spacing: -0.05pt">e</font>rty
does not have any known <font style="letter-spacing: -0.1pt">r</font><font style="letter-spacing: -0.05pt">e</font>s<font style="letter-spacing: -0.05pt">e</font>r<font style="letter-spacing: 0.05pt">v</font><font style="letter-spacing: -0.05pt">e</font>s
and<font style="letter-spacing: 0.1pt"> </font><font style="letter-spacing: -0.25pt">the Company’s</font><font style="letter-spacing: -0.05pt">
</font>p<font style="letter-spacing: -0.05pt">r</font>opos<font style="letter-spacing: -0.05pt">e</font>d<font style="letter-spacing: 0.1pt">
</font><font style="letter-spacing: -0.05pt">ac</font>tivities <font style="letter-spacing: -0.1pt">a</font>re<font style="letter-spacing: 0.05pt">
</font><font style="letter-spacing: -0.05pt">e</font><font style="letter-spacing: 0.1pt">x</font>plor<font style="letter-spacing: -0.1pt">a</font>to<font style="letter-spacing: 0.05pt">r</font>y<font style="letter-spacing: -0.25pt">
</font>in na<font style="letter-spacing: 0.1pt">t</font>u<font style="letter-spacing: -0.05pt">re. </font>All costs related to
the Option Agreement have been recorded as exploration expenses.  As of November 30, 2012, the Company has not earned
its 70% interest and does not control the property.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Upon the fulfillment of the above conditions,
the Company would own an undivided 70% interest in the Los Amoles Property as tenants in common, with a 30% participating interest
to be retained by Yale Resources. Also, upon the acquisition of a 70% interest in the Los Amoles Property, the Company and Yale
agreed to bear the cost of further exploration and development in proportion to the respective interests in the Los Amoles Property
on a joint venture basis.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify"><b>Mining Option Agreement- Jalisco,
Mexico Property</b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">On April 15, 2011, the Company
entered into a mining option agreement with First Majestic Silver Corp. (NYSE:AG and TSX:FR, “First Majestic”) and
Minera El Pilon S.A. de C.V., a subsidiary of First Majestic, whereby the Company has been granted an option (the “Option”)
to acquire up to a 90% interest in the following certain mineral properties wholly owned by First Majestic located in the state
of Jalisco, Mexico (the “Property”).</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">(image omitted)</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The property is accessible by truck.
It is our understanding that no government permits or reclamation requirements are expected during 2013. First Majestic has paid
for all maintenance obligation and other expenses related to the properties. The maintenance obligations are paid on a semiannual
basis.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The geology of the area of the Property
lies at the southern part of the<b> </b>Sierra Madre Occidental province, which is the largest physiographic province in México.
This belt of rocks is 200 to 300 km wide, and extends for 1,200 km in a southeast direction parallel to the Gulf of California
from the US and Mexican frontier into central México. It forms a dissected plateau with maximum elevation in excess of 3,000
m. Lithological units within this area comprise a lower volcanic sequence approximately 1 km thick of andesitic composition and
of late Cretaceous to mid Tertiary age overlying folded Mesozoic or late Paleozoic strata. Local geology consists predominately
of Tertiary age felsic tuff and related rocks. Elsewhere in the immediate district there are localized but significant areas of
volcanic breccia, basalt and andesite also of Tertiary age. <font style="color: black">The ore deposits are considered as epitermal
type with characteristics of low to intermediate sulphidation (Au-Ag+Pb-Zn-Cu). </font>The mineralized structures occur as veins,
stockworks and some disseminated bodies with ore-shoot along their outcrops To date it is believed that several geological, geochemical
and geophysical surveys have been conducted on and around the property area.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">(image omitted)</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">(image omitted)</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">(image omitted)</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">In consideration for the Option,
the Company agreed to:</p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="font: 8pt Times New Roman, Times, Serif">
<td style="vertical-align: top; width: 5%; text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">(a) </font></td>
<td style="padding-bottom: 10pt; text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">issue an aggregate of 10,000,000 shares of common stock with a fair market value of $0.34 per common share to First Majestic upon execution of the agreement (issued);</font></td></tr>
<tr style="font: 8pt Times New Roman, Times, Serif">
<td style="vertical-align: top; text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">(b) </font></td>
<td style="padding-bottom: 10pt; text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">incur an aggregate of $3,000,000 over the first three years to earn a 50% interest in the Property (the “First Option”);</font></td></tr>
<tr style="font: 8pt Times New Roman, Times, Serif">
<td style="vertical-align: top; text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">(c) </font></td>
<td style="padding-bottom: 10pt; text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">upon the exercise of the First Option, the Company will have the sole and exclusive option (the “Second Option”) to acquire an additional 20% interest in and to the Property by incurring an additional $2,000,000 no later than the fifth anniversary of the Agreement; and</font></td></tr>
<tr style="font: 8pt Times New Roman, Times, Serif">
<td style="vertical-align: top; text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">(d) </font></td>
<td style="padding-bottom: 10pt; text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">upon the exercise of the Second Option, the Company will have the sole and exclusive option to acquire an additional 20% interest in and to the Property by completing a bankable feasibility study no later than the seventh anniversary of the Agreement.</font></td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">First Majestic will retain a 10%
free carried interest and a 2.375% net smelter return.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">The Company agreed to file a registration
statement with the Securities and Exchange Commission qualifying the shares and to maintain the registration statement effective
for a period of not less than two years. If a registration statement has not been filed and declared effective within twelve months
from the date of the Agreement or if the Company fails to maintain the registration statement effective for a period of two years,
it has agreed to issue an additional 2,000,000 shares to First Majestic. On April 30, 2012, the Company issued 2,000,000 shares
of restricted common stock to First Majestic which were valued at $0.20 per share or $400,000. A notice filing under Regulation
D was filed with the SEC on June 7, 2012 with regard to these stock issuances.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">Upon the fulfillment of the above
conditions, the Company would own an undivided 50% to 90% interest in the Jalisco Property as tenants in common, with a 50% to
10% participating interest to be retained by First Majestic.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">As of November 30, 2012, the Company
has not spent any funds on the properties. The Company expects to spend a total of $2,136,000 during 2013, $864,000 during 2014
and an additional $2,000,000 during 2015 to maintain and explore the properties.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">This <font style="letter-spacing: 0.1pt">p</font>r<font style="letter-spacing: 0.05pt">o</font>p<font style="letter-spacing: -0.05pt">e</font>rty
does not have any known <font style="letter-spacing: -0.1pt">r</font><font style="letter-spacing: -0.05pt">e</font>s<font style="letter-spacing: -0.05pt">e</font>r<font style="letter-spacing: 0.05pt">v</font><font style="letter-spacing: -0.05pt">e</font>s
and<font style="letter-spacing: 0.1pt"> </font><font style="letter-spacing: -0.25pt">the Company’s</font><font style="letter-spacing: -0.05pt">
</font>p<font style="letter-spacing: -0.05pt">r</font>opos<font style="letter-spacing: -0.05pt">e</font>d<font style="letter-spacing: 0.1pt">
</font><font style="letter-spacing: -0.05pt">ac</font>tivities <font style="letter-spacing: -0.1pt">a</font>re<font style="letter-spacing: 0.05pt">
</font><font style="letter-spacing: -0.05pt">e</font><font style="letter-spacing: 0.1pt">x</font>plor<font style="letter-spacing: -0.1pt">a</font>to<font style="letter-spacing: 0.05pt">r</font>y<font style="letter-spacing: -0.25pt">
</font>in na<font style="letter-spacing: 0.1pt">t</font>u<font style="letter-spacing: -0.05pt">re. </font>Any costs related to
the Agreement will be recorded as exploration expenses.  As of November 30, 2012, the Company has not earned its 50%
interest and does not control the property.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify"><b>Mining Option Agreement- Ayones,
Mexico Property</b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On August 10, 2011, the Company entered
into a Mining Option Agreement (“Grupo Agreement”) with IMMSA Grupo México. Under the terms of the Grupo Agreement,
they granted us an option to acquire a 100% interest in certain mining properties representing the Ayones property located 15 kilometers
from the municipality of Etzatlan, Jalisco State, Mexico. The Ayones Property consists of “Ayones” Title. 195743, surface
19.0932 hectares and<b><i> </i></b>“Ayones 4” Title. 184155 surface 28.7280 hectares. The property is accessible by
truck. It is our understanding that no government permits or reclamation requirements are expected during 2013. The Company is
responsible for all maintenance obligation and other expenses related to the properties. The maintenance obligations are paid on
a semiannual basis.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The geology of the area of the property
lies at the southern part of the<b> </b>Sierra Madre Occidental province, which is the largest physiographic province in México.
This belt of rocks is 200 to 300 km wide, and extends for 1,200 km in a southeast direction parallel to the Gulf of California
from the US and Mexican frontier into central México. It forms a dissected plateau with maximum elevation in excess of 3,000
m. Lithological units within this area comprise a lower volcanic sequence approximately 1 km thick of andesitic composition and
of late Cretaceous to mid Tertiary age overlying folded Mesozoic or late Paleozoic strata. Local geology consists predominately
of Tertiary age felsic tuff and related rocks. Elsewhere in the immediate district there are localized but significant areas of
volcanic breccia, basalt and andesite also of Tertiary age. <font style="color: black">The ore deposits are considered as epitermal
type with characteristics of low to intermediate sulphidation (Au-Ag+Pb-Zn-Cu). </font>The mineralized structures occur as veins,
stockworks and some disseminated bodies with ore-shoot along their outcrops. To date that several geological, mapping and sampling
of old workings and old ore shoots, diamond drill hole campaign and surveying have been conducted on and around the Property area
by Grupo Mexico in 1987-1988. Historic production on this property by the Amparo Mining company in the Mazata Mine yielded over
700,000 tons with grade over 3-5 g/ton gold and 500 g/t silver in ephitermal veins. The Mazata mine mineralization has been characterized
as deep epithermal or mesothermal and could have significant extent down dip and along strike.  Furthermore, there is
potential to develop a number of continuous high-grade veins forming a highly attractive mining silver and gold target. </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Ayones and Corazon Properties location.</b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">(image omitted)</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">Under the terms of the Grupo Agreement
between Sonora’s wholly owned Mexican subsidiary Finder Plata and Grupo Mexico subsidiary, Industrial Minera Mexico, S.A.
de C.V. (“Grupo Mexico”), Finder Plata has the right to purchase 100% of two mining concessions on 48 hectares, the
old La Mazata Mine, the data of past diamond drill programs, studies and maps as well as the assets located within the mine areas
in exchange for payments over three years. The Grupo Agreement requires a Net Smelter Royalty (“NSR”) payment of 2.0%
by Finder Plata with Finder Plata having a first option to purchase the NSR for $ 1 million.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">Under the terms of the Grupo Agreement,
Finder Plata is required to pay the following cash payments totaling $1 million to exercise the option:</p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="font: 8pt Times New Roman, Times, Serif">
<td style="vertical-align: top; width: 5%; text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">(a) </font></td>
<td style="padding-bottom: 10pt; text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">A payment of US $100,000 with the execution of the Grupo Agreement (paid);</font></td></tr>
<tr style="font: 8pt Times New Roman, Times, Serif">
<td style="vertical-align: top; text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">(b) </font></td>
<td style="padding-bottom: 10pt; text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">A payment of US $100,000 within six months of execution of the Grupo Agreement (paid);</font></td></tr>
<tr style="font: 8pt Times New Roman, Times, Serif">
<td style="vertical-align: top; text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">(c) </font></td>
<td style="padding-bottom: 10pt; text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">A payment of US $100,000 within twelve months of execution of the Grupo Agreement (paid);</font></td></tr>
<tr style="font: 8pt Times New Roman, Times, Serif">
<td style="vertical-align: top; text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">(d) </font></td>
<td style="padding-bottom: 10pt; text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">A payment of US $175,000 within eighteen months of execution of the Grupo Agreement;</font></td></tr>
<tr style="font: 8pt Times New Roman, Times, Serif">
<td style="vertical-align: top; text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">(e) </font></td>
<td style="padding-bottom: 10pt; text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">A payment of US $175,000 within twenty-four months of execution of the Grupo Agreement;</font></td></tr>
<tr style="font: 8pt Times New Roman, Times, Serif">
<td style="vertical-align: top; text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">(f) </font></td>
<td style="padding-bottom: 10pt; text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">A payment of US $175,000 within thirty months of execution of the Grupo Agreement; and,</font></td></tr>
<tr style="font: 8pt Times New Roman, Times, Serif">
<td style="vertical-align: top; text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">(g) </font></td>
<td style="padding-bottom: 10pt; text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">A payment of US $175,000 within thirty-six months of execution of the Grupo Agreement.</font></td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">In addition, Finder Plata is required
to spend a total of $1 million in exploration expenditures on the Ayones property as follows:</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">$200,000 within twelve months
of execution of the Grupo Agreement ($12,818 was spent); An additional $300,000 on or before the second anniversary of execution
of the Grupo Agreement; and An additional $500,000 on or before the third anniversary of execution of the Grupo Agreement.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">On August 2, 2012, the parties
signed an Additional Agreement extending the remaining $187,182 of the $200,000 of exploration expenditures due within twelve months
of execution of the Grupo Agreement to the second anniversary of the execution of the Grupo Agreement.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">Closing of the transactions contemplated
in the Grupo Agreement on or before the third anniversary of execution requires the parties to enter into a Definitive Agreement.
The Definitive Agreement would require Finder Plata to begin commercial production thirty months after the execution of the Definitive
Agreement. If commercial production is not started in the thirty month period, Finder Plata is required to pay 15% NSR over the
future capacity of the mine as established in a feasibility study completed by Finder Plata.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt">Upon the fulfillment of the above conditions, the Company
would own a undivided 100% interest in the Ayones properties. As of November 30, 2012, the Company has spent $12,818 on the properties
$200,000 within twelve months of execution of the Grupo Agreement ($12,818 was spent). The Company expects to spend a total of
$1,038,000 in 2013 and $850,000 in 2014 to maintain and explore the properties.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt">This <font style="letter-spacing: 0.1pt">p</font>r<font style="letter-spacing: 0.05pt">o</font>p<font style="letter-spacing: -0.05pt">e</font>rty
does not have any known <font style="letter-spacing: -0.1pt">r</font><font style="letter-spacing: -0.05pt">e</font>s<font style="letter-spacing: -0.05pt">e</font>r<font style="letter-spacing: 0.05pt">v</font><font style="letter-spacing: -0.05pt">e</font>s
and<font style="letter-spacing: 0.1pt"> </font><font style="letter-spacing: -0.25pt">the Company’s</font><font style="letter-spacing: -0.05pt">
</font>p<font style="letter-spacing: -0.05pt">r</font>opos<font style="letter-spacing: -0.05pt">e</font>d<font style="letter-spacing: 0.1pt">
</font><font style="letter-spacing: -0.05pt">ac</font>tivities <font style="letter-spacing: -0.1pt">a</font>re<font style="letter-spacing: 0.05pt">
</font><font style="letter-spacing: -0.05pt">e</font><font style="letter-spacing: 0.1pt">x</font>plor<font style="letter-spacing: -0.1pt">a</font>to<font style="letter-spacing: 0.05pt">r</font>y<font style="letter-spacing: -0.25pt">
</font>in na<font style="letter-spacing: 0.1pt">t</font>u<font style="letter-spacing: -0.05pt">re.</font></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt"><b>Mining Option Agreement- Corazon, Mexico Property</b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On September 5, 2011, the Company entered
into Mining Option Agreements (“Corazon Agreements”) with eight Mexican citizens. Under the terms of the Corazon Agreements,
the Company was granted an option to acquire a 100% interest in the following mining properties of the Corazon group of claims
located 15 kilometers from the municipality of Etzatlan, Jalisco State, Mexico. The mining properties are next to the Ayones properties
and contain silver and gold tailings and old dumps.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">(image omitted)</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The property is accessible by truck,
is located in the approximate geographic coordinates 20 53’ 29” N; 104 05’ 31” W and 15 km to the north
of the Jalisco Property. It is our understanding that no government permits or reclamation requirements are expected during 2013.
The Company is responsible for all maintenance obligation and other expenses related to the properties. The maintenance obligations
are paid on a semiannual basis. Expenditures were $12,818 in 2012.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The geology of the area en the property
lies at the southern part of the<b> </b>Sierra Madre Occidental province, which is the largest physiographic province in México.
This belt of rocks is 200 to 300 km wide, and extends for 1,200 km in a southeast direction parallel to the Gulf of California
from the US and Mexican frontier into central México. It forms a dissected plateau with maximum elevation in excess of 3,000
m. Lithological units within this area comprise a lower volcanic sequence approximately 1 km thick of andesitic composition and
of late Cretaceous to mid Tertiary age overlying folded Mesozoic or late Paleozoic strata. Local geology consists predominately
of Tertiary age felsic tuff and related rocks. Elsewhere in the immediate district there are localized but significant areas of
volcanic breccia, basalt and andesite also of Tertiary age. <font style="color: black">The ore deposits are considered as epitermal
type with characteristics of low to intermediate sulphidation (Au-Ag+Pb-Zn-Cu). </font>The mineralized structures occur as veins,
stockworks and some disseminated bodies with ore-shoot along their outcrops. To date it is believed that several geological surveys
have been conducted on and around the property area. The Corazon property is surrounding Ayones property where diamond drill hole
were made by Grupo Mexico in 1987-1988 and is believed that the orebodies has extension and continuity to the Corazon Property.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">Under the terms of the agreement
between Sonora's wholly owned Mexican subsidiary Finder Plata S.A. de C.V. (“Finder Plata”) and the eight Mexican Citizen
owner’s (“Corazon Owner’s”), Finder Plata has the right to purchase 96.7% now and the remaining 3.3 % upon
the receipt of a court order for five mining concessions on 721 hectares surrounding the old La Mazata Mine and Ayones claims and
prospect recently acquired by Finder Plata in the Mexican state of Jalisco on August 10, 2011.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">Under the terms of the option
agreement, to exercise the option, the Company is required to pay several cash installments totaling $800,000 as detailed below:</p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="font: 8pt Times New Roman, Times, Serif">
<td style="vertical-align: top; width: 5%; text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">(a) </font></td>
<td style="padding-bottom: 10pt; text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">A payment of $96,700 with the execution of the Corazon Agreements (paid) and an additional $ 3,300 within six months of execution of the Corazon Agreements for the remaining 3.3% (paid);</font></td></tr>
<tr style="font: 8pt Times New Roman, Times, Serif">
<td style="vertical-align: top; text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">(b) </font></td>
<td style="padding-bottom: 10pt; text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">A payment of an additional $55,000 within twelve months of execution of the Corazon Agreements (paid);</font></td></tr>
<tr style="font: 8pt Times New Roman, Times, Serif">
<td style="vertical-align: top; text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">(c) </font></td>
<td style="padding-bottom: 10pt; text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">A payment of an additional $55,000 within twenty four months of execution of the Corazon Agreements;</font></td></tr>
<tr style="font: 8pt Times New Roman, Times, Serif">
<td style="vertical-align: top; text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">(d) </font></td>
<td style="padding-bottom: 10pt; text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">A payment of an additional $55,000 within thirty six months of execution of the Corazon Agreements; and,</font></td></tr>
<tr style="font: 8pt Times New Roman, Times, Serif">
<td style="vertical-align: top; text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">(e) </font></td>
<td style="padding-bottom: 10pt; text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">A payment of an additional $535,000 within forty two months of execution of the Corazon Agreements.</font></td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">Upon the fulfillment of the above
conditions, the Company would own an undivided 100% interest in the Corazon Properties.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">During 2012, the Company commenced
a sampling work program using external geologists and surveyors to define the potential silver and gold tailings and prepare for
a planned production program in 2013. The Company expects to spend a total of $116,250 in 2013 and $535,000 during 2014 to produce
silver and gold at this property.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The sampling work program involved independent
geologists collecting samples from outcrops, old dumps and old tailings. The samples were submitted for assaying to either ALS
MINERALS Mexico (“ALS”) or SGS Mineral Services Laboratories Mexico (“SGS”). ALS and SGS are accredited laboratories.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">The sacks of samples are delivered
to the preparation laboratory of ALS or SGS. From this point onward, the external laboratory crushes and pulverizes the samples.
The pulverized pulp is placed in kraft sample bags and the un-pulverized portions are returned to the original sample bags. Batches
of the sample pulps are shipped by couriers to the Toronto or Vancouver Canada laboratories of ALS or SGS. "Pulverize pulp
samples rejects" are taken back to the project for storage. The sample rejects are thus available for re-testing when required.
In Toronto or Vancouver, the sample pulps are analyzed by inductively coupled plasma for 30 elements. Gold is tested by fire assay
and silver is tested by atomic absorption spectrometry. Each method has a lower and upper calibration range for which the results
are accurately determined. The laboratories also perform a duplicate analysis on every twelfth sample, insuring that there is at
least one duplicate run with every batch.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">This <font style="letter-spacing: 0.1pt">p</font>r<font style="letter-spacing: 0.05pt">o</font>p<font style="letter-spacing: -0.05pt">e</font>rty
does not have any known <font style="letter-spacing: -0.1pt">r</font><font style="letter-spacing: -0.05pt">e</font>s<font style="letter-spacing: -0.05pt">e</font>r<font style="letter-spacing: 0.05pt">v</font><font style="letter-spacing: -0.05pt">e</font>s
and<font style="letter-spacing: 0.1pt"> </font><font style="letter-spacing: -0.25pt">the Company’s</font><font style="letter-spacing: -0.05pt">
</font>p<font style="letter-spacing: -0.05pt">r</font>opos<font style="letter-spacing: -0.05pt">e</font>d<font style="letter-spacing: 0.1pt">
</font><font style="letter-spacing: -0.05pt">ac</font>tivities <font style="letter-spacing: -0.1pt">a</font>re<font style="letter-spacing: 0.05pt">
</font><font style="letter-spacing: -0.05pt">e</font><font style="letter-spacing: 0.1pt">x</font>plor<font style="letter-spacing: -0.1pt">a</font>to<font style="letter-spacing: 0.05pt">r</font>y<font style="letter-spacing: -0.25pt">
</font>in na<font style="letter-spacing: 0.1pt">t</font>u<font style="letter-spacing: -0.05pt">re. </font>All costs related to
the Corazon Agreement have been recorded as exploration expenses.  As of November 30, 2012, the Company has not earned
its 100% interest and does not control the properties.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">This <font style="letter-spacing: 0.1pt">p</font>r<font style="letter-spacing: 0.05pt">o</font>p<font style="letter-spacing: -0.05pt">e</font>rty
does not have any known <font style="letter-spacing: -0.1pt">r</font><font style="letter-spacing: -0.05pt">e</font>s<font style="letter-spacing: -0.05pt">e</font>r<font style="letter-spacing: 0.05pt">v</font><font style="letter-spacing: -0.05pt">e</font>s
and<font style="letter-spacing: 0.1pt"> </font><font style="letter-spacing: -0.25pt">the Company’s</font><font style="letter-spacing: -0.05pt">
</font>p<font style="letter-spacing: -0.05pt">r</font>opos<font style="letter-spacing: -0.05pt">e</font>d<font style="letter-spacing: 0.1pt">
</font><font style="letter-spacing: -0.05pt">ac</font>tivities <font style="letter-spacing: -0.1pt">a</font>re<font style="letter-spacing: 0.05pt">
</font><font style="letter-spacing: -0.05pt">e</font><font style="letter-spacing: 0.1pt">x</font>plor<font style="letter-spacing: -0.1pt">a</font>to<font style="letter-spacing: 0.05pt">r</font>y<font style="letter-spacing: -0.25pt">
</font>in na<font style="letter-spacing: 0.1pt">t</font>u<font style="letter-spacing: -0.05pt">re. </font>All costs related to
the Corazon Agreement have been recorded as exploration expenses.  As of November 30, 2012, the Company has not earned
its 100% interest and does not control the properties.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt"><b>Joint Venture and Benefits Agreement- Liz, Mexico
Property</b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On May 17, 2012, Finder Plata entered
into a Joint Venture and Benefits Agreement (“Liz Agreement”) with Mr. Ramiro Romero Aguirre, a Mexican citizen. Under
the terms of the Liz Agreement, Finder Plata was granted the rights to acquire, process on sight and sale the mineral products
obtained from the old dumps located on which are expected to contain silver and gold contents in Liz mining claim title 216028
and on surface of land owned by Mr. Romero. The Liz project located in the municipality of Ayutla, Jalisco State, Mexico. The mining
properties are next to the Jalisco properties and contain silver and gold in old dumps.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The property is accessible by truck,
is located in the approximate geographic coordinates 20 06’ 51.33” N; 104 33’ 53.34” W. It is our understanding
that no government permits or reclamation requirements are expected during 2013. The Company is not responsible for all maintenance
obligation and other expenses related to the properties. No maintenance obligations are paid on a semiannual basis.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">(image omitted)</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">The geology of the area en the
property lies at the southern part of the<b> </b>Sierra Madre Occidental province, which is the largest physiographic province
in México. This belt of rocks is 200 to 300 km wide, and extends for 1,200 km in a southeast direction parallel to the Gulf
of California from the US and Mexican frontier into central México. It forms a dissected plateau with maximum elevation
in excess of 3,000 m. Lithological units within this area comprise a lower volcanic sequence approximately 1 km thick of andesitic
composition and of late Cretaceous to mid Tertiary age overlying folded Mesozoic or late Paleozoic strata. Local geology consists
predominately of Tertiary age felsic tuff and related rocks. Elsewhere in the immediate district there are localized but significant
areas of volcanic breccia, basalt and andesite also of Tertiary age. <font style="color: black">The ore deposits are considered
as epitermal type with characteristics of low to intermediate sulphidation (Au-Ag+Pb-Zn-Cu). </font>The mineralized structures
occur as veins, stockworks and some disseminated bodies with ore-shoot along their outcrops To date it is believed that several
geological, geochemical and geophysical surveys have been conducted on and around the Property area by the Servicio Geologico Mexicano
(a Mexican government Department).</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">Finder Plata exercised the Liz
LOI as follows:</p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="font: 8pt Times New Roman, Times, Serif">
<td style="width: 5%; text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"> </td>
<td style="vertical-align: top; width: 5%; text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">i. </font></td>
<td style="padding-bottom: 10pt; text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">Pay $5,000 upon signing the LOI, including sixteen percent (16%) Mexican VAT tax (paid).</font></td></tr>
<tr style="font: 8pt Times New Roman, Times, Serif">
<td style="text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"> </td>
<td style="text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"> </td>
<td style="text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"> </td></tr>
<tr style="font: 8pt Times New Roman, Times, Serif">
<td style="text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"> </td>
<td style="vertical-align: top; text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">ii. </font></td>
<td style="padding-bottom: 10pt; text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">Pay $5,000 ninety days after signing the LOI and upon signing the Final Liz Agreement including sixteen percent (16%) Mexican VAT tax (paid).</font></td></tr>
<tr style="font: 8pt Times New Roman, Times, Serif">
<td style="text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"> </td>
<td style="text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"> </td>
<td style="text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"> </td></tr>
<tr style="font: 8pt Times New Roman, Times, Serif">
<td style="text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"> </td>
<td style="vertical-align: top; text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">iii. </font></td>
<td style="padding-bottom: 10pt; text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">After signing the final Liz agreement Finder Plata expects to make an estimated investment, of US$400,000 in capital expenditures to build the infrastructure, equipment, working capital, management and commissioning expenses to process the old dumps in site and marketing silver and gold content. All the capital expenditures, working capital, pre-operating, commissioning and during the process in commercial production of the old dumps are expected to be controlled by Finder Plata, well as the marketing of the silver and gold content.</font></td></tr>
<tr style="font: 8pt Times New Roman, Times, Serif">
<td style="text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"> </td>
<td style="text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"> </td>
<td style="text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"> </td></tr>
<tr style="font: 8pt Times New Roman, Times, Serif">
<td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: top; text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">iv. </font></td>
<td style="padding-bottom: 10pt; text-align: justify; font: 8pt/115% Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif">Finder Plata agreed to pay to Mr. Romero, after subtracting of the Net smelter return (“NSR”) of each batch of concentrate, precipitate or ore sold end received the final liquidation, deductions, selling costs and expenses involved in the operation, 40% of earnings before interest, taxes, depreciation and amortization (“EBITDA”) on a monthly basis using Mexican generally accepted accounting practices. </font></td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">Upon the fulfillment of the above
conditions, the Company has the right to acquire and explore old dumps with silver and gold contents in Liz mining property owned
by Mr. Romero.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">During 2012, the Company spent
$12,000 in 2012 and expects to spend a total of $450,000 in 2013 to produce silver and gold at this property in 2013 and 2014.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The sampling work program involved independent
geologists collecting samples from outcrops, old dumps and old tailings. The samples were submitted for assaying to either ALS
or SGS.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">The sacks of samples are delivered
to the preparation laboratory of ALS or SGS. From this point onward, the external laboratory crushes and pulverizes the samples.
The pulverized pulp is placed in kraft sample bags and the un-pulverized portions are returned to the original sample bags. Batches
of the sample pulps are shipped by couriers to the Toronto, or Vancouver Canada laboratories of ALS or SGS. "Pulverize pulp
samples rejects" are taken back to the project for storage. The sample rejects are thus available for re-testing when required.
In Toronto or Vancouver, the sample pulps are analyzed by inductively coupled plasma for 30 elements. Gold is tested by fire assay
and silver is tested by atomic absorption spectrometry. Each method has a lower and upper calibration range for which the results
are accurately determined. The laboratories also perform a duplicate analysis on every twelfth sample, insuring that there is at
least one duplicate run with every batch.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">This <font style="letter-spacing: 0.1pt">p</font>r<font style="letter-spacing: 0.05pt">o</font>p<font style="letter-spacing: -0.05pt">e</font>rty
does not have any known <font style="letter-spacing: -0.1pt">r</font><font style="letter-spacing: -0.05pt">e</font>s<font style="letter-spacing: -0.05pt">e</font>r<font style="letter-spacing: 0.05pt">v</font><font style="letter-spacing: -0.05pt">e</font>s
and<font style="letter-spacing: 0.1pt"> </font><font style="letter-spacing: -0.25pt">the Company’s</font><font style="letter-spacing: -0.05pt">
</font>p<font style="letter-spacing: -0.05pt">r</font>opos<font style="letter-spacing: -0.05pt">e</font>d<font style="letter-spacing: 0.1pt">
</font><font style="letter-spacing: -0.05pt">ac</font>tivities <font style="letter-spacing: -0.1pt">a</font>re<font style="letter-spacing: 0.05pt">
</font><font style="letter-spacing: -0.05pt">e</font><font style="letter-spacing: 0.1pt">x</font>plor<font style="letter-spacing: -0.1pt">a</font>to<font style="letter-spacing: 0.05pt">r</font>y<font style="letter-spacing: -0.25pt">
</font>in na<font style="letter-spacing: 0.1pt">t</font>u<font style="letter-spacing: -0.05pt">re. </font>All costs related to
the Liz Agreement have been recorded as exploration expenses.  As of November 30, 2012, the Company has not earned any
interest and does not control the property.</p>
<p style="font: 8pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"> </p>
<p style="margin: 0pt; font: 8pt Times New Roman, Times, Serif"></p>
<p style="margin: 0pt"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">On May 19, 2011 and September
27, 2011, the Company executed and delivered to Coventry Capital LLC (“Coventry”) Convertible Demand Promissory Notes
in the principal amount of $200,000 or $400,000 in total in favor of Holder with simple interest of 10% per annum payable in arrears.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">In January and February 2012,
the Company executed and delivered to Coventry Convertible Demand Promissory Notes totaling $205,000.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">On April 19, 2012, Coventry converted
$605,000 of Convertible Demand Promissory Notes plus accrued interest of $32,440 into 2,549,760 shares of restricted common stock
at $.25 per share. The Company recorded a beneficial conversion feature of $94,729 as a result of the conversion. The shares do
not have registration rights. A notice filing under Regulation D was filed with the SEC on June 7, 2012 with regard to these stock
issuances.</p>
<p style="font: 8pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt"> </p>
<p style="margin: 0pt"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">All of the following private placements of Company securities
were conducted under the exemption from registration as provided under Section 4(2) of the Securities Act of 1933 (and also qualified
for exemption under 4(5), formerly 4(6) of the Securities Act of 1933, except as noted below). All of the shares issued were issued
in private placements not involving a public offering, are considered to be "restricted stock" as defined in Rule 144
promulgated under the Securities Act of 1933 and stock certificates issued with respect thereto bear legends to that effect.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">On April 15, 2011, the Company issued an aggregate of 10,000,000
shares of restricted common stock to First Majestic upon execution of Option Agreement at the market price of $0.34 per share for
a total value of $3,400,000. Pursuant to the terms of such agreement, if the shares were not registered within one year, the Company
was required to issue an additional 2,000,000 shares of restricted common stock. The shares were not registered by April 15, 2012,
so the Company issued an additional 2,000,000 shares of restricted common stock to First Majestic (see below).</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">On May 26, 2011, the Company issued 200,000 shares to Yale
Resources, a non-accredited investor, of restricted common stock pursuant to the Option Agreement at a fair value of $0.65 per
share for a total value of $130,000. The shares do not have registration rights.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">During June 2011, the Company sold 1,000,000 Units to four
accredited investors under a Securities Purchase Agreement at a purchase price of $0.25 per Unit, or an aggregate price of $250,000.
Each Unit consists of one share of restricted common stock of the Company and one purchase warrant with an exercise price of $0.35
per share. The warrants expire in June 2014. The shares sold and related warrants do not have registration rights. These private
placements of Company securities were conducted under the Regulation S exemption from registration as provided under Section 5.10
of the Securities Act for non-US persons.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">On September 15, 2011, the Company issued 14,600 shares of
restricted common stock at in accordance with the Restricted Stock Award Agreement dated June 15, 2011 at $0.616 per share for
a total value of $9,000 to Mark Scott, our CFO, related to his June 15, 2011 Consulting Agreement. The shares do not have registration
rights.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">On November 18, 2011, the Company issued 200,000 shares of
restricted common stock to Yale Resources, a non-accredited investor, pursuant to an Option Agreement at the market price of $0.28
per share for a total value of $56,000. The shares do not have registration rights.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On January 16, 2012, the Company issued
33,237 shares of restricted common stock at in accordance with the Restricted Stock Award Agreement dated June 15, 2011 at $0.361
per share for a total value of $12,000 to Mark Scott, our CFO, related to his June 15, 2011 Consulting Agreement. The shares do
not have registration rights. A notice filing under Regulation D was filed with the SEC on January 24, 2012 with regard to this
stock issuance.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On April 19, 2012, Coventry converted
$605,000 of Convertible Demand Promissory Notes plus accrued interest of $32,440 into 2,549,760 shares of restricted common stock
at $.25 per share. The Company recorded a beneficial conversion feature of $94,729 as a result of the conversion. The shares do
not have registration rights. A notice filing under Regulation D was filed with the SEC on June 7, 2012 with regard to these stock
issuances.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On April 30, 2012, the Company issued
2,000,000 shares of restricted common stock to First Majestic which were valued at $0.20 per share or $400,000. The shares were
recorded as exploration expense. The shares do not have registration rights. A notice filing under Regulation D was filed with
the SEC on June 7, 2012 with regard to this stock issuance.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On April 30, 2012, the Company issued
3,700,000 shares of restricted common stock to five accredited investors valued at $0.20 per share for $740,000. The shares do
not have registration rights. A notice filing under Regulation D was filed with the SEC on June 7, 2012 with regard to this stock
issuance.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On April 30, 2012, the Company cancelled
13,500,000 shares of common stock returned by Robbie Manis, an existing shareholder.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On April 30, 2012, the Company issued
37,285 shares of restricted common stock at $0.282 per share for a total value of $10,500 related to Mr. Scott's June 15, 2011
Consulting Agreement. The shares do not have registration rights. A notice filing under Regulation D was filed with the SEC on
June 7, 2012 with regard to this stock issuance.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On November 16, 2012, the Company issued
200,000 shares to Yale Resources, a non-accredited investor, pursuant to the Mining Option Agreement at the market value of $0.08
per share for a total value of $16,000. The shares do not have registration rights.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">A summary of the warrants issued as of
November 30, 2012 was as follows:</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="6" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">November 30, 2012</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="3" style="line-height: 115%; font-weight: bold; text-align: center">Weighted</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center">Average</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center">Exercise</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">Shares</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">Price</td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 76%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 9%; line-height: 115%; text-align: right"> </td>
<td nowrap="nowrap" style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 9%; line-height: 115%; text-align: right"> </td>
<td nowrap="nowrap" style="width: 1%; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 115%">Outstanding at November 30, 2011</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">1,000,000</td>
<td nowrap="nowrap" style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%">$</td>
<td style="line-height: 115%; text-align: right">0.350</td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">Issued</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">-</td>
<td nowrap="nowrap" style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">-</td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 115%">Outstanding at November 30, 2012</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt double; line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt double; line-height: 115%; text-align: right">1,000,000</td>
<td nowrap="nowrap" style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt double; line-height: 115%">$</td>
<td style="border-bottom: black 1.5pt double; line-height: 115%; text-align: right">0.350</td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">Exercisable at end of period</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt double; line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt double; line-height: 115%; text-align: right">1,000,000</td>
<td nowrap="nowrap" style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">A summary of the status of the warrants outstanding as of
November 30, 2012 was as follows:</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="14" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">November 30, 2012</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center">Weighted</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center">Weighted</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center">Weighted</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center">Average</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center">Average</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center">Average</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center">Remaining</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center">Exercise</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center">Shares</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center">Exercise</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; font-weight: bold">Number of Warrants</td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">Life</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">Price</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">Exerciseable</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">Price</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 52%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%; text-align: right"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 9%; line-height: 115%; text-align: right"> </td>
<td nowrap="nowrap" style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%; text-align: right"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 9%; line-height: 115%; text-align: right"> </td>
<td nowrap="nowrap" style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%; text-align: right"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 9%; line-height: 115%; text-align: right"> </td>
<td nowrap="nowrap" style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%; text-align: right"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 9%; line-height: 115%; text-align: right"> </td>
<td nowrap="nowrap" style="width: 1%; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 115%">1,000,000</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">1.58</td>
<td nowrap="nowrap" style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%">$</td>
<td style="line-height: 115%; text-align: right">0.350</td>
<td nowrap="nowrap" style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">1,000,000</td>
<td nowrap="nowrap" style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%">$</td>
<td style="line-height: 115%; text-align: right">0.350</td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">The intrinsic value of the warrants outstanding at November
30, 2012 is $80,000.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">On December 21, 2010, the Company adopted its 2010 Stock Option
Plan pursuant to which it may grant stock options to acquire up to a total of 8,500,000 shares of its common stock. The Board of
Directors currently acts as the plan administrator of this plan. On January 21, 2011, 1,400,000 options were granted pursuant to
the plan with 400,000 such options granted to consultants with an exercise of $0.20 per share, vested over 2 years and mature on
January 19, 2014 and 1,000,000 such options granted to the new Chief Executive Officer of the Company with an exercise price of
$0.20 per share, vested over 5 years and mature on January 21, 2016. During the year ended November 30, 2012 and 2011, the Company
recorded stock based compensation of $17,053 and $167,446, respectively, in connection with the stock options vested during the
period.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">Effective December 1, 2012, the Company changed its estimates
of the vesting period of certain stock option awards. The vesting period previously averaged two years was increased to an average
of five years. The Company made these changes to better reflect the estimated periods during which these options will be expensed.
This change had the effect of reducing 2012 compensation expense by $82,000 and decreasing stockholders equity by the same amount.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">A summary of the changes in stock options for the period ended
November 30, 2012 is presented below:</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="6" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">Options Outstanding</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center">Weighted</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; text-align: center"> </td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center">Average</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1pt solid">
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Number of</b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Shares</b></p></td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1pt solid">
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Exercise</b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Price</b></p></td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 76%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%; text-align: right"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 9%; line-height: 115%; text-align: right"> </td>
<td nowrap="nowrap" style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%; text-align: right"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 9%; line-height: 115%; text-align: right"> </td>
<td nowrap="nowrap" style="width: 1%; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 115%">Balance, November 30, 2011</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">1,400,000</td>
<td nowrap="nowrap" style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%">$</td>
<td style="line-height: 115%; text-align: right">0.20</td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">Granted</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">0</td>
<td nowrap="nowrap" style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%">$</td>
<td style="line-height: 115%; text-align: right">0</td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 115%">Balance, November 30, 2012</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="border-bottom: black 1.5pt double; line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt double; line-height: 115%; text-align: right">1,400,000</td>
<td nowrap="nowrap" style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="border-bottom: black 1.5pt double; line-height: 115%">$</td>
<td style="border-bottom: black 1.5pt double; line-height: 115%; text-align: right">0.20</td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">The fair value of each option granted has been estimated as
of the date of the grant using the Black-Scholes option pricing model with the following assumptions:</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid">
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>November 30, </b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2012</b></p></td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="line-height: 115%; text-align: center"> </td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 88%; line-height: 115%">Expected volatility</td>
<td style="width: 1%; line-height: 115%; text-align: right"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 9%; line-height: 115%; text-align: right">167.15% - 185.32</td>
<td nowrap="nowrap" style="width: 1%; line-height: 115%">%</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">Risk-free interest rate</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">1.185% - 2.05</td>
<td nowrap="nowrap" style="line-height: 115%">%</td></tr>
</table>
<p style="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 115%">Expected life</td>
<td style="line-height: 115%; text-align: right"> </td>
<td colspan="2" style="line-height: 115%; text-align: right">3 – 5 years</td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">Dividend yield</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">0.0</td>
<td nowrap="nowrap" style="line-height: 115%">%</td></tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">A summary of weighted average fair value of stock options
granted during the period ended November 30, 2012 as follows:</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center">Weighted</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center">Weighted</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center">Average</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center">Average</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center">Exercise</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center">Fair</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; font-weight: bold">November 30, 2012</td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">Price</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">Value</td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="line-height: 115%"> </td>
<td nowrap="nowrap" style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="line-height: 115%"> </td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 115%">Exercise price is greater than market price at grant date:</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="border-bottom: black 1.5pt double; line-height: 115%">$</td>
<td style="border-bottom: black 1.5pt double; line-height: 115%; text-align: right">0.20</td>
<td nowrap="nowrap" style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="border-bottom: black 1.5pt double; line-height: 115%">$</td>
<td style="border-bottom: black 1.5pt double; line-height: 115%; text-align: right">0.15</td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">The Company has the following options outstanding and exercisable:</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="line-height: 115%; font-weight: bold">November 30, 2012</td>
<td style="line-height: 115%"> </td>
<td colspan="10" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">Options outstanding</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center">Weighted</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; text-align: center"> </td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center">Average</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center">Weighted</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; text-align: center"> </td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center">Remaining</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center">average</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; font-weight: bold">Range of exercise prices</td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1pt solid">
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Number</b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>of shares</b></p></td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1pt solid">
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>contractual</b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>life</b></p></td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1pt solid">
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>exercise</b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>price</b></p></td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td nowrap="nowrap" style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td nowrap="nowrap" style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 115%">$0.20</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="border-bottom: black 1.5pt double; line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt double; line-height: 115%; text-align: right">1,400,000</td>
<td nowrap="nowrap" style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td colspan="2" style="border-bottom: black 1.5pt double; line-height: 115%; text-align: right">2.55 years</td>
<td nowrap="nowrap" style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="border-bottom: black 1.5pt double; line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt double; line-height: 115%; text-align: right">0.20</td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">As at November 30, 2012, 675,000 stock options are exercisable.
There is no aggregate intrinsic value of the exercisable options as of November 30, 2012. At November 30, 2012, the total compensation
of $117,500 for unvested shares is to be recognized over the next 2.55 years.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company’s Mining Option Agreement
– Los Amoles, Mexico Property and Mining Option Agreement- Jalisco, Mexico Property are discussed in Note 3.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">There are no pending legal proceedings
against us that are expected to have a material adverse effect on our cash flows, financial condition or results of operations.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On January 21, 2011, the Company entered
into a consulting agreement with Juan Miguel Ríos Gutiérrez whereby Mr. Gutiérrez was appointed Chief Executive
Officer at $5,000 per month for a term of indefinite period unless terminated by either party with sixty days advance written notice
to the other party.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On January 18, 2011, the Company entered
into a Consulting Agreement (“Corcom Agreement”) with Corcom, Inc. (“Corcom”), pursuant to which Corcom
is to provide certain administrative and related services including, but not limited to, accounting, coordination of annual audits
and quarterly reviews, management and review of legal documentation and ensuring timely fulfillment of all regulatory filings.
As consideration for the performance of the consulting services under the agreement, we agreed to pay Corcom the sum of US$2,000
per month for the duration of the agreement, exclusive of any applicable sales tax. The agreement is for an indefinite period unless
terminated by either party with sixty days advance written notice to the other party. On July 15, 2011, the Corcom Agreement was
replaced by an identical Consulting Agreement with Jamco Capital Partners Inc.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On June 15, 2011, the Company entered
into a Consulting Agreement (the “Agreement”) with Mark E. Scott, whereby Mr. Scott will serve as Chief Financial Officer
of the Company. Concurrently with the Company’s entrance into the Agreement, the Company entered into a Restricted Stock
Award Agreement with Mr. Scott (the “RSA”). Pursuant to the Agreement and in connection with his service as Chief Financial
Officer of the Company, Mr. Scott will receive: (i) US $4,000 cash per month and (ii) shares of Company common stock equaling US
$3,000 per month calculated on a monthly basis, such shares to be vested and issued quarterly (the “Shares”). In accordance
with the RSA, the determination of the number of Shares issuable to Mr. Scott is determined by dividing US $3,000 by the average
bid and ask price of the Company's common stock as reported by Bloomberg beginning June 15, 2011 and on the last day of each following
month thereafter (each a "Determination Date" ). If a Determination Date falls on a date on which the Company's common
stock is not reported by Bloomberg, the Determination Date shall be the next reportable trading day.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On September 15, 2011, the Company issued
14,600 shares of restricted common stock at $0. 616 per share for a total value of $9,000 related to Mr. Scott's June 15, 2011
Consulting Agreement. On January 16, 2012, the Company issued 33,237 shares of restricted common stock at in accordance with the
Restricted Stock Award Agreement dated June 15, 2011 at $0.361 per share for a total value of $11,999 to Mark Scott, our CFO, related
to his June 15, 2011 Consulting Agreement. On April 30, 2012, the Company issued 37,285 shares of restricted common stock at $0.282
per share for a total value of $10,514 related to Mr. Scott's June 15, 2011 Consulting Agreement. The shares do not have registration
rights. A notice filing under Regulation D was filed with the SEC on June 7, 2012 with regard to this stock issuance.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">As of November 30, 2012, the Company
accrued compensation of $20,000 related to the Restricted Stock Award Agreement.</p>
<p style="margin: 0pt"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has incurred losses since
inception, which have generated net operating loss carryforwards. The net operating loss carryforwards arise from both United States
and Mexican sources.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">Pretax losses arising from domestic operations (United States)
were approximately $935,000 for the year ended November 30, 2012. Pretax losses arising from foreign operations (Mexico) were approximately
$233,000, for the year ended November 30, 2012.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">Pretax losses arising from domestic operations (United States)
were approximately $1,896,000 for the period of inceptions from December 3, 2007 to November 30, 2012. Pretax losses arising from
foreign operations (Mexico) were approximately $302,000, for the period of inceptions from December 3, 2007 to November 30, 2012.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">The Company has US net operating loss carryforwards of approximately
$1,896,000, which expire in 2019-2031 and Mexico net operating loss carryforwards of approximately $233,000 which expire in 2019-2031.
Because it is not more likely than not that sufficient tax earnings will be generated to utilize the net operating loss carryforwards,
a corresponding valuation allowance of approximately $1,042,000 and $408,000 was established as of November 30, 2012 and 2011 respectively.
Additionally, under the Tax Reform Act of 1986, the amounts of, and benefits from, net operating losses may be limited in certain
circumstances, including a change in control.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">Section 382 of the Internal Revenue Code generally imposes
an annual limitation on the amount of net operating loss carryforwards that may be used to offset taxable income when a corporation
has undergone significant changes in its stock ownership. There can be no assurance that the Company will be able to utilize any
net operating loss carryforwards in the future.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">For the year ended November 30, 2012, the Company’s
effective tax rate differs from the federal statutory rate principally due to net operating losses and warrants issued for services.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">The principal components of the Company’s deferred tax
assets at November 30, 2012and 2011are as follows:</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">2012</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">2011</td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 76%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%; text-align: right"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 9%; line-height: 115%; text-align: right"> </td>
<td nowrap="nowrap" style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%; text-align: right"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 9%; line-height: 115%; text-align: right"> </td>
<td nowrap="nowrap" style="width: 1%; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 115%">U.S. operations loss carry forward at statutory rate of 34%</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%">$</td>
<td style="line-height: 115%; text-align: right">971,633</td>
<td nowrap="nowrap" style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%">$</td>
<td style="line-height: 115%; text-align: right">400,483</td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">Non-U.S. operations loss carry forward at statutory rate of 30%</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">69,900</td>
<td nowrap="nowrap" style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">7,200</td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 115%">Total</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">1,041,533</td>
<td nowrap="nowrap" style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">407,683</td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">Less Valuation Allowance</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">(1,041,533</td>
<td nowrap="nowrap" style="line-height: 115%">)</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">(407,683</td>
<td nowrap="nowrap" style="line-height: 115%">)</td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 115%">Net Deferred Tax Assets</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">-</td>
<td nowrap="nowrap" style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">-</td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">Change in Valuation allowance</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%">$</td>
<td style="line-height: 115%; text-align: right">(1,041,533</td>
<td nowrap="nowrap" style="line-height: 115%">)</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%">$</td>
<td style="line-height: 115%; text-align: right">(407,683</td>
<td nowrap="nowrap" style="line-height: 115%">)</td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">A reconciliation of the United States Federal Statutory rate
to the Company’s effective tax rate for the year ended November 30, 2012 and 2011 is as follows:</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">2012</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">2011</td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 76%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%; text-align: right"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 9%; line-height: 115%; text-align: right"> </td>
<td nowrap="nowrap" style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%; text-align: right"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 9%; line-height: 115%; text-align: right"> </td>
<td nowrap="nowrap" style="width: 1%; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 115%">Federal Statutory Rate</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">-34.0</td>
<td nowrap="nowrap" style="line-height: 115%">%</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">-34.0</td>
<td nowrap="nowrap" style="line-height: 115%">%</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">Increase in Income Taxes Resulting from:</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td nowrap="nowrap" style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 115%; text-indent: 9pt">Change in Valuation allowance</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">34.0</td>
<td nowrap="nowrap" style="line-height: 115%">%</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">34.0</td>
<td nowrap="nowrap" style="line-height: 115%">%</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">Effective Tax Rate</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">0.0</td>
<td nowrap="nowrap" style="line-height: 115%">%</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">0.0</td>
<td nowrap="nowrap" style="line-height: 115%">%</td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">The Company has a Consumption Tax receivable in the amount
of $82,244 which is expected to be refunded during 2013.</p>
<p style="margin: 0pt"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">The Company evaluates subsequent events, for the purpose of
adjustment or disclosure, up through the date the financial statements are available.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Basis of Presentation</i></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">The accompanying financial statements have been prepared in
accordance with the accounting principles generally accepted in the United States.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><i>Principles of Consolidation</i></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">These consolidated financial statements include our consolidated
balance sheets, results of operations, changes in stockholders' equity and cash flows. All material intercompany balances and transactions
have been eliminated in the accompanying consolidated financial statements.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Use of Estimate</i></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The preparation of financial statements
in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect
the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amount of revenues and expenses during the period. Actual results may differ from those estimates.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Cash and Cash Equivalents</i></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company classifies highly liquid
temporary investments with an original maturity of three months or less when purchased as cash equivalents.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company maintains cash balances at
various financial institutions. Balances at US banks are insured by the Federal Deposit Insurance Corporation up to $250,000. Beginning
December 31, 2010 and through December 31, 2012, all noninterest-bearing transaction accounts are fully insured, regardless of
the balance of the account, at all FDIC-insured institutions. In Mexico, the Company's cash balances are currently fully insured
by the Institute for the Protection of Bank Savings.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has not experienced any losses
in such accounts and believes it is not exposed to any significant risk for cash on deposit. As of November 30, 2012, the Company
had $35,776 in excess of $250,000.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Foreign Currency Translation</i></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company maintains its accounting
records in U.S. Dollars. The Company's Finder Plata records are maintained in Mexican Pesos. At the transaction date, each asset,
liability, revenue and expense involving foreign currencies is translated into U.S. dollars by the use of the exchange rate in
effect at that date. At the period end, monetary assets and liabilities involving foreign currencies are remeasured by using the
exchange rate in effect at that date. The resulting foreign exchange gains and losses are included in operations. The Company's
currency exposure is insignificant and immaterial and we do not use derivative instruments to reduce our potential exposure to
foreign currency risk.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">Fair value is defined as the price that would be received
to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or
liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy contains three
levels as follows:</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><i>Level 1 -</i> Unadjusted quoted prices that are available
in active markets for the identical assets or liabilities at the measurement date.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><i>Level 2 -</i> Other observable inputs available at the
measurement date, other than quoted prices included in Level 1, either directly or indirectly, including:</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 3%; line-height: 115%; font-style: italic; text-align: center">●</td>
<td style="width: 97%; line-height: 115%">Quoted prices for similar assets or liabilities in active markets;</td></tr>
<tr style="vertical-align: top">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: top">
<td style="line-height: 115%; text-align: center">●</td>
<td style="line-height: 115%">Quoted prices for identical or similar assets in nonactive markets;</td></tr>
<tr style="vertical-align: top">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: top">
<td style="line-height: 115%; text-align: center">●</td>
<td style="line-height: 115%">Inputs other than quoted prices that are observable for the asset or liability; and</td></tr>
<tr style="vertical-align: top">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: top">
<td style="line-height: 115%; text-align: center">●</td>
<td style="line-height: 115%">Inputs that are derived principally from or corroborated by other observable market data.</td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><i>Level 3 -</i> Unobservable inputs that cannot be corroborated
by observable market data and reflect the use of significant management judgment. These values are generally determined using pricing
models for which the assumptions utilize management’s estimates of market participant assumptions.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><i>Assets and Liabilities that are Measured at Fair Value
on a Recurring Basis.</i> The Company accounts for fair value measurements in accordance with ASC 820,<i> Fair Value Measurements
and Disclosures,</i> which defines fair value, establishes a framework for measurement and expands disclosure about fair value
measurement. The fair value hierarchy requires the use of observable market data when available. In instances in which the inputs
used to measure fair value fall into different levels of the fair value hierarchy, the fair value measurement has been determined
based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment
of the significance of a particular item to the fair value measurement in its entirety requires judgment, including the consideration
of inputs specific to the asset or liability.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><i>Impairment of Long-lived Assets</i></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">Long-lived assets are reviewed for impairment in
accordance with FASB ASC 360, <i>Property, Plant, and Equipment</i>. Under FASB ASC 360, these assets are tested for
recoverability annually or whenever events or changes in circumstances indicate that their carrying amounts may not be
recoverable. An impairment charge is recognized for the amount, if any, when the carrying value of the asset exceeds the fair
value. As at November 30, 2012, no events or circumstances occurred for which an evaluation of the recoverability of long-lived
assets was required.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Asset Retirement Obligations</i></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company applies ASC 410, <i>Accounting
for Asset Retirement Obligations </i>which requires that the fair value of a liability for an asset retirement obligation be recognized
in the period in which it is incurred. ASC 410 requires the Company to record a liability for the present value using a credit-adjusted
risk free interest rate, of the estimated site restoration costs with a corresponding increase to the carrying amount of the related
long-lived assets. The liability is accreted until it has been fully incurred and the asset is amortized over the life of the related
assets. Adjustments are made for changes resulting from the passage of time and changes to either the timing or amount of the original
present value estimate underlying the obligation will be made. As of November 30, 2012, the Company does not have any asset retirement
obligations.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Comprehensive Loss</i></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company applies ASC 220, <i>Comprehensive
Income</i>. ASC 220 establishes standards for the reporting and display of comprehensive income or loss, requiring its components
to be reported in a financial statement. For the years ended November 30, 2012 and 2011 our only component of comprehensive income
(loss) was foreign currency translation.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Stock-Based Compensation</i></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company adopted ASC 718, <i>Compensation
– Stock-Based Compensation</i>, to account for its stock options and similar equity instruments issued. Accordingly, compensation
costs attributable to stock options or similar equity instruments granted are measured at the fair value at the grant date, and
expensed over the expected vesting period. ASC 718 requires excess tax benefits be reported as a financing cash inflow rather than
as a reduction of taxes paid.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Loss per Common Share</i></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Basic loss per share is computed by dividing
the net loss attributable to the common stockholders by the weighted average number of shares of common stock outstanding during
the periods. Diluted loss per share is computed similar to basic loss per share except that the denominator is increased to include
the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the
additional common shares were dilutive. As of November 30, 2012, there were options outstanding for the purchase of 1,400,000 common
shares and warrants for the issuance of 1,000,000 shares of common stock which could potentially dilute future earnings per share.
As of November 30, 2011, there were options outstanding for the purchase of 1,400,000 common shares, 1,600,000 shares of common
stock related to a convertible demand promissory note and warrants for the issuance of 1,000,000 shares of common stock which could
potentially dilute future earnings per share.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Income Taxes</i></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company accounts for income taxes
pursuant to FASB ASC 740, <i>Income Taxes</i>. Under FASB ASC 740-10-25, deferred tax assets and liabilities are determined based
on temporary differences between the bases of certain assets and liabilities for income tax and financial reporting purposes. The
deferred tax assets and liabilities are classified according to the financial statement classification of the assets and liabilities
generating the differences.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company maintains a valuation allowance
with respect to deferred tax assets. The Company establishes a valuation allowance based upon the potential likelihood of realizing
the deferred tax asset and taking into consideration the Company's financial position and results of operations for the current
period. Future realization of the deferred tax benefit depends on the existence of sufficient taxable income within the carryforward
period under the federal tax laws.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">Changes in circumstances, such as the Company generating taxable
income, could cause a change in judgment about the realizability of the related deferred tax asset. Any change in the valuation
allowance will be included in income in the year of the change in estimate.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><i>New Accounting Pronouncements</i></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">Recent accounting pronouncements applicable to the Company
are summarized below.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">On May 12, 2011, the FASB issued ASU 2011-04,<i> Fair Value
Measurement,</i> which requires measurement uncertainty disclosure in the form of a sensitivity analysis of unobservable inputs
to reasonable alternative amounts for all Level 3 recurring fair value measurements. ASU 2011-04 became effective for interim and
annual periods beginning on or after December 15, 2011. The Company adopted this guidance in the third quarter of Fiscal 2012.
The adoption of this guidance requires additional disclosures, but did not have any impact on the Company’s consolidated
results of operations, financial position, or cash flows.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">On June 16, 2011, the FASB issued ASU 2011-05,<i> Presentation
of Comprehensive Income,</i> which revised the manner in which entities present comprehensive income in their financial statements.
ASU 2011-05 is effective for fiscal years beginning after December 15, 2011. The adoption of this pronouncement did not have a
significant impact on the consolidated financial statements.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">In September 2011, the FASB issued ASU 2011-08,<i> Testing
Goodwill for Impairment,</i> which simplified the manner in which entities test goodwill for impairment. After assessment of certain
qualitative factors, if it is determined to be more likely than not that the fair value of a reporting unit is less than its carrying
amount, entities must perform a quantitative analysis of the goodwill impairment test. Otherwise, the quantitative test becomes
optional. ASU 2011-08 is effective for fiscal years beginning after December 15, 2011 (our Fiscal 2013). The Company does not believe
that the adoption of this will have a significant impact on its consolidated financial statements.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">A variety of proposed or otherwise potential accounting standards
are currently under study by standard setting organizations and various regulatory agencies. Due to the tentative and preliminary
nature of those proposed standards, management has not determined whether implementation of such proposed standards would be material
to our consolidated financial statements. </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="6" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">November 30, 2012</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="3" style="line-height: 115%; font-weight: bold; text-align: center">Weighted</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center">Average</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center">Exercise</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">Shares</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">Price</td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 76%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 9%; line-height: 115%; text-align: right"> </td>
<td nowrap="nowrap" style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 9%; line-height: 115%; text-align: right"> </td>
<td nowrap="nowrap" style="width: 1%; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 115%">Outstanding at November 30, 2011</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">1,000,000</td>
<td nowrap="nowrap" style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%">$</td>
<td style="line-height: 115%; text-align: right">0.350</td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">Issued</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">-</td>
<td nowrap="nowrap" style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">-</td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 115%">Outstanding at November 30, 2012</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt double; line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt double; line-height: 115%; text-align: right">1,000,000</td>
<td nowrap="nowrap" style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt double; line-height: 115%">$</td>
<td style="border-bottom: black 1.5pt double; line-height: 115%; text-align: right">0.350</td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">Exercisable at end of period</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt double; line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt double; line-height: 115%; text-align: right">1,000,000</td>
<td nowrap="nowrap" style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="14" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">November 30, 2012</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center">Weighted</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center">Weighted</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center">Weighted</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center">Average</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center">Average</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center">Average</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center">Remaining</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center">Exercise</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center">Shares</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center">Exercise</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; font-weight: bold">Number of Warrants</td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">Life</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">Price</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">Exerciseable</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">Price</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 52%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%; text-align: right"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 9%; line-height: 115%; text-align: right"> </td>
<td nowrap="nowrap" style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%; text-align: right"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 9%; line-height: 115%; text-align: right"> </td>
<td nowrap="nowrap" style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%; text-align: right"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 9%; line-height: 115%; text-align: right"> </td>
<td nowrap="nowrap" style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%; text-align: right"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 9%; line-height: 115%; text-align: right"> </td>
<td nowrap="nowrap" style="width: 1%; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 115%">1,000,000</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">1.58</td>
<td nowrap="nowrap" style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%">$</td>
<td style="line-height: 115%; text-align: right">0.350</td>
<td nowrap="nowrap" style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">1,000,000</td>
<td nowrap="nowrap" style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%">$</td>
<td style="line-height: 115%; text-align: right">0.350</td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="6" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">Options Outstanding</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center">Weighted</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; text-align: center"> </td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center">Average</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1pt solid">
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Number of</b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Shares</b></p></td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1pt solid">
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Exercise</b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Price</b></p></td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 76%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%; text-align: right"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 9%; line-height: 115%; text-align: right"> </td>
<td nowrap="nowrap" style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%; text-align: right"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 9%; line-height: 115%; text-align: right"> </td>
<td nowrap="nowrap" style="width: 1%; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 115%">Balance, November 30, 2011</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">1,400,000</td>
<td nowrap="nowrap" style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%">$</td>
<td style="line-height: 115%; text-align: right">0.20</td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">Granted</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">0</td>
<td nowrap="nowrap" style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%">$</td>
<td style="line-height: 115%; text-align: right">0</td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 115%">Balance, November 30, 2012</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="border-bottom: black 1.5pt double; line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt double; line-height: 115%; text-align: right">1,400,000</td>
<td nowrap="nowrap" style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="border-bottom: black 1.5pt double; line-height: 115%">$</td>
<td style="border-bottom: black 1.5pt double; line-height: 115%; text-align: right">0.20</td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
</table>
<p style="margin: 0pt"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid">
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>November 30, </b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2012</b></p></td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="line-height: 115%; text-align: center"> </td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 88%; line-height: 115%">Expected volatility</td>
<td style="width: 1%; line-height: 115%; text-align: right"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 9%; line-height: 115%; text-align: right">167.15% - 185.32</td>
<td nowrap="nowrap" style="width: 1%; line-height: 115%">%</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">Risk-free interest rate</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">1.185% - 2.05</td>
<td nowrap="nowrap" style="line-height: 115%">%</td></tr>
</table>
<p style="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0"></p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 115%">Expected life</td>
<td style="line-height: 115%; text-align: right"> </td>
<td colspan="2" style="line-height: 115%; text-align: right">3 – 5 years</td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 88%; line-height: 115%">Dividend yield</td>
<td style="width: 1%; line-height: 115%; text-align: right"> </td>
<td style="width: 1%; border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="width: 9%; border-bottom: black 1pt solid; line-height: 115%; text-align: right">0.0</td>
<td nowrap="nowrap" style="width: 1%; line-height: 115%">%</td></tr>
</table>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center">Weighted</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center">Weighted</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center">Average</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center">Average</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center">Exercise</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center">Fair</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; font-weight: bold">November 30, 2012</td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">Price</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">Value</td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="line-height: 115%"> </td>
<td nowrap="nowrap" style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="line-height: 115%"> </td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 76%; line-height: 115%">Exercise price is greater than market price at grant date:</td>
<td style="width: 1%; line-height: 115%; text-align: right"> </td>
<td style="width: 1%; border-bottom: black 1.5pt double; line-height: 115%">$</td>
<td style="width: 9%; border-bottom: black 1.5pt double; line-height: 115%; text-align: right">0.20</td>
<td nowrap="nowrap" style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%; text-align: right"> </td>
<td style="width: 1%; border-bottom: black 1.5pt double; line-height: 115%">$</td>
<td style="width: 9%; border-bottom: black 1.5pt double; line-height: 115%; text-align: right">0.15</td>
<td nowrap="nowrap" style="width: 1%; line-height: 115%"> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="line-height: 115%; font-weight: bold">November 30, 2012</td>
<td style="line-height: 115%"> </td>
<td colspan="10" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">Options outstanding</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center">Weighted</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; text-align: center"> </td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center">Average</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center">Weighted</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; text-align: center"> </td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center">Remaining</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: center">average</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; font-weight: bold">Range of exercise prices</td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1pt solid">
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Number</b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>of shares</b></p></td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1pt solid">
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>contractual</b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>life</b></p></td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1pt solid">
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>exercise</b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>price</b></p></td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 64%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 9%; line-height: 115%; text-align: right"> </td>
<td nowrap="nowrap" style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 9%; line-height: 115%; text-align: right"> </td>
<td nowrap="nowrap" style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 9%; line-height: 115%; text-align: right"> </td>
<td nowrap="nowrap" style="width: 1%; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 115%">$0.20</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="border-bottom: black 1.5pt double; line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt double; line-height: 115%; text-align: right">1,400,000</td>
<td nowrap="nowrap" style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td colspan="2" style="border-bottom: black 1.5pt double; line-height: 115%; text-align: right">2.55 years</td>
<td nowrap="nowrap" style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="border-bottom: black 1.5pt double; line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt double; line-height: 115%; text-align: right">0.20</td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">2012</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">2011</td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 76%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%; text-align: right"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 9%; line-height: 115%; text-align: right"> </td>
<td nowrap="nowrap" style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%; text-align: right"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 9%; line-height: 115%; text-align: right"> </td>
<td nowrap="nowrap" style="width: 1%; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 115%">U.S. operations loss carry forward at statutory rate of 34%</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%">$</td>
<td style="line-height: 115%; text-align: right">971,633</td>
<td nowrap="nowrap" style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%">$</td>
<td style="line-height: 115%; text-align: right">400,483</td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">Non-U.S. operations loss carry forward at statutory rate of 30%</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">69,900</td>
<td nowrap="nowrap" style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">7,200</td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 115%">Total</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">1,041,533</td>
<td nowrap="nowrap" style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">407,683</td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">Less Valuation Allowance</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">(1,041,533</td>
<td nowrap="nowrap" style="line-height: 115%">)</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">(407,683</td>
<td nowrap="nowrap" style="line-height: 115%">)</td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 115%">Net Deferred Tax Assets</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">-</td>
<td nowrap="nowrap" style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">-</td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">Change in Valuation allowance</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%">$</td>
<td style="line-height: 115%; text-align: right">(1,041,533</td>
<td nowrap="nowrap" style="line-height: 115%">)</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%">$</td>
<td style="line-height: 115%; text-align: right">(407,683</td>
<td nowrap="nowrap" style="line-height: 115%">)</td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">2012</td>
<td nowrap="nowrap" style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">2011</td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 76%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%; text-align: right"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 9%; line-height: 115%; text-align: right"> </td>
<td nowrap="nowrap" style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%; text-align: right"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 9%; line-height: 115%; text-align: right"> </td>
<td nowrap="nowrap" style="width: 1%; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 115%">Federal Statutory Rate</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">-34.0</td>
<td nowrap="nowrap" style="line-height: 115%">%</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">-34.0</td>
<td nowrap="nowrap" style="line-height: 115%">%</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">Increase in Income Taxes Resulting from:</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td nowrap="nowrap" style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td nowrap="nowrap" style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 115%; text-indent: 9pt">Change in Valuation allowance</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">34.0</td>
<td nowrap="nowrap" style="line-height: 115%">%</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">34.0</td>
<td nowrap="nowrap" style="line-height: 115%">%</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">Effective Tax Rate</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">0.0</td>
<td nowrap="nowrap" style="line-height: 115%">%</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">0.0</td>
<td nowrap="nowrap" style="line-height: 115%">%</td></tr>
</table>
85250000
96664600
91684882
10000000
2000000
10000
2000
3390000
398000
3400000
400000
400000
200000
400
200
185600
15800
186000
16000
400000
400000
1000000
3700000
1000
3700
249000
736300
250000
740000
15
70
7486
22463
7501
22533
-1153748
-934943
-33617
33499
-1187365
-901444
2549760
2550
754790
757340
-13500000
-13500
13500
14600
70522
16202947
-901444
-1187365
-2197287
33499
-33617
-118
-0.34
-0.34
0
0
971633
400483
-1041533
-407683
69900
7200
1041533
407683
-1041533
-407683
0.34
0.34
1000000
1400000
1400000
1000000
0
0.350
0.20
0.20
1000000
0.350
0.20
1.6715
1.8532
0.01185
0.0205
P4Y
0
2197169
346702
80000
675000
20000
P1Y9M30D
P2Y6M11D
0.15
This amendment is being filed to comply with regulations.
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify"><i>Mineral Properties</i></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Costs of acquiring mineral properties
are capitalized by project area upon purchase of the associated claims. Costs to maintain the mineral rights and leases and explore
are expensed as incurred.  When a property reaches the production stage, the related capitalized costs will be amortized,
using the units of production method on the basis of periodic estimates of ore reserves.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Mineral properties are periodically assessed
for impairment of value and any diminution in value.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><i>Exploration Stage Enterprise</i></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Since the Company is in the exploration
stage of operation, the Company’s financial statements are prepared in accordance with the provisions of ASC 915 Development
Stage Enterprises, as it devotes substantially all of its efforts to acquiring and exploring mining interests that management believes
should eventually provide sufficient net profits to sustain the Company’s existence. Until such interests are engaged in
commercial production, the Company will continue to prepare its consolidated financial statements and related disclosures in accordance
with this standard.</p>
<p style="font: 8pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt"> </p>