10-Q
2012-11-30
false
Laredo Resources Corp.
0001499871
--08-31
Smaller Reporting Company
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<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB" style='letter-spacing:-.1pt'>Note 1  <u>Basis of Presentation</u></font></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">While the information presented in the accompanying November 30, 2012 financial statements is unaudited, it includes all adjustments which are, in the opinion of management, necessary to present fairly the financial position, results of operations and cash flows for the period presented in accordance with the accounting principles generally accepted in the United States of America.  In the opinion of management, all adjustments considered necessary for a fair presentation of the results of operations and financial position have been included and all such adjustments are of a normal recurring nature.  These financial statements should be read in conjunction with the Company’s August 31, 2012 audited financial statements (notes thereto) included in the Company’s Form 10-K.</font></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Operating results for the three months ended November 30, 2012 are not necessarily indicative of the results that can be expected for the year ending August 31, 2013.</font></p>
<!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.75in;margin-bottom:.0001pt;text-align:justify;margin-left:0in'><font lang="EN-GB">Note 2  <u>Nature of Operations </u></font><u>and Ability to Continue as a Going Concern</u></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.75in;margin-bottom:.0001pt;text-align:justify;margin-left:0in'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'><font lang="EN-CA">The Company was incorporated in the state of Nevada, United States of America on August 17, 2010.  The Company is an exploration stage company and was formed for the purpose of acquiring exploration and development stage mineral properties.  The Company’s year-end is August 31.</font></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">On August 31, 2010, the Company incorporated a wholly-owned subsidiary, LRE Exploration LLC, (“LRE”) in the State of Nevada, United States of America (“USA”) for the purpose of mineral exploration in the USA.</font></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">On November 30, 2010, LRE entered into a property option agreement with Arbutus Minerals LLC. (“Arbutus”) whereby the Company was granted an option to earn up to a 100% interest in 20 mineral claims (the “ABR Claims”) located approximately 15 miles north of Elko, Nevada. (Note 4).  During the year ended August 31, 2012, the Company abandoned the property.</font></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.75in;margin-bottom:.0001pt;text-align:justify;margin-left:0in'><font lang="EN-GB">On September 10, 2012, the Company entered into an Agreement of Conveyance, Transfer and Assignment of Membership Interests and Assumption of Obligations (the “Agreement”), with the former President of the Company.  Pursuant to the Agreement, the Company’s interest in LRE was transferred to the former President and the former president assumed all liabilities of LRE and the Company received as consideration the release and discharge of all liabilities under all the promissory notes and accrued interest entered into prior to August 31, 2012.</font></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'><font lang="EN-CA">Effective October 30, 2012, the Company increased the number of authorized common shares of the Company from 90,000,000 to 4,500,000,000 shares </font><font lang="EN-CA">per director’s resolution dated October 30, 2012.</font><font lang="EN-CA">  </font></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'><font lang="EN-CA">The Company also conducted a fifty to one forward stock split of the Company’s issued and outstanding common shares</font><font lang="EN-CA"> per director’s resolution. </font><font lang="EN-CA">Following this stock split, the number of outstanding shares of the Company’s common stock increased from 3,570,000 shares to 178,500,000 shares. All share and per share information in these financial statements has been retro-actively restated for all periods presented to give effect of this stock split.</font></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">These financial statements have been prepared in accordance with generally accepted accounting principles applicable to a going concern, which assumes that the Company will be able to meet its obligations and continue its operations for its next fiscal year.  Realization values may be substantially different from carrying values as shown and these financial </font><font lang="EN-GB">statements do not give effect to adjustments that would be necessary to the carrying values and classification of assets and liabilities should the Company be unable to continue as a going concern.  The Company has yet to achieve profitable operations, has accumulated losses of </font><font lang="EN-GB">$</font><font lang="EN-GB">340,840</font><font lang="EN-GB"> since its inception and expects to incur further losses in the development of its business, all of which casts substantial doubt about the Company’s ability to continue as a going concern.</font></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">The Company’s ability</font><font lang="EN-GB"> to continue as a going concern is dependent upon its ability to generate future profitable operations and/or to obtain the necessary financing from shareholders or other sources to meet its obligations and repay its liabilities arising from normal business operations when they become due.  Management has no formal plan in place to address this concern but considers that the Company will be able to obtain additional funds by equity financing and/or related party advances, however there is no assurance of additional funding being available or on acceptable terms, if at all.</font><font lang="EN-GB">  The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts of and classification of liabilities that might be necessary in the event the company cannot continue in existence.</font></p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Note 3  <u>Summary of Significant Accounting Policies</u></font></p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;margin-left:0in;text-indent:0in'><font lang="EN-GB">The financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and are stated in US dollars.  The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expense during the reporting period. Actual results could differ from those estimates.</font></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;margin-left:0in;text-indent:0in'><font lang="EN-GB">The financial statements have, in management’s opinion, been properly prepared within the framework of the significant accounting policies summarized below:</font></p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><u><font lang="EN-GB">Principles of Consolidation</font></u></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">These financial statements include the accounts of the Company and LRE Exploration LLC. (“LRE”), until LRE was disposed of by sale to the former president on September 10, 2012.  Accordingly, the statements of operations and cash flows presented include the results of LRE from August 31, 2010 to September 10, 2012, and the balance sheet presented at November 30, 2012 is solely that of Laredo Resources Corp.  The balance sheet presented at August 31, 2012 comprises Laredo Resources Corp and its wholly owned subsidiary LRE.  All significant inter-company transactions and balances have been eliminated.</font></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><u>Exploration Stage Company</u></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>The Company is an exploration stage company.  All losses accumulated since inception are considered part of the Company’s exploration stage activities.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><u>Cash and cash equivalents </u></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>The Company considers all highly liquid instruments purchased with a maturity of three months or less to be cash equivalents.  There were no cash equivalents at November 30, 2012. </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>The Company minimizes its credit risk associated with cash by periodically evaluating the credit quality of its primary financial institution. The balance at times may exceed federally insured limits. At November 30, 2012, the balance did not exceed the federally insured limit.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><u><font lang="EN-GB">Mineral Property</font></u></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">The Company is primarily engaged in the acquisition, exploration and development of mineral properties.</font></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Mineral property acquisition costs are capitalized in accordance with FASB ASC 930, “Extractive Activities-Mining,” when management has determined that probable future benefits consisting of a contribution to future cash inflows have been identified and adequate financial resources are available or are expected to be available as required to meet the terms of property acquisition and budgeted exploration and development expenditures.  Mineral property acquisition costs are expensed as incurred if the criteria for capitalization are not met. </font></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">In the event that mineral property acquisition costs are paid with Company shares, those shares are recorded at the estimated fair value at the time the shares are due in accordance with the terms of the property agreements.</font></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Mineral property exploration costs are expensed as incurred.</font></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">When it has been determined that a mineral property can be economically developed as a result of establishing proven and probable reserves and pre-feasibility, the costs incurred to develop such property are capitalized.</font></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Estimated future removal and site restoration costs, when determinable are provided over the life of proven reserves on a units-of-production basis.  Costs, which include production equipment removal and environmental remediation, are estimated each period by management based on current regulations, actual expenses incurred, and technology and industry standards.  Any charge is included in exploration expense or the provision for depletion and depreciation during the period and the actual restoration expenditures are charged to the accumulated provision amounts as incurred.</font></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">To date the Company has not established any proven or probable reserves on its mineral properties.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.75in;margin-bottom:.0001pt;text-align:justify;margin-left:0in'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;margin-left:0in;text-indent:0in'><u><font lang="EN-GB">Asset Retirement Obligations</font></u></p> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:left'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>Asset retirement obligations (“ARO”) associated with the retirement of a tangible long-lived asset, are recognized as liabilities in the period in which it is incurred and becomes determinable, with an offsetting increase in the carrying amount of the associated assets. The cost of tangible long-lived assets, including the initially recognized ARO, is amortized, such that the cost of the ARO is recognized over the useful life of the assets.  The ARO is recorded at fair value, and accretion expense is recognized over time as the discounted fair value is accreted to the expected settlement value.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.75in;margin-bottom:.0001pt;text-align:justify;margin-left:0in'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>The fair value of the ARO is measured using expected future cash flow, discounted at the Company’s credit-adjusted risk-free interest rate.  As of November 30, 2012, the Company has determined no provision for ARO’s is required.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.75in;margin-bottom:.0001pt;text-align:justify;margin-left:0in'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;margin-left:0in;text-indent:0in'><u><font lang="EN-GB">Impairment of Long- Lived Assets </font></u></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.75in;margin-bottom:.0001pt;text-align:justify;margin-left:0in'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">The Company reviews and evaluates long-lived assets for impairment when events or changes in circumstances indicate that the related carrying amounts may not be recoverable.  The assets are subject to impairment consideration under FASB ASC 360-10-35-17 if events or circumstances indicate that their carrying amount might not be recoverable.  When the Company determines that an impairment analysis should be done, the analysis will be performed using the rules of FASB ASC 930-360-35, Asset Impairment, and 360- 0 through 15-5, Impairment or Disposal of Long- Lived Assets.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.75in;margin-bottom:.0001pt;text-align:justify;margin-left:0in'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><u><font lang="EN-GB">Foreign Currency Translation</font></u></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;margin-left:0in;text-indent:0in'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;margin-left:0in;text-indent:0in'><font lang="EN-GB">The Company’s functional currency is the United States dollar as substantially all of the Company’s operations are in the USA. The Company uses the United States dollar as its reporting currency for consistency with registrants of the Securities and Exchange Commission (“SEC”).</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;margin-left:0in;text-indent:0in'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;margin-left:0in;text-indent:0in'><font lang="EN-GB">Assets and liabilities denominated in a foreign currency are translated at the exchange rate in effect at the balance sheet date and capital accounts are translated at historical rates.  Income statement accounts are translated at the average rates of exchange prevailing during the period.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;margin-left:0in;text-indent:0in'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;margin-left:0in;text-indent:0in'><font lang="EN-GB">Translation adjustments from the use of different exchange rates from period to period are included in the Accumulated Other Comprehensive Income account in Stockholders’ Equity, if applicable.  </font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;margin-left:0in;text-indent:0in'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;margin-left:0in;text-indent:0in'><font lang="EN-GB">Transactions undertaken in currencies other than the functional currency of the entity are translated using the exchange rate in effect as of the transaction date.  Any exchange gains and losses are included in the Statement of Operations and Comprehensive Loss.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;margin-left:0in;text-indent:0in'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><u>Earnings per share  </u></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>In accordance with accounting guidance now codified as FASB ASC Topic 260, “Earnings per Share,”  basic earnings per share (“EPS”) is computed by dividing net loss available to common stockholders by the weighted average number of common shares outstanding during the period, excluding the effects of any potentially dilutive securities. Diluted EPS gives effect to all dilutive potential of shares of common stock outstanding during the period including stock options or warrants, using the treasury stock method (by using the average stock price for the period to determine the number of shares assumed to be purchased from the exercise of stock options or warrants), and convertible debt or convertible preferred stock, using the if-converted method.  Diluted EPS excludes all dilutive potential of shares of common stock if their effect is anti-dilutive.  <font lang="EN-GB">As there are no common stock equivalents outstanding, diluted and basic loss per share are the same.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;margin-left:0in;text-indent:0in'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;margin-left:0in;text-indent:0in'><u><font lang="EN-GB">Income Taxes</font></u></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;margin-left:0in;text-indent:0in'><font lang="EN-GB">The Company uses the asset and liability method of accounting for income taxes.  Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statements carrying amounts of existing assets and liabilities and loss carry-forwards and their respective tax bases.  Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;margin-left:0in;text-indent:0in'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;margin-left:0in;text-indent:0in'><font lang="EN-GB">The effect of a change in tax rules on deferred tax assets and liabilities is recognized in operations in the year of change. A valuation allowance is recorded when it is “more likely-than-not” that a deferred tax asset will not be realized.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;margin-left:0in;text-indent:0in'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;margin-left:0in;text-indent:0in'><u><font lang="EN-GB">Stock-based Compensation</font></u></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;margin-left:0in;text-indent:0in'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none'><font lang="EN-GB">The Company is required to record compensation expense, based on the fair value of the awards, for all awards granted after the date of the adoption. </font></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.75in;margin-bottom:.0001pt;text-align:justify;margin-left:0in'><u><font lang="EN-GB">Comprehensive Income</font></u></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.75in;margin-bottom:.0001pt;text-align:justify;margin-left:0in'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;margin-left:.75in;text-align:justify;margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">The Company is required to report comprehensive income, which includes net loss as well as changes in equity from non-owner sources.</font></p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Note 4  <u>Sale of Subsidiary</u></font></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.75in;margin-bottom:.0001pt;text-align:justify;margin-left:0in'><font lang="EN-GB">On September 10, 2012, the Company assigned all membership units of LRE to the former President of the Company and received as consideration the release and discharge of all liabilities under all the promissory notes and accrued interest entered into prior to August 31, 2012.</font></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">The following table summarizes the identifiable</font><font lang="EN-GB"> assets and liabilities of LRE that were disposed of, the consideration received, and the loss of LRE for the period from September 1, 2012 to September 10, 2012.</font></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB"> </font></p> <table border="0" cellspacing="0" cellpadding="0" width="100%" style='border-collapse:collapse'> <tr style='height:25.75pt'> <td width="432" valign="top" style='width:324.2pt;padding:0in .05in 0in .05in;height:25.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB" style='display:none'>.</font></p> </td> <td width="153" valign="top" style='width:115.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in .05in 0in .05in;height:25.75pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:center'><font lang="EN-GB">November 30</font></p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:center'><font lang="EN-GB">2012</font></p> </td> </tr> <tr style='height:12.35pt'> <td width="432" valign="top" style='width:324.2pt;padding:0in .05in 0in .05in;height:12.35pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> </td> <td width="153" valign="top" style='width:115.0pt;border:none;padding:0in .05in 0in .05in;height:12.35pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'> </p> </td> </tr> <tr style='height:12.35pt'> <td width="432" valign="top" style='width:324.2pt;padding:0in .05in 0in .05in;height:12.35pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><b><font lang="EN-GB">Identifiable Assets and Liabilities</font></b></p> </td> <td width="153" valign="top" style='width:115.0pt;padding:0in .05in 0in .05in;height:12.35pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'> </p> </td> </tr> <tr style='height:12.35pt'> <td width="432" valign="top" style='width:324.2pt;background:#DBE5F1;padding:0in .05in 0in .05in;height:12.35pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;margin-left:16.4pt'><font lang="EN-GB">Accounts payable</font></p> </td> <td width="153" valign="top" style='width:115.0pt;background:#DBE5F1;padding:0in .05in 0in .05in;height:12.35pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'><font lang="EN-GB">$ (450)</font></p> </td> </tr> <tr style='height:13.1pt'> <td width="432" valign="top" style='width:324.2pt;padding:0in .05in 0in .05in;height:13.1pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;margin-left:16.4pt'><font lang="EN-GB">Amount owed to Laredo Resources Corp</font></p> </td> <td width="153" valign="top" style='width:115.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in .05in 0in .05in;height:13.1pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'><font lang="EN-GB">(17,550)</font></p> </td> </tr> <tr style='height:12.35pt'> <td width="432" valign="top" style='width:324.2pt;background:#DBE5F1;padding:0in .05in 0in .05in;height:12.35pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Net liabilities of LRE</font></p> </td> <td width="153" valign="top" style='width:115.0pt;border:none;border-bottom:solid windowtext 1.0pt;background:#DBE5F1;padding:0in .05in 0in .05in;height:12.35pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'><font lang="EN-GB">(18,000)</font></p> </td> </tr> <tr style='height:12.35pt'> <td width="432" valign="top" style='width:324.2pt;padding:0in .05in 0in .05in;height:12.35pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> </td> <td width="153" valign="top" style='width:115.0pt;border:none;padding:0in .05in 0in .05in;height:12.35pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'> </p> </td> </tr> <tr style='height:12.35pt'> <td width="432" valign="top" style='width:324.2pt;background:#DBE5F1;padding:0in .05in 0in .05in;height:12.35pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Consideration Received</font></p> </td> <td width="153" valign="top" style='width:115.0pt;background:#DBE5F1;padding:0in .05in 0in .05in;height:12.35pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'> </p> </td> </tr> <tr style='height:12.35pt'> <td width="432" valign="top" style='width:324.2pt;padding:0in .05in 0in .05in;height:12.35pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;margin-left:23.5pt;text-indent:-14.2pt'><font lang="EN-GB">Settlement of accounts payable, promissory notes, and accrued interest</font></p> </td> <td width="153" valign="top" style='width:115.0pt;padding:0in .05in 0in .05in;height:12.35pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'><font lang="EN-GB">91,064</font></p> </td> </tr> <tr style='height:35.1pt'> <td width="432" valign="top" style='width:324.2pt;background:#DBE5F1;padding:0in .05in 0in .05in;height:35.1pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;margin-left:11.15pt'><font lang="EN-GB">Elimination of accumulated losses of LRE</font></p> </td> <td width="153" valign="top" style='width:115.0pt;border:none;border-bottom:solid windowtext 1.0pt;background:#DBE5F1;padding:0in .05in 0in .05in;height:35.1pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'><font lang="EN-GB">18,000</font></p> </td> </tr> <tr style='height:12.35pt'> <td width="432" valign="top" style='width:324.2pt;padding:0in .05in 0in .05in;height:12.35pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;margin-left:11.15pt'><font lang="EN-GB">   </font></p> </td> <td width="153" valign="top" style='width:115.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in .05in 0in .05in;height:12.35pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'><font lang="EN-GB">99,064</font></p> </td> </tr> <tr style='height:12.35pt'> <td width="432" valign="top" style='width:324.2pt;background:#DBE5F1;padding:0in .05in 0in .05in;height:12.35pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;margin-left:11.15pt'> </p> </td> <td width="153" valign="top" style='width:115.0pt;background:#DBE5F1;padding:0in .05in 0in .05in;height:12.35pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'> </p> </td> </tr> <tr style='height:12.35pt'> <td width="432" valign="top" style='width:324.2pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in .05in 0in .05in;height:12.35pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;margin-left:11.15pt'><font lang="EN-GB">Sale of subsidiary- related party</font></p> </td> <td width="153" valign="top" style='width:115.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in .05in 0in .05in;height:12.35pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'><font lang="EN-GB">$ 91,064</font></p> </td> </tr> <tr style='height:12.35pt'> <td width="432" valign="top" style='width:324.2pt;border:none;background:#DBE5F1;padding:0in .05in 0in .05in;height:12.35pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;margin-left:11.15pt'> </p> </td> <td width="153" valign="top" style='width:115.0pt;border:none;background:#DBE5F1;padding:0in .05in 0in .05in;height:12.35pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'> </p> </td> </tr> <tr style='height:12.35pt'> <td width="432" valign="top" style='width:324.2pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in .05in 0in .05in;height:12.35pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;margin-left:11.15pt;text-indent:-10.4pt'><font lang="EN-GB">Loss for the period from September 1, 2012 to September 10, 2012</font></p> </td> <td width="153" valign="top" style='width:115.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in .05in 0in .05in;height:12.35pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'><font lang="EN-GB">$ -</font></p> </td> </tr> </table> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;margin-left:55.0pt;text-indent:-55.0pt;text-autospace:none'> </p>
<!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;margin-left:.75in;text-indent:-.75in'>Note 5  <u>Financial Instruments </u></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;margin-left:.75in;text-indent:-.75in'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>Fair value is defined as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability. </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>The fair value should be calculated based on assumptions that market participants would use in pricing the asset or liability, not on assumptions specific to the entity. In addition, the fair value of liabilities should include consideration of non-performance risk including our own credit risk. </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>In addition to defining fair value, the standard expands the disclosure requirements around fair value and establishes a fair value hierarchy for valuation inputs.  The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market.  Each fair value measurement is reported in one of the three levels which is determined by the lowest level input that is significant to the fair value measurement in its entirety. These levels are: </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>Level 1 - inputs are based upon unadjusted quoted prices for identical instruments traded in active markets.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>Level 2 - inputs are based upon significant observable inputs other than quoted prices included in Level 1, such as quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>Level 3 - inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;margin-left:0in;text-indent:0in'><font lang="EN-GB">The carrying value of the Company’s financial assets and liabilities which consist of cash, accounts payable and accrued liabilities and notes payable in management’s opinion approximates fair value due to the short maturity of such instruments.  These financial assets and liabilities are valued using level 3 inputs, except for cash which is at level 1</font><font lang="EN-GB">.  </font><font lang="EN-GB">Unless otherwise noted, it is management’s opinion that the Company is not exposed to significant interest, exchange or credit risks arising from these financial instruments.</font></p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>Note 6  <u>Mineral Property</u></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <table border="1" cellspacing="0" cellpadding="0" width="100%" style='border-collapse:collapse;border:none'> <tr> <td width="255" valign="top" style='width:191.35pt;border:none;padding:0in .05in 0in .05in'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB" style='display:none'>.</font></p> </td> <td width="98" valign="top" style='width:73.55pt;border:none;padding:0in .05in 0in .05in'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:center'><font lang="EN-GB">November 30, </font></p> </td> <td width="98" valign="top" style='width:73.6pt;border:none;padding:0in .05in 0in .05in'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:center'><font lang="EN-GB">August 31,</font></p> </td> </tr> <tr> <td width="255" valign="top" style='width:191.35pt;border:none;padding:0in .05in 0in .05in'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> </td> <td width="98" valign="top" style='width:73.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in .05in 0in .05in'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:center'><font lang="EN-GB">2012</font></p> </td> <td width="98" valign="top" style='width:73.35pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in .05in 0in .05in'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:center'><font lang="EN-GB">2012</font></p> </td> </tr> <tr> <td width="255" valign="top" style='width:191.35pt;border:none;padding:0in .05in 0in .05in'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">ABR Claims</font></p> </td> <td width="98" valign="top" style='width:73.8pt;border:none;padding:0in .05in 0in .05in'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'> </p> </td> <td width="98" valign="top" style='width:73.35pt;border:none;padding:0in .05in 0in .05in'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'> </p> </td> </tr> <tr> <td width="255" valign="top" style='width:191.35pt;border:none;background:#DBE5F1;padding:0in .05in 0in .05in'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">  Option Costs</font></p> </td> <td width="98" valign="top" style='width:73.8pt;border:none;background:#DBE5F1;padding:0in .05in 0in .05in'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'><font lang="EN-GB">$  -</font></p> </td> <td width="98" valign="top" style='width:73.35pt;border:none;background:#DBE5F1;padding:0in .05in 0in .05in'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'><font lang="EN-GB">$  -</font></p> </td> </tr> <tr style='height:9.0pt'> <td width="255" valign="top" style='width:191.35pt;border:none;padding:0in .05in 0in .05in;height:9.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> </td> <td width="98" valign="top" style='width:73.8pt;border:none;border-top:solid windowtext 1.0pt;padding:0in .05in 0in .05in;height:9.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'> </p> </td> <td width="98" valign="top" style='width:73.35pt;border:none;border-top:solid windowtext 1.0pt;padding:0in .05in 0in .05in;height:9.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'> </p> </td> </tr> <tr style='height:9.0pt'> <td width="255" valign="top" style='width:191.35pt;border:none;background:#DBE5F1;padding:0in .05in 0in .05in;height:9.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Net cost</font></p> </td> <td width="98" valign="top" style='width:73.8pt;border:none;border-bottom:double windowtext 1.5pt;background:#DBE5F1;padding:0in .05in 0in .05in;height:9.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'><font lang="EN-GB">$  -</font></p> </td> <td width="98" valign="top" style='width:73.35pt;border:none;border-bottom:double windowtext 1.5pt;background:#DBE5F1;padding:0in .05in 0in .05in;height:9.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'><font lang="EN-GB">$  -</font></p> </td> </tr> </table> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">On November 30, 2010, LRE entered into a property option agreement (amended April 3, 2012) with Arbutus Minerals LLC (“Arbutus”) whereby the Company was granted an option to earn up to a 100% interest in 20 mineral claims (the “ABR Claims”) located approximately 15 miles north of Elko, Nevada.  </font>Arbutus holds only the mineral rights to the ABR Claims as the ABR Claims are on Bureau of Land Management managed land.  <font lang="EN-GB">Consideration for the option consists of cash payments to Arbutus totalling </font><font lang="EN-GB">$90,000</font><font lang="EN-GB">, and aggregate exploration expenditures of </font><font lang="EN-GB">$295,000</font><font lang="EN-GB"> as follows:</font></p> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:left'> </p> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:left'>Payments to Arbutus</p> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;margin-left:.5in;text-align:left;text-indent:-.25in'><font style='font-family:Symbol'>·    </font>$10,000 upon execution of option agreement;</p> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;margin-left:.5in;text-align:left;text-indent:-.25in'><font style='font-family:Symbol'>·    </font>$10,000 on or before November 30, 2011 (payment extended to November 30, 2012);</p> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;margin-left:.5in;text-align:left;text-indent:-.25in'><font style='font-family:Symbol'>·    </font>$20,000 on or before November 30, 2012; and</p> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;margin-left:.5in;text-align:left;text-indent:-.25in'><font style='font-family:Symbol'>·    </font>$50,000 on or before November 30, 2013.</p> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:left'> </p> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:left'>Exploration Expenditures</p> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;margin-left:.5in;text-align:left;text-indent:-.25in'><font style='font-family:Symbol'>·    </font>$15,000 in aggregate exploration expenditures prior to November 30, 2012;</p> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;margin-left:.5in;text-align:left;text-indent:-.25in'><font style='font-family:Symbol'>·    </font>$65,000 in aggregate exploration expenditures prior to November 30, 2013; and</p> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;margin-left:.5in;text-align:left;text-indent:-.25in'><font style='font-family:Symbol'>·    </font>$215,000 in aggregate exploration expenditures prior to November 30, 2014.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>As at August 31, 2012, the Company had incurred $10,000 in acquisition costs and accrued an additional $10,000 in the form of option payments to Arbutus per the option agreement. 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, currently no property has reached the production stage. When the Company has capitalized mineral properties, these properties will be periodically assessed for impairment of value and any diminution in value. </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>From Inception (August 17, 2010) to August 31, 2012, the Company had incurred an aggregate amount of $4,500 for geological surveys, which are considered geological and geophysical costs which are expensed when incurred.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>During August 2012, the Company abandoned the property and all property option costs incurred were written off.  The Company also negotiated the forgiveness of $10,000 which was due pursuant to the property option agreement on November 30, 2012.</p>
<!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;margin-left:0in;text-indent:0in'><font lang="EN-GB">Note 7  <u>Related Party Transactions</u></font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;margin-left:0in;text-indent:0in'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">All related party transactions have been measured at the exchange value which was the amount of consideration established and agreed to by the related parties.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.75in;margin-bottom:.0001pt;text-align:justify;margin-left:0in'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.75in;margin-bottom:.0001pt;text-align:justify;margin-left:0in'><font lang="EN-GB">As at November 30, 2012, accounts payable and accrued liabilities includes </font><font lang="EN-GB">$16,000</font><font lang="EN-GB"> (August 31, 2012 - $nil) owing to the President.</font></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.75in;margin-bottom:.0001pt;text-align:justify;margin-left:0in'><font lang="EN-GB">During the three month period ended November 30, 2012, the Company incurred management fees of </font><font lang="EN-GB">$16,000</font><font lang="EN-GB"> (three month period ended November 30, 2011 - $nil) owing to the Company’s president.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.75in;margin-bottom:.0001pt;text-align:justify;margin-left:0in'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">On May 21, 2012, the Company President loaned $10,000 to the Company and the Company issued a promissory note in the amount of </font><font lang="EN-GB">$10,000</font><font lang="EN-GB">.  </font><font lang="EN-GB">The promissory note is unsecured, bears interest at 6% per annum, and matures on May 31, 2014.  During the three month period ended November 30, 2012, the Company accrued </font><font lang="EN-GB">$16</font><font lang="EN-GB"> (three month period ended November 30, 2011 - $nil) of interest expense in respect of this note payable.  Total accrued interest on this note as of September 10, 2012 was </font><font lang="EN-GB">$286</font><font lang="EN-GB"> (August 31, 2012 - </font><font lang="EN-GB">$270</font><font lang="EN-GB">).  </font></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">On March 20, 2012, the Company President loaned $7,500 to the Company and the Company issued a promissory note in the amount of </font><font lang="EN-GB">$7,500</font><font lang="EN-GB">.  </font><font lang="EN-GB">The promissory note is unsecured, bears interest at 6% per annum, and matures on March 31, 2013.  During the three month period ended November 30, 2012, the Company accrued </font><font lang="EN-GB">$12</font><font lang="EN-GB"> (three month period ended November 30, 2011 - $nil) of interest expense in respect of this note payable.  Total accrued interest on this note as of September 10, 2012 was </font><font lang="EN-GB">$214</font><font lang="EN-GB"> (August 31, 2012 - </font><font lang="EN-GB">$202</font><font lang="EN-GB">)</font></p> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:left'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">On November 22, 2011, the Company President loaned $15,000 to the Company and the Company issued a promissory note in the amount of </font><font lang="EN-GB">$15,000</font><font lang="EN-GB">.  </font><font lang="EN-GB">The promissory note is unsecured, bears interest at 6% per annum, and matures on November 30, 2013.  During the three month period ended November 30, 2012, the Company accrued </font><font lang="EN-GB">$24</font><font lang="EN-GB"> (three month period ended November 30, 2011 - </font><font lang="EN-GB">$20</font><font lang="EN-GB">) of interest expense in respect of this note payable.  Total accrued interest on this note as of September 10, 2012 was </font><font lang="EN-GB">$722</font><font lang="EN-GB"> (August 31, 2012 - </font><font lang="EN-GB">$698</font><font lang="EN-GB">)</font></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">On September 13, 2011, the Company President loaned $15,000 to the Company and the Company issued a promissory note in the amount of </font><font lang="EN-GB">$15,000</font><font lang="EN-GB">.  </font><font lang="EN-GB">The promissory note is unsecured, bears interest at 6% per annum, and matures on September 30, 2013.  During the three month period ended November 30, 2012, the Company accrued </font><font lang="EN-GB">$25</font><font lang="EN-GB"> (three month period ended November 30, 2011 - </font><font lang="EN-GB">$192</font><font lang="EN-GB">) of interest expense in respect of this note payable.  Total accrued interest on this note as of September 10, 2012 was </font><font lang="EN-GB">$895</font><font lang="EN-GB"> (August 31, 2012 - </font><font lang="EN-GB">$870</font><font lang="EN-GB">)</font></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">On August 22, 2011, the Company President loaned $4,000 to the Company and the Company issued a promissory note in the amount of </font><font lang="EN-GB">$4,000</font><font lang="EN-GB">.  </font><font lang="EN-GB">The promissory note is unsecured, bears interest at 6% per annum, and matures on August 31, 2013.  During the three month period ended November 30, 2012, the Company accrued </font><font lang="EN-GB">$7</font><font lang="EN-GB"> (three month period ended November 30, 2011 - </font><font lang="EN-GB">$60</font><font lang="EN-GB">) of interest expense in respect of this note payable.  Total accrued interest on this note as of September 10, 2012 was </font><font lang="EN-GB">$253</font><font lang="EN-GB"> (August 31, 2012 - </font><font lang="EN-GB">$246</font><font lang="EN-GB">)</font></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">On May 10, 2011, the Company President loaned $10,000 to the Company and the Company issued a promissory note in the amount of </font><font lang="EN-GB">$10,000</font><font lang="EN-GB">.  </font><font lang="EN-GB">The promissory note is unsecured, bears interest at 6% per annum, and matures on May 31, 2013.  During the three month period ended November 30, 2012, the Company accrued </font><font lang="EN-GB">$16</font><font lang="EN-GB"> (three month period ended November 30, 2011 - </font><font lang="EN-GB">$149</font><font lang="EN-GB">) of interest expense in respect of this note payable.  Total accrued interest on this note as of September 10, 2012 was </font><font lang="EN-GB">$803</font><font lang="EN-GB"> (August 31, 2012 - </font><font lang="EN-GB">$787</font><font lang="EN-GB">).</font></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">On February 15, 2011, the Company President loaned $10,000 to the Company and the Company issued a promissory note in the amount of </font><font lang="EN-GB">$10,000</font><font lang="EN-GB">.  </font><font lang="EN-GB">The promissory note is unsecured, bears interest at 6% per annum, and matures on February 28, 2013.  During the three month period ended November 30, 2012, the Company accrued </font><font lang="EN-GB">$16</font><font lang="EN-GB"> (three month period ended November 30, 2011 - </font><font lang="EN-GB">$100</font><font lang="EN-GB">) of interest expense in respect of this note payable.  Total accrued interest on this note as of September 10, 2012 was </font><font lang="EN-GB">$941</font><font lang="EN-GB"> (August 31, 2012 - </font><font lang="EN-GB">$925</font><font lang="EN-GB">)</font></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">On September 2, 2010, the Company President loaned $15,000 to the Company and the Company issued a promissory note in the amount of </font><font lang="EN-GB">$15,000</font><font lang="EN-GB">.  </font><font lang="EN-GB">The promissory note is unsecured, non-interest bearing, and matures on September 30, 2012.  During the three month period ended November 30, 2012, the Company accrued </font><font lang="EN-GB">$25</font><font lang="EN-GB"> (three month period ended November 30, 2011 - </font><font lang="EN-GB">$150</font><font lang="EN-GB">) of interest expense in respect of this note payable.  The Company also recorded a capital contribution for the three month period ended November 30, 2012 of </font><font lang="EN-GB">$25</font><font lang="EN-GB"> (three month period ended November 30, 2011 - </font><font lang="EN-GB">$150</font><font lang="EN-GB">) in respect of the imputed interest charged on this note payable. </font><font lang="EN-GB"> </font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.75in;margin-bottom:.0001pt;text-align:justify;margin-left:0in'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.75in;margin-bottom:.0001pt;text-align:justify;margin-left:0in'><font lang="EN-GB">On August 19, 2010, the Company received and accepted a subscription to purchase </font><font lang="EN-GB">2,000,000</font><font lang="EN-GB"> shares of common stock at </font><font lang="EN-GB">$0.0078</font><font lang="EN-GB"> per share for aggregate proceeds of </font><font lang="EN-GB">$15,625</font><font lang="EN-GB"> from the Company’s president.  The subscription agreement permitted the Company to accept 200,000 Mexican Peso’s in full settlement of the share subscription.  The share subscription was settled in Mexican Peso’s.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.75in;margin-bottom:.0001pt;text-align:justify;margin-left:0in'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.75in;margin-bottom:.0001pt;text-align:justify;margin-left:0in'><font lang="EN-GB">On September 10, 2012, the President resigned and her controlling interest of </font><font lang="EN-GB">100,000,000</font><font lang="EN-GB"> post split shares was transferred to a third party who subsequently was appointed President.  </font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.75in;margin-bottom:.0001pt;text-align:justify;margin-left:0in'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.75in;margin-bottom:.0001pt;text-align:justify;margin-left:0in'><font lang="EN-GB">On September 10, 2012, the Company assigned all membership units of LRE to the former President of the Company and received as consideration the release and discharge of all liabilities under all the promissory notes and accrued interest to the date of the transaction.  As at September 10, 2012, this amount aggregated </font><font lang="EN-GB">$90,614</font><font lang="EN-GB">.</font></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">On September 10, 2012, the Company issued a promissory note of $20,000 to a Company controlled by the Company’s newly appointed president and received </font><font lang="EN-GB">$20,000</font><font lang="EN-GB"> cash in exchange.  The promissory note is unsecured, bears interest at 6% per annum, and matures on September 10, 2013.  </font><font lang="EN-GB">During the three month period ended November 30, 2012, the Company accrued </font><font lang="EN-GB">$260</font><font lang="EN-GB"> (three months ended November 30, 2011 - $nil) of interest expense in respect of this note payable.  Total accrued interest on this note as of November 30, 2012 was </font><font lang="EN-GB">$260</font><font lang="EN-GB"> (August 31, 2012 - $nil)</font></p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Note 8  <u>Capital Stock</u></font></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><u><font lang="EN-GB">Issued:</font></u></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">On August 19, 2010, the Company issued </font><font lang="EN-GB">100,000,000</font><font lang="EN-GB"> post split shares of common stock to the Company’s president at </font><font lang="EN-GB">$0.000156</font><font lang="EN-GB"> per share for total proceeds of </font><font lang="EN-GB">$15,625</font><font lang="EN-GB">.</font></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">On August 27, 2010, the Company issued </font><font lang="EN-GB">78,500,000</font><font lang="EN-GB"> shares of common stock at </font><font lang="EN-GB">$0.000157</font><font lang="EN-GB"> per share for total proceeds of </font><font lang="EN-GB">$12,560</font><font lang="EN-GB"> pursuant to a private placement.  The Company paid commissions of </font><font lang="EN-GB">$200</font><font lang="EN-GB"> for net proceeds of </font><font lang="EN-GB">$12,360</font><font lang="EN-GB">.</font></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">All references in these financial statements to number of common shares, price per share and weighted number of common shares outstanding prior to 50 to 1 stock split on October 30, 2012 have been adjusted to reflect this stock split on a retroactive basis, unless otherwise noted.</font></p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Note 9  <u>Proposed Transaction</u></font></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'><font lang="EN-CA">On November 2, 2012, the Company entered into a letter agreement with Magna Management Ltd. (“Magna”) whereby the Company was granted the exclusive right, for a period of sixty days, to negotiate for the acquisition of all rights held by Magna in a mineral Property known as Pony Gold Mountain located in southwestern Montana.</font></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'><font lang="EN-CA">Should the acquisition be completed as contemplated the Company pay </font><font lang="EN-CA">$3,000,000</font><font lang="EN-CA"> in quarterly instalments of </font><font lang="EN-CA">$250,000</font><font lang="EN-CA"> commencing December 5, 2012 for the property.  The agreement is subject to a 2% net smelter royalty.</font></p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><u><font lang="EN-GB">Principles of Consolidation</font></u></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">These financial statements include the accounts of the Company and LRE Exploration LLC. (“LRE”), until LRE was disposed of by sale to the former president on September 10, 2012.  Accordingly, the statements of operations and cash flows presented include the results of LRE from August 31, 2010 to September 10, 2012, and the balance sheet presented at November 30, 2012 is solely that of Laredo Resources Corp.  The balance sheet presented at August 31, 2012 comprises Laredo Resources Corp and its wholly owned subsidiary LRE.  All significant inter-company transactions and balances have been eliminated.</font></p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><u>Exploration Stage Company</u></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>The Company is an exploration stage company.  All losses accumulated since inception are considered part of the Company’s exploration stage activities.</p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><u>Cash and cash equivalents </u></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>The Company considers all highly liquid instruments purchased with a maturity of three months or less to be cash equivalents.  There were no cash equivalents at November 30, 2012. </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>The Company minimizes its credit risk associated with cash by periodically evaluating the credit quality of its primary financial institution. The balance at times may exceed federally insured limits. At November 30, 2012, the balance did not exceed the federally insured limit.</p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><u><font lang="EN-GB">Mineral Property</font></u></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">The Company is primarily engaged in the acquisition, exploration and development of mineral properties.</font></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Mineral property acquisition costs are capitalized in accordance with FASB ASC 930, “Extractive Activities-Mining,” when management has determined that probable future benefits consisting of a contribution to future cash inflows have been identified and adequate financial resources are available or are expected to be available as required to meet the terms of property acquisition and budgeted exploration and development expenditures.  Mineral property acquisition costs are expensed as incurred if the criteria for capitalization are not met. </font></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">In the event that mineral property acquisition costs are paid with Company shares, those shares are recorded at the estimated fair value at the time the shares are due in accordance with the terms of the property agreements.</font></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Mineral property exploration costs are expensed as incurred.</font></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">When it has been determined that a mineral property can be economically developed as a result of establishing proven and probable reserves and pre-feasibility, the costs incurred to develop such property are capitalized.</font></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Estimated future removal and site restoration costs, when determinable are provided over the life of proven reserves on a units-of-production basis.  Costs, which include production equipment removal and environmental remediation, are estimated each period by management based on current regulations, actual expenses incurred, and technology and industry standards.  Any charge is included in exploration expense or the provision for depletion and depreciation during the period and the actual restoration expenditures are charged to the accumulated provision amounts as incurred.</font></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">To date the Company has not established any proven or probable reserves on its mineral properties.</font></p>
<!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;margin-left:0in;text-indent:0in'><u><font lang="EN-GB">Asset Retirement Obligations</font></u></p> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:left'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>Asset retirement obligations (“ARO”) associated with the retirement of a tangible long-lived asset, are recognized as liabilities in the period in which it is incurred and becomes determinable, with an offsetting increase in the carrying amount of the associated assets. The cost of tangible long-lived assets, including the initially recognized ARO, is amortized, such that the cost of the ARO is recognized over the useful life of the assets.  The ARO is recorded at fair value, and accretion expense is recognized over time as the discounted fair value is accreted to the expected settlement value.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.75in;margin-bottom:.0001pt;text-align:justify;margin-left:0in'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>The fair value of the ARO is measured using expected future cash flow, discounted at the Company’s credit-adjusted risk-free interest rate.  As of November 30, 2012, the Company has determined no provision for ARO’s is required.</p>
<!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;margin-left:0in;text-indent:0in'><u><font lang="EN-GB">Impairment of Long- Lived Assets </font></u></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.75in;margin-bottom:.0001pt;text-align:justify;margin-left:0in'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">The Company reviews and evaluates long-lived assets for impairment when events or changes in circumstances indicate that the related carrying amounts may not be recoverable.  The assets are subject to impairment consideration under FASB ASC 360-10-35-17 if events or circumstances indicate that their carrying amount might not be recoverable.  When the Company determines that an impairment analysis should be done, the analysis will be performed using the rules of FASB ASC 930-360-35, Asset Impairment, and 360- 0 through 15-5, Impairment or Disposal of Long- Lived Assets.</font></p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><u><font lang="EN-GB">Foreign Currency Translation</font></u></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;margin-left:0in;text-indent:0in'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;margin-left:0in;text-indent:0in'><font lang="EN-GB">The Company’s functional currency is the United States dollar as substantially all of the Company’s operations are in the USA. The Company uses the United States dollar as its reporting currency for consistency with registrants of the Securities and Exchange Commission (“SEC”).</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;margin-left:0in;text-indent:0in'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;margin-left:0in;text-indent:0in'><font lang="EN-GB">Assets and liabilities denominated in a foreign currency are translated at the exchange rate in effect at the balance sheet date and capital accounts are translated at historical rates.  Income statement accounts are translated at the average rates of exchange prevailing during the period.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;margin-left:0in;text-indent:0in'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;margin-left:0in;text-indent:0in'><font lang="EN-GB">Translation adjustments from the use of different exchange rates from period to period are included in the Accumulated Other Comprehensive Income account in Stockholders’ Equity, if applicable.  </font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;margin-left:0in;text-indent:0in'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;margin-left:0in;text-indent:0in'><font lang="EN-GB">Transactions undertaken in currencies other than the functional currency of the entity are translated using the exchange rate in effect as of the transaction date.  Any exchange gains and losses are included in the Statement of Operations and Comprehensive Loss.</font></p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><u>Earnings per share  </u></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>In accordance with accounting guidance now codified as FASB ASC Topic 260, “Earnings per Share,”  basic earnings per share (“EPS”) is computed by dividing net loss available to common stockholders by the weighted average number of common shares outstanding during the period, excluding the effects of any potentially dilutive securities. Diluted EPS gives effect to all dilutive potential of shares of common stock outstanding during the period including stock options or warrants, using the treasury stock method (by using the average stock price for the period to determine the number of shares assumed to be purchased from the exercise of stock options or warrants), and convertible debt or convertible preferred stock, using the if-converted method.  Diluted EPS excludes all dilutive potential of shares of common stock if their effect is anti-dilutive.  <font lang="EN-GB">As there are no common stock equivalents outstanding, diluted and basic loss per share are the same.</font></p>
<!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;margin-left:0in;text-indent:0in'><u><font lang="EN-GB">Income Taxes</font></u></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;margin-left:0in;text-indent:0in'><font lang="EN-GB">The Company uses the asset and liability method of accounting for income taxes.  Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statements carrying amounts of existing assets and liabilities and loss carry-forwards and their respective tax bases.  Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;margin-left:0in;text-indent:0in'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;margin-left:0in;text-indent:0in'><font lang="EN-GB">The effect of a change in tax rules on deferred tax assets and liabilities is recognized in operations in the year of change. A valuation allowance is recorded when it is “more likely-than-not” that a deferred tax asset will not be realized.</font></p>
<!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;margin-left:0in;text-indent:0in'><u><font lang="EN-GB">Stock-based Compensation</font></u></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;margin-left:0in;text-indent:0in'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none'><font lang="EN-GB">The Company is required to record compensation expense, based on the fair value of the awards, for all awards granted after the date of the adoption. </font></p>
<!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.75in;margin-bottom:.0001pt;text-align:justify;margin-left:0in'><u><font lang="EN-GB">Comprehensive Income</font></u></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.75in;margin-bottom:.0001pt;text-align:justify;margin-left:0in'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;margin-left:.75in;text-align:justify;margin:0in;margin-bottom:.0001pt'><font lang="EN-GB">The Company is required to report comprehensive income, which includes net loss as well as changes in equity from non-owner sources.</font></p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB"> </font></p> <table border="0" cellspacing="0" cellpadding="0" width="100%" style='border-collapse:collapse'> <tr style='height:25.75pt'> <td width="432" valign="top" style='width:324.2pt;padding:0in .05in 0in .05in;height:25.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB" style='display:none'>.</font></p> </td> <td width="153" valign="top" style='width:115.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in .05in 0in .05in;height:25.75pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:center'><font lang="EN-GB">November 30</font></p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:center'><font lang="EN-GB">2012</font></p> </td> </tr> <tr style='height:12.35pt'> <td width="432" valign="top" style='width:324.2pt;padding:0in .05in 0in .05in;height:12.35pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> </td> <td width="153" valign="top" style='width:115.0pt;border:none;padding:0in .05in 0in .05in;height:12.35pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'> </p> </td> </tr> <tr style='height:12.35pt'> <td width="432" valign="top" style='width:324.2pt;padding:0in .05in 0in .05in;height:12.35pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><b><font lang="EN-GB">Identifiable Assets and Liabilities</font></b></p> </td> <td width="153" valign="top" style='width:115.0pt;padding:0in .05in 0in .05in;height:12.35pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'> </p> </td> </tr> <tr style='height:12.35pt'> <td width="432" valign="top" style='width:324.2pt;background:#DBE5F1;padding:0in .05in 0in .05in;height:12.35pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;margin-left:16.4pt'><font lang="EN-GB">Accounts payable</font></p> </td> <td width="153" valign="top" style='width:115.0pt;background:#DBE5F1;padding:0in .05in 0in .05in;height:12.35pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'><font lang="EN-GB">$ (450)</font></p> </td> </tr> <tr style='height:13.1pt'> <td width="432" valign="top" style='width:324.2pt;padding:0in .05in 0in .05in;height:13.1pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;margin-left:16.4pt'><font lang="EN-GB">Amount owed to Laredo Resources Corp</font></p> </td> <td width="153" valign="top" style='width:115.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in .05in 0in .05in;height:13.1pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'><font lang="EN-GB">(17,550)</font></p> </td> </tr> <tr style='height:12.35pt'> <td width="432" valign="top" style='width:324.2pt;background:#DBE5F1;padding:0in .05in 0in .05in;height:12.35pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Net liabilities of LRE</font></p> </td> <td width="153" valign="top" style='width:115.0pt;border:none;border-bottom:solid windowtext 1.0pt;background:#DBE5F1;padding:0in .05in 0in .05in;height:12.35pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'><font lang="EN-GB">(18,000)</font></p> </td> </tr> <tr style='height:12.35pt'> <td width="432" valign="top" style='width:324.2pt;padding:0in .05in 0in .05in;height:12.35pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> </td> <td width="153" valign="top" style='width:115.0pt;border:none;padding:0in .05in 0in .05in;height:12.35pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'> </p> </td> </tr> <tr style='height:12.35pt'> <td width="432" valign="top" style='width:324.2pt;background:#DBE5F1;padding:0in .05in 0in .05in;height:12.35pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Consideration Received</font></p> </td> <td width="153" valign="top" style='width:115.0pt;background:#DBE5F1;padding:0in .05in 0in .05in;height:12.35pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'> </p> </td> </tr> <tr style='height:12.35pt'> <td width="432" valign="top" style='width:324.2pt;padding:0in .05in 0in .05in;height:12.35pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;margin-left:23.5pt;text-indent:-14.2pt'><font lang="EN-GB">Settlement of accounts payable, promissory notes, and accrued interest</font></p> </td> <td width="153" valign="top" style='width:115.0pt;padding:0in .05in 0in .05in;height:12.35pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'><font lang="EN-GB">91,064</font></p> </td> </tr> <tr style='height:35.1pt'> <td width="432" valign="top" style='width:324.2pt;background:#DBE5F1;padding:0in .05in 0in .05in;height:35.1pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;margin-left:11.15pt'><font lang="EN-GB">Elimination of accumulated losses of LRE</font></p> </td> <td width="153" valign="top" style='width:115.0pt;border:none;border-bottom:solid windowtext 1.0pt;background:#DBE5F1;padding:0in .05in 0in .05in;height:35.1pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'><font lang="EN-GB">18,000</font></p> </td> </tr> <tr style='height:12.35pt'> <td width="432" valign="top" style='width:324.2pt;padding:0in .05in 0in .05in;height:12.35pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;margin-left:11.15pt'><font lang="EN-GB">   </font></p> </td> <td width="153" valign="top" style='width:115.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in .05in 0in .05in;height:12.35pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'><font lang="EN-GB">99,064</font></p> </td> </tr> <tr style='height:12.35pt'> <td width="432" valign="top" style='width:324.2pt;background:#DBE5F1;padding:0in .05in 0in .05in;height:12.35pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;margin-left:11.15pt'> </p> </td> <td width="153" valign="top" style='width:115.0pt;background:#DBE5F1;padding:0in .05in 0in .05in;height:12.35pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'> </p> </td> </tr> <tr style='height:12.35pt'> <td width="432" valign="top" style='width:324.2pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in .05in 0in .05in;height:12.35pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;margin-left:11.15pt'><font lang="EN-GB">Sale of subsidiary- related party</font></p> </td> <td width="153" valign="top" style='width:115.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in .05in 0in .05in;height:12.35pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'><font lang="EN-GB">$ 91,064</font></p> </td> </tr> <tr style='height:12.35pt'> <td width="432" valign="top" style='width:324.2pt;border:none;background:#DBE5F1;padding:0in .05in 0in .05in;height:12.35pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;margin-left:11.15pt'> </p> </td> <td width="153" valign="top" style='width:115.0pt;border:none;background:#DBE5F1;padding:0in .05in 0in .05in;height:12.35pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'> </p> </td> </tr> <tr style='height:12.35pt'> <td width="432" valign="top" style='width:324.2pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in .05in 0in .05in;height:12.35pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;margin-left:11.15pt;text-indent:-10.4pt'><font lang="EN-GB">Loss for the period from September 1, 2012 to September 10, 2012</font></p> </td> <td width="153" valign="top" style='width:115.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in .05in 0in .05in;height:12.35pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'><font lang="EN-GB">$ -</font></p> </td> </tr> </table>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <table border="1" cellspacing="0" cellpadding="0" width="100%" style='border-collapse:collapse;border:none'> <tr> <td width="255" valign="top" style='width:191.35pt;border:none;padding:0in .05in 0in .05in'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB" style='display:none'>.</font></p> </td> <td width="98" valign="top" style='width:73.55pt;border:none;padding:0in .05in 0in .05in'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:center'><font lang="EN-GB">November 30, </font></p> </td> <td width="98" valign="top" style='width:73.6pt;border:none;padding:0in .05in 0in .05in'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:center'><font lang="EN-GB">August 31,</font></p> </td> </tr> <tr> <td width="255" valign="top" style='width:191.35pt;border:none;padding:0in .05in 0in .05in'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> </td> <td width="98" valign="top" style='width:73.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in .05in 0in .05in'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:center'><font lang="EN-GB">2012</font></p> </td> <td width="98" valign="top" style='width:73.35pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in .05in 0in .05in'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:center'><font lang="EN-GB">2012</font></p> </td> </tr> <tr> <td width="255" valign="top" style='width:191.35pt;border:none;padding:0in .05in 0in .05in'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">ABR Claims</font></p> </td> <td width="98" valign="top" style='width:73.8pt;border:none;padding:0in .05in 0in .05in'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'> </p> </td> <td width="98" valign="top" style='width:73.35pt;border:none;padding:0in .05in 0in .05in'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'> </p> </td> </tr> <tr> <td width="255" valign="top" style='width:191.35pt;border:none;background:#DBE5F1;padding:0in .05in 0in .05in'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">  Option Costs</font></p> </td> <td width="98" valign="top" style='width:73.8pt;border:none;background:#DBE5F1;padding:0in .05in 0in .05in'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'><font lang="EN-GB">$  -</font></p> </td> <td width="98" valign="top" style='width:73.35pt;border:none;background:#DBE5F1;padding:0in .05in 0in .05in'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'><font lang="EN-GB">$  -</font></p> </td> </tr> <tr style='height:9.0pt'> <td width="255" valign="top" style='width:191.35pt;border:none;padding:0in .05in 0in .05in;height:9.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> </td> <td width="98" valign="top" style='width:73.8pt;border:none;border-top:solid windowtext 1.0pt;padding:0in .05in 0in .05in;height:9.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'> </p> </td> <td width="98" valign="top" style='width:73.35pt;border:none;border-top:solid windowtext 1.0pt;padding:0in .05in 0in .05in;height:9.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'> </p> </td> </tr> <tr style='height:9.0pt'> <td width="255" valign="top" style='width:191.35pt;border:none;background:#DBE5F1;padding:0in .05in 0in .05in;height:9.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Net cost</font></p> </td> <td width="98" valign="top" style='width:73.8pt;border:none;border-bottom:double windowtext 1.5pt;background:#DBE5F1;padding:0in .05in 0in .05in;height:9.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'><font lang="EN-GB">$  -</font></p> </td> <td width="98" valign="top" style='width:73.35pt;border:none;border-bottom:double windowtext 1.5pt;background:#DBE5F1;padding:0in .05in 0in .05in;height:9.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'><font lang="EN-GB">$  -</font></p> </td> </tr> </table>
340840
-450
-17550
-18000
91064
18000
91064
90000
295000
10000
10000
10000
4500
the Company abandoned the property and all property option costs incurred were written off. The Company also negotiated the forgiveness of $10,000 which was due pursuant to the property option agreement on November 30, 2012
16000
16000
10000
16
286
270
7500
12
214
202
15000
24
20
722
698
15000
25
192
895
870
4000
7
60
253
246
10000
16
149
803
787
10000
16
100
941
925
15000
25
150
25
150
2000000
0.0078
15625
100000000
90614
20000
260
260
100000000
0.000156
15625
78500000
0.000157
12560
200
12360
3000000
250000
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