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Accelerated Filer
SILVER BULL RESOURCES, INC.
6621742
458593
818266
106197062
106419342
131300843
136160157
1753222
25000
1563574
276000
59947
37
-184000
335899
-10823
89338
3325851
536452
-15246
<div> <div>
<p style="text-align: left;"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">NOTE 9 – JOINT VENTURE AGREEMENTS</font></b></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">In October 2009, Dome and AngloGold entered into two joint venture agreements; the Ogooue Joint Venture Agreement and the Ndjole and Mevang Joint Venture Agreement.</font></p></div>
<div> </div><br />
<div>
<p style="text-align: left;"><b><i><font style="font-family: TimesNewRomanPS-BoldItalicMT,Times New Roman,Times,serif;" class="_mt" size="1">Ogooue Joint Venture Agreement</font></i></b></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">AngloGold acquired a reconnaissance license over an area comprising 8,295 square kilometers in Gabon, Africa. This license was acquired by AngloGold for its gold potential. The joint venture is an 80/20 joint venture in favor of AngloGold. AngloGold made a firm commitment to spend $100,000 and solely fund the first $3 million of exploration expenditures, after which the parties will contribute on an 80/20 basis. Joint venture dilution provisions apply whereby if Dome is diluted in the future to a joint venture interest of 5% or less due to lack of contribution to exploration budgets, its interest will be converted to a 2% Net Smelter Return which can be purchased at an appraised value 14 months after commencement of commercial production. Should AngloGold elect not to spend the aforesaid $3 million, the lease shall be assigned to Dome.</font></p>
<p style="text-align: left;"><b><i><font style="font-family: TimesNewRomanPS-BoldItalicMT,Times New Roman,Times,serif;" class="_mt" size="1">Ndjole and Mevang Joint Venture Agreement</font></i></b></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Dome is the owner of the Ndjole and Mevang exploration licenses, each comprised of 2,000 square kilometers. Under the terms of the joint venture, AngloGold earned a 20% interest by paying Dome $400,000 upon signing of the joint venture agreement in October 2009. AngloGold can earn an additional 40% interest by paying Dome $100,000 per year from 2010 through 2012 and by incurring exploration expenditures in the amount of $3.7 million from 2010 through 2012 at the rate of $1 million in the first year, $1.2 million in the second year and $1.5 million in the third year. As of April 30, 2012, AngloGold has incurred exploration expenditures of $5,666,000 and paid Dome two payments of $100,000 each.</font></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Once it has earned a 60% interest, AngloGold can earn an additional 10% interest (70% total) by spending $5 million on exploration expenditures within two years of earning into a 60% interest as set out above. When the parties have a 70/30 joint venture, and if Dome elects not to contribute to work programs and budgets, AngloGold may elect to earn an additional 15% interest (85% total) by carrying the project to a completed pre-feasibility study. Should AngloGold fail to perform as set out above, a 100% interest in the licenses shall revert to Dome and the joint venture will cease. AngloGold shall be entitled to withdraw from the joint venture after it has spent $1 million on exploration expenditures.</font></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Joint venture dilution provisions apply whereby if Dome is diluted in the future to a joint venture interest of 5% or less due to lack of contribution to exploration budgets, its interests will be converted to a 2% Net Smelter Return which can be purchased at appraised value 14 months after commencement of commercial production.</font></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Pursuant to the terms of the joint venture agreement, exploration costs are currently being funded 100% by AngloGold through the Company's wholly owned subsidiary, Dome Gabon SARL. AngloGold will typically fund in advance the exploration costs for the upcoming period. Any funds received in excess of exploration costs are reflected as a payable to joint venture partner on the Company's consolidated balance sheet. As of April 30, 2012, the payable to AngloGold was $523,438.</font></p></div> </div>
4458423
401045
203810
451712
262855
-495859
442276
-16265
40689
68375
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-949890
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4846687
5596669
4500148
3913069
<div> <p style="text-align: left;"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">NOTE 7 – PROPERTY CONCESSIONS</font></b></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">The following is a summary of the Company's property concessions in Sierra Mojada, Mexico and Gabon, Africa as at April 30, 2012 and October 31, 2011, respectively:</font></p>
<div>
<table border="0" cellspacing="0">
<tr><td width="53%"> </td>
<td width="3%"> </td>
<td width="18%"> </td>
<td width="4%"> </td>
<td width="3%"> </td>
<td width="10%"> </td>
<td width="4%"> </td></tr>
<tr valign="bottom"><td align="left"> </td>
<td align="left"> </td>
<td align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Sierra Mojada,</font></b></td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Gabon,</font></b></td>
<td align="left"> </td></tr>
<tr valign="bottom"><td align="left"> </td>
<td align="left"> </td>
<td style="border-bottom: #000000 1px solid; text-indent: 3px;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Mexico</font></b></td>
<td style="border-bottom: #000000 1px solid;" align="center"> </td>
<td align="center"> </td>
<td style="border-bottom: #000000 1px solid;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Africa</font></b></td>
<td style="border-bottom: #000000 1px solid;" align="left"> </td></tr>
<tr><td colspan="7"> </td></tr>
<tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Property Concessions – October 31, 2010</font></td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">4,318,292</font></td>
<td align="left"> </td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">4,396,915</font></td>
<td align="left"> </td></tr>
<tr valign="bottom"><td style="text-indent: 2px;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Acquisitions</font></td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">797,960</font></td>
<td align="left"> </td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">—</font></td>
<td align="left"> </td></tr>
<tr valign="bottom"><td style="text-indent: 2px;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Joint venture agreement payment received (Note 9)</font></td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">—</font></td>
<td align="left"> </td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">(100,000</font></td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">)</font></td></tr>
<tr valign="bottom"><td style="text-indent: 2px;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Foreign currency translation adjustment</font></td>
<td align="left"> </td>
<td style="border-bottom: #000000 1px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">(269,565</font></td>
<td style="border-bottom: #000000 1px solid;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">)</font></td>
<td align="left"> </td>
<td style="border-bottom: #000000 1px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">203,233</font></td>
<td style="border-bottom: #000000 1px solid;" align="left"> </td></tr>
<tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Property Concessions – October 31, 2011</font></td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">4,846,687</font></td>
<td align="left"> </td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">4,500,148</font></td>
<td align="left"> </td></tr>
<tr valign="bottom"><td style="text-indent: 2px;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Acquisitions</font></td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">818,266</font></td>
<td align="left"> </td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">—</font></td>
<td align="left"> </td></tr>
<tr valign="bottom"><td style="text-indent: 2px;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Impairment</font></td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">(68,284</font></td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">)</font></td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">(286,710</font></td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">)</font></td></tr>
<tr valign="bottom"><td style="text-indent: 2px;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Foreign currency translation adjustments</font></td>
<td align="left"> </td>
<td style="border-bottom: #000000 1px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">—</font></td>
<td style="border-bottom: #000000 1px solid;" align="left"> </td>
<td align="left"> </td>
<td style="border-bottom: #000000 1px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">(300,369</font></td>
<td style="border-bottom: #000000 1px solid;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">)</font></td></tr>
<tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Property Concessions – April 30, 2012</font></td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td style="border-bottom: #000000 1px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">5,596,669</font></td>
<td style="border-bottom: #000000 1px solid;" align="left"> </td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td style="border-bottom: #000000 1px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">3,913,069</font></td>
<td style="border-bottom: #000000 1px solid;" align="left"> </td></tr></table></div>
<p style="margin: 0px;"> </p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">During the six months ended April 30, 2012, the Company decided not to pursue further work on the Fortaleza and Ampl. A. Fortaleza concessions. As a result the Company has written off the capitalized property concession balance related to these concessions of $68,284.</font></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">During the six months ended April 30, 2012, the Company and Anglo Gold decided not to pursue further work on Mevang concession. As a result, the Company has written off the capitalized property concession balance related to this concession of $286,710.</font></p> </div>
600702
-808883
-892704
<div> <p style="text-align: left;"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">NOTE 12 – SHAREHOLDER RIGHTS PLAN</font></b></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">On June 11, 2007, the Board of Directors adopted a Shareholders' Right Plan through the adoption of a Rights Agreement, which became effective immediately. In connection with the adoption of the Rights Agreement, the Board of Directors declared a distribution of one Right for each outstanding share of the Company's common stock, payable to shareholders of record at the close of business on June 22, 2007. In accordance with the Rights Plan, one Right is attached to each share of Company common stock issued since that date. Each Right is attached to the underlying common stock and will remain with the common stock if the stock is sold or transferred. As of April 30, 2012, there are 136,160,157 shares outstanding with Rights attached.</font></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">In certain circumstances, in the event that any person acquires beneficial ownership of 20% or more of the outstanding shares of the Company's common stock, each holder of a Right, other than the acquirer, would be entitled to receive, upon payment of the purchase price, which is initially set at $20 per Right, a number of shares of the Company's common stock having a value equal to two times such purchase price. The Rights will expire on June 11, 2017.</font></p> </div>
4769840
43605396
3183955
2083787
6276205
3724068
9346835
9509738
<div> <div>
<p style="text-align: left;"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">NOTE 6 – VALUE-ADDED TAX RECEIVABLE</font></b></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Value-added tax ("IVA") receivable relates to IVA paid in Mexico and Gabon. As a result of IVA collections in Mexico during the six months ended April 30, 2012, the Company estimates net IVA of $2,112,951 will be received within twelve months of the balance sheet date. The remaining net IVA of $476,320 has been classified as long-term.</font></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">During 2008, the Company filed IVA tax returns with the Mexican authorities to recover IVA taxes paid by its Mexican subsidiaries from 2005 through 2008. The Mexican authorities reviewed the IVA tax returns filed and requested the Company provide copies of supporting documentation for amounts filed. During 2008 and 2009, the Company worked extensively with IVA tax consultants and Mexican authorities to provide the requested documentation and answer questions related to these tax returns, but was unable to recover the IVA tax amounts.</font></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">As the result of these difficulties, the Company applied for authorization before the tax authorities to transfer the tax office jurisdiction to Mexico City beginning in the 2012 fiscal year. During December 2011 the Company received this authorization and the Company filed IVA tax returns in Mexico City for calendar years 2007 to 2011 during the six months ended April 30, 2012.</font></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">As of April 30, 2012, the Company has received $951,556 inclusive of interest related to the tax returns filed for calendar years 2007 to 2011. Management evaluated the IVA receivable and decreased the allowance for uncollectible taxes to $MXN 6.9 million or $528,888. The allowance for uncollectible taxes was estimated by management based upon a number of factors including the length of time the returns have been outstanding, general economic conditions in Mexico and estimated net recovery after commissions. During the six months ended April 30, 2012, a recovery of uncollectible IVA of $MXN 10.5 million or $808,883 has been recorded.</font></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">A summary of the changes in the allowance for uncollectible taxes for the six months ended April 30, 2012 is as follows:</font></p></div>
<div> </div><br />
<div>
<div>
<table border="0" cellspacing="0">
<tr><td width="66%"> </td>
<td width="11%"> </td>
<td width="16%"> </td>
<td width="5%"> </td></tr>
<tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Allowance for uncollectible taxes – October 31, 2011</font></td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">1,380,818</font></td>
<td align="left"> </td></tr>
<tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Recovery of uncollectible IVA Taxes</font></td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">(808,883</font></td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">)</font></td></tr>
<tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Foreign currency translation adjustment</font></td>
<td align="left"> </td>
<td style="border-bottom: #000000 1px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">(43,047</font></td>
<td style="border-bottom: #000000 1px solid;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">)</font></td></tr>
<tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Allowance for uncollectible taxes – April 30, 2012</font></td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td style="border-bottom: #000000 1px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">528,888</font></td>
<td style="border-bottom: #000000 1px solid;" align="left"> </td></tr></table></div>
<p style="margin: 0px;"> </p></div> </div>
<div> <div>
<p style="text-align: left;"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">NOTE 15 - WARRANTS</font></b></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">A summary of warrant activity for the six months ended April 30, 2012 is as follows:</font></p>
<div>
<table border="0" cellspacing="0">
<tr><td width="34%"> </td>
<td width="16%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="12%"> </td>
<td width="15%"> </td>
<td width="4%"> </td>
<td width="10%"> </td></tr>
<tr valign="bottom"><td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Weighted</font></b></td>
<td align="left"> </td>
<td align="left"> </td></tr>
<tr valign="bottom"><td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Weighted</font></b></td>
<td align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Average</font></b></td>
<td align="left"> </td>
<td align="left"> </td></tr>
<tr valign="bottom"><td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Average</font></b></td>
<td align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Remaining</font></b></td>
<td align="left"> </td>
<td align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Aggregate</font></b></td></tr>
<tr valign="bottom"><td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Exercise</font></b></td>
<td align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Contractual</font></b></td>
<td align="left"> </td>
<td align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Intrinsic</font></b></td></tr>
<tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 14px;" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Warrants</font></b></td>
<td style="border-bottom: #000000 1px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Shares</font></b></td>
<td style="border-bottom: #000000 1px solid;" align="left"> </td>
<td align="left"> </td>
<td style="border-bottom: #000000 1px solid;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Price</font></b></td>
<td style="border-bottom: #000000 1px solid;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Life (Years)</font></b></td>
<td align="left"> </td>
<td style="border-bottom: #000000 1px solid;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Value</font></b></td></tr>
<tr><td colspan="8"> </td></tr>
<tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Outstanding at November 1, 2011</font></td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">1,803,956</font></td>
<td align="left"> </td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">1.30</font></td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td></tr>
<tr valign="bottom"><td style="text-indent: 1px;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Forfeited or expired</font></td>
<td style="border-bottom: #000000 1px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">(581,000</font></td>
<td style="border-bottom: #000000 1px solid;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">)</font></td>
<td align="left"> </td>
<td style="border-bottom: #000000 1px solid;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">3.00</font></td>
<td style="border-bottom: #000000 1px solid;" align="left"> </td>
<td align="left"> </td>
<td style="border-bottom: #000000 1px solid;" align="left"> </td></tr>
<tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Outstanding at April 30, 2012</font></td>
<td style="border-bottom: #000000 1px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">1,222,956</font></td>
<td style="border-bottom: #000000 1px solid;" align="left"> </td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td style="border-bottom: #000000 1px solid;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">0.49</font></td>
<td style="border-bottom: #000000 1px solid;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">0.28</font></td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td style="border-bottom: #000000 1px solid;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">63,318</font></td></tr>
<tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Exercisable at April 30, 2012</font></td>
<td style="border-bottom: #000000 3px double;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">1,222,956</font></td>
<td style="border-bottom: #000000 3px double;" align="left"> </td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td style="border-bottom: #000000 3px double;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">0.49</font></td>
<td style="border-bottom: #000000 3px double;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">0.28</font></td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td style="border-bottom: #000000 3px double;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">63,318</font></td></tr></table></div>
<p style="margin: 0px;"> </p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">No warrants were exercised during the six months ended April 30, 2012.</font></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">During the six months ended April 30, 2011, warrants to acquire 1,333,353 shares of common stock with an intrinsic value of $775,712 were exercised at an average exercise price of $0.50 per share.</font></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Summarized information about warrants outstanding and exercisable at April 30, 2012 is as follows:</font></p></div>
<div> </div><br />
<div>
<div>
<table border="0" cellspacing="0">
<tr><td width="2%"> </td>
<td width="14%"> </td>
<td width="17%"> </td>
<td width="15%"> </td>
<td width="3%"> </td>
<td width="13%"> </td>
<td width="18%"> </td>
<td width="4%"> </td>
<td width="10%"> </td></tr>
<tr valign="bottom"><td align="center"> </td>
<td style="border-bottom: #000000 1px solid;" colspan="3" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Warrants Outstanding</font></b></td>
<td style="border-bottom: #000000 1px solid;" align="center"> </td>
<td style="border-bottom: #000000 1px solid;" colspan="4" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Warrants Exercisable</font></b></td></tr>
<tr><td colspan="9" align="center"> </td></tr>
<tr valign="bottom"><td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Weighted</font></b></td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td></tr>
<tr valign="bottom"><td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Ave.</font></b></td>
<td align="center"> </td>
<td align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Weighted</font></b></td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Weighted</font></b></td></tr>
<tr valign="bottom"><td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Remaining</font></b></td>
<td align="center"> </td>
<td align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Average</font></b></td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Average</font></b></td></tr>
<tr valign="bottom"><td align="center"> </td>
<td align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Exercise</font></b></td>
<td style="text-indent: 2px;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Number</font></b></td>
<td align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Contractual</font></b></td>
<td align="center"> </td>
<td align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Exercise</font></b></td>
<td style="text-indent: 1px;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Number</font></b></td>
<td align="center"> </td>
<td align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Exercise</font></b></td></tr>
<tr valign="bottom"><td align="center"> </td>
<td style="border-bottom: #000000 1px solid;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Price</font></b></td>
<td style="border-bottom: #000000 1px solid;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Outstanding</font></b></td>
<td style="border-bottom: #000000 1px solid;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Life (Years)</font></b></td>
<td align="center"> </td>
<td style="border-bottom: #000000 1px solid;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Price</font></b></td>
<td style="border-bottom: #000000 1px solid;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Exercisable</font></b></td>
<td style="border-bottom: #000000 1px solid;" align="center"> </td>
<td style="border-bottom: #000000 1px solid;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Price</font></b></td></tr>
<tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td style="border-bottom: #000000 3px double;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">0.34 – 0.50</font></td>
<td style="border-bottom: #000000 3px double; text-indent: 2px;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">1,222,956</font></td>
<td style="border-bottom: #000000 3px double;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">0.28</font></td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td style="border-bottom: #000000 3px double;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">0.49</font></td>
<td style="border-bottom: #000000 3px double;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">1,222,956</font></td>
<td style="border-bottom: #000000 3px double;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td style="border-bottom: #000000 3px double;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">0.49</font></td></tr></table></div>
<p style="margin: 0px;"> </p></div> </div>
798679
899547
874605
360941
973457
880653
198451
33799
105201435
115839441
1380818
0
0
528888
-2112951
35214161
38489409
4647975
9221208
20433865
19027970
2618548
10570598
6071197
4239899
6558718
<div> <p style="text-align: left;"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">NOTE 5 – RESTRICTED CASH</font></b></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">At April 30, 2012 and October 31, 2011, the Company has $44,227 and $77,068 respectively of restricted cash which is classified as a current asset. The restricted cash represents cash contributed by AngloGold Ashanti Limited ("AngloGold") for use exclusively on exploration costs related to the joint venture agreements with AngloGold (Note 9).</font></p> </div>
6558718
-4499401
2318819
<div> <p style="text-align: left;"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">NOTE 17 - COMMITMENTS AND CONTINGENCIES</font></b></p>
<p style="text-align: left;"><u><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Compliance with Environmental Regulations</font></u></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">The Company's activities are subject to laws and regulations controlling not only the exploration and mining of mineral properties, but also the effect of such activities on the environment. Compliance with such laws and regulations may necessitate additional capital outlays; affect the economics of a project, and cause changes or delays in the Company's activities.</font></p>
<p style="text-align: left;"><u><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Employment Agreements</font></u></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Effective September 2, 2011, the Company entered into an amended and restated employment agreement with Mr. Edgar that revised the change in control provision. The amended and restated employment agreement provides that Mr. Edgar is entitled to written notice of termination for 12 months if Mr. Edgar is terminated without cause. Further upon a change of control (which is defined in the amended and restated employment agreement), Mr. Edgar is entitled to receive a severance payment equal to 12 months of his base salary ($CDN 7,500 per month) plus the previous year bonus, if Mr. Edgar terminates his employment within three months of such change in control.</font></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">On September 2, 2011 (although effective June 1, 2011), the Company entered into an amended and restated employment agreement with Mr. Barry, that provides for base compensation of $CDN 18,000 per month (or $CDN 216,000 annually) and a potential bonus of $CDN 30,000 if certain performance targets are met. The amended and restated employment agreement provides that Mr. Barry is entitled to written notice of termination for up to 12 months if Mr. Barry meets certain employment terms and is terminated without cause. Further upon a change of control (which is defined in the amended and restated employment agreement), Mr. Barry is entitled to receive a severance payment of up to 18 months of his base salary plus the previous year bonus, if Mr. Barry terminates his employment within three months of such change in control.</font></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">On June 6, 2012, the Company entered into an amended and restated employment agreement with Sean Fallis that provides for an annual base salary effective May 1, 2012 of $CDN 165,000. The amended and restated employment agreement provides that Mr. Fallis is entitled to written notice of termination for up to six months if Mr. Fallis meets certain employment terms and is terminated without cause. Further upon a change of control (which is defined in the amended and restated employment agreement), Mr. Fallis is entitled to receive a severance payment of equal to 12 months of his base salary plus the previous year bonus, if Mr. Fallis terminates his employment within three months of such change in control.</font></p>
<div> </div><br />
<p style="text-align: left;"> </p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">On August 4, 2011, the Company entered into an amended and restated independent contractor agreement with Jason Cunliffe, as the newly appointed Vice President of Exploration. Pursuant to the agreement Mr. Cunliffe will receive a base consulting rate of $700 per day for each day worked and a potential annual bonus of $20,000 if certain performance targets are met. The amended and restated independent contractor agreement continues on a month-to-month basis and can be terminated by either party with 30 days advance notice. Further upon a change of control (which is defined in the amended and restated independent contractor agreement), Mr. Cunliffe is entitled to receive a severance payment of up to 240 days of his base consulting rate, if Mr. Cunliffe terminates his contract within three months of such change in control. On May 15, 2012, the independent contractor agreement between the Company and Mr. Cunliffe was terminated, effective as of July 4, 2012. Following that date, Mr. Cunliffe will cease serving as the Company's Vice President of Exploration.</font></p>
<p style="text-align: left;"><u><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Property Concessions Mexico</font></u></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">To properly maintain property concessions in Mexico, the Company is required to pay a semi-annual fee to the Mexican government and complete annual assessment work.</font></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">In addition thirteen of the concessions in the Sierra Mojada project are subject to options to purchase from existing third party concession owners. The agreements are considered option purchase agreements and give the Company the option, but not the obligation, to acquire the concessions at established prices. Pursuant to the option purchase agreements, the Company is required to make certain payments over the terms of these contracts. The payments required to obtain full ownership of these concessions are set forth in the table below:</font></p>
<p style="text-align: left;"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">Olympia (1 concession)</font></b></p>
<div>
<table style="width: 465px; height: 101px;" border="0" cellspacing="0">
<tr><td width="50%" align="left"> </td>
<td width="49%" align="left"> </td></tr>
<tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="50%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Payment Date</font></td>
<td style="border-bottom: #000000 1px solid;" width="49%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Payment Amount</font></td></tr>
<tr valign="bottom"><td width="50%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">August 2012</font></td>
<td width="49%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$MXN $250,000</font></td></tr>
<tr valign="bottom"><td width="50%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">February 2013</font></td>
<td width="49%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$MXN $470,000</font></td></tr>
<tr valign="bottom"><td width="50%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">August 2013</font></td>
<td width="49%" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$MXN $1,000,000</font></td></tr></table></div>
<p style="margin: 0px;"> </p>
<p style="text-align: left;"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">Maravillas, Ampl. Sierra Mojada and Sierra Mojada (3 concessions)</font></b></p>
<div>
<table style="width: 469px; height: 120px;" border="0" cellspacing="0">
<tr><td width="50%"> </td>
<td width="49%"> </td></tr>
<tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="50%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Payment Date</font></td>
<td style="border-bottom: #000000 1px solid;" width="49%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Payment Amount</font></td></tr>
<tr valign="bottom"><td width="50%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">April 2013</font></td>
<td width="49%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$MXN $800,000</font></td></tr>
<tr valign="bottom"><td width="50%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">October 2013</font></td>
<td width="49%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$MXN $1,800,000</font></td></tr>
<tr valign="bottom"><td width="50%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">April 2014</font></td>
<td width="49%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$MXN $2,400,000</font></td></tr>
<tr valign="bottom"><td width="50%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">April 2015</font></td>
<td width="49%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$MXN $6,000,000</font></td></tr></table></div>
<p style="margin: 0px;"> </p>
<p style="text-align: left;"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">Nuevo Dulces Nombres (Centenario) and Yolanda III (2 concessions)</font></b></p>
<div>
<table style="width: 668px; height: 170px;" border="0" cellspacing="0">
<tr><td width="50%"> </td>
<td width="1%"> </td>
<td width="46%"> </td></tr>
<tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="50%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Payment Date</font></td>
<td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td>
<td style="border-bottom: #000000 1px solid;" width="46%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Payment Amount</font><sup><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">(1)</font></sup></td></tr>
<tr valign="bottom"><td width="50%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Anticipated Third Quarter 2012</font><sup><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">(2)</font></sup></td>
<td width="1%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td>
<td width="46%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">430,000</font></td></tr>
<tr><td width="97%" colspan="3"> </td></tr>
<tr valign="bottom"><td width="50%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Beginning 24 months after the initial</font></td>
<td width="1%" align="right"> </td>
<td width="46%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$20,000 per month</font></td></tr>
<tr valign="bottom"><td width="50%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">payment date and ending 48 months</font></td>
<td width="1%" align="right"> </td>
<td width="46%" align="left"> </td></tr>
<tr valign="bottom"><td width="50%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">after the initial payment date</font></td>
<td width="1%" align="right"> </td>
<td width="46%" align="left"> </td></tr></table></div>
<p style="margin: 0px;"> </p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">(1) 48 months after the initial payment date, Silver Bull has the option of acquiring Nuevo Dulces Nombres (100% interest) for $4 million and Yolanda III (100% interest) for $2 million.</font></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">(2) Initial payment less advances is expected to be paid in the third quarter of the 2012 fiscal year.</font></p>
<div> </div><br />
<p style="text-align: left;"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">Poder de Dios, Anexas a Poder de Dios, and Ampliacion a Poder de Dios (3 concessions)</font></b></p>
<div>
<table style="width: 559px; height: 173px;" border="0" cellspacing="0">
<tr><td width="25%"> </td>
<td width="4%"> </td>
<td width="36%"> </td>
<td width="34%"> </td></tr>
<tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Payment Date</font></td>
<td style="border-bottom: #000000 1px solid;" align="right"> </td>
<td style="border-bottom: #000000 1px solid;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Payment Amount</font></td>
<td style="border-bottom: #000000 1px solid;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Option Purchase Price</font><sup><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">(1)</font></sup></td></tr>
<tr valign="bottom"><td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">October 2012</font></td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td>
<td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">300,000</font></td>
<td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$4 million</font></td></tr>
<tr valign="bottom"><td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">April 2013</font></td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td>
<td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">300,000</font></td>
<td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$5 million</font></td></tr>
<tr valign="bottom"><td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">October 2013</font></td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td>
<td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">300,000</font></td>
<td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$5 million</font></td></tr>
<tr valign="bottom"><td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">April 2014</font></td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td>
<td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">300,000</font></td>
<td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$6 million</font></td></tr>
<tr valign="bottom"><td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">October 2014</font></td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td>
<td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">300,000</font></td>
<td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$6 million</font></td></tr>
<tr valign="bottom"><td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">April 2015</font><sup><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">(2)</font></sup></td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td>
<td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">300,000</font></td>
<td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$7 million</font></td></tr></table></div>
<p style="margin: 0px;"> </p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">(1) Payments shown in the second column are required to maintain the option. Payments shown in the third column reflect the purchase price at that point in time for the acquisition of 100% of the concessions. Upon payment of the option purchase price, no subsequent payments are required.</font></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">(2) After April 2015, Silver Bull must pay $300,000 every 6 months in order to maintain the option-purchase agreement. During this period, Silver Bull has the option of acquiring Poder de Dios, Anexas a Poder de Dios, and Ampliacion a Poder de Dios (100% interest) for $7 million.</font></p>
<p style="text-align: left;"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">Veta Rica o La Inglesa (1 concession)</font></b></p>
<div>
<table style="width: 520px; height: 86px;" border="0" cellspacing="0">
<tr><td width="46%"> </td>
<td width="1%"> </td>
<td width="52%"> </td></tr>
<tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="46%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Payment Date</font></td>
<td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td>
<td style="border-bottom: #000000 1px solid;" width="52%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Payment Amount</font></td></tr>
<tr valign="bottom"><td width="46%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">April 2013</font></td>
<td width="1%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td>
<td width="52%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">300,000</font></td></tr>
<tr valign="bottom"><td width="46%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">April 2014</font></td>
<td width="1%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td>
<td width="52%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">300,000</font></td></tr></table></div>
<p style="margin: 0px;"> </p>
<p style="text-align: left;"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">La Perla, La India, and La India Dos (3 concessions)</font></b></p>
<div>
<table style="width: 728px; height: 90px;" border="0" cellspacing="0">
<tr><td width="26%"> </td>
<td width="1%"> </td>
<td width="37%"> </td>
<td width="35%"> </td></tr>
<tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="26%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Payment Date</font></td>
<td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td>
<td style="border-bottom: #000000 1px solid;" width="37%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Payment Amount</font></td>
<td style="border-bottom: #000000 1px solid;" width="35%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Option Purchase Price</font><sup><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">(1)</font></sup></td></tr>
<tr valign="bottom"><td width="26%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">April 2013</font></td>
<td width="1%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td>
<td width="37%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">400,000</font></td>
<td width="35%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$4 million</font></td></tr>
<tr valign="bottom"><td width="26%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">April 2014</font></td>
<td width="1%" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$</font></td>
<td width="37%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">500,000</font></td>
<td width="35%" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">$5 million</font></td></tr></table></div>
<p style="margin: 0px;"> </p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">(1) Payments shown in the second column are required to maintain the option. Payments shown in the third column reflect the purchase price at that point in time for the acquisition of 100% of the concessions. Upon payment of the option purchase price, no subsequent payments are required.</font></p>
<p style="text-align: left;"><u><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Property Concessions Gabon</font></u></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">The Company holds title to several property concessions in Gabon, Africa that require the Company to spend minimal amounts each term to renew the licenses. Each license is renewable twice with each renewal lasting for three years. The Company must spend 200,000,000 $CFA in order to renew each exploration license for a second term of three years and 400,000,000 $CFA in order to renew the license for a third term of three years. The Company must spend 800,000,000 $CFA in the third term. The Company may apply for a mining license at any time during these periods. The initial term of these exploration licenses expired on September 18, 2011. The Company applied for renewal in June of 2011 as it had met the necessary expenditure requirements and expects to receive the renewal approval in 2012. As of April 30, 2012, one U.S. dollar approximates $CFA 505.</font></p>
<p style="text-align: left;"><u><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Drilling Agreement</font></u></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">The Company entered into drilling agreements with two companies for a minimum of 25,000 meters of drilling at the Sierra Mojada Property. The remaining drilling commitment under these agreements was equal to $573,000 at April 30, 2012.</font></p>
<div> </div><br />
<p style="text-align: left;"><u><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">Office Lease Commitment</font></u></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="2">The Company entered into a five-year office lease agreement from April 1, 2012 to March 31, 2017 for the Company's corporate office in Vancouver, Canada. The monthly lease payment is $CDN 7,506 until March 31, 2014, increasing to $CDN 7,743 on April 1, 2014 with a further increase to $CDN 7,981 on April 1, 2016. As of April 30, 2012, one U.S. dollar approximates $CDN 0.99.</font></p> </div>
0.01
0.01
300000000
300000000
115110157
0
115110157
0
1151101
1361601
-80389588
-3127818
-1328664
-7154264
-3401572
262228
6674
3245
1448
1133
1844014
117143
58141
422013
317685
2077961
76093
426823
<div> <div>
<p style="text-align: left;"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">NOTE 14 - STOCK OPTIONS</font></b></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">The Company has adopted two active stock option plans. Under the 2006 Stock Option Plan (the "2006 Plan") the Company may grant non-statutory and incentive options to employees, directors and consultants for up to a total of 5,000,000 shares of common stock. Under the 2010 Stock Option and Stock Bonus Plan (the "2010 Plan"), the lesser of (i) 30,000,000 shares or (ii) 10% of the total shares outstanding are reserved for issuance upon the exercise of options or the grant of stock bonuses.</font></p></div>
<div> </div><br />
<div>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Options are typically granted with an exercise price equal to the closing market price of the Company's stock at the date of grant, have a graded vesting schedule over approximately 2 to 3 years and have a contractual term of 5 to 10 years.</font></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">A summary of the range of assumptions used to value stock options granted for the six months ended April 30, 2012 and 2011 are as follows:</font></p>
<div>
<table border="0" cellspacing="0">
<tr><td width="43%"> </td>
<td width="34%"> </td>
<td width="22%"> </td></tr>
<tr valign="bottom"><td align="left"> </td>
<td colspan="2" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Six months Ended</font></b></td></tr>
<tr valign="bottom"><td align="left"> </td>
<td style="border-bottom: #000000 1px solid;" colspan="2" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">April 30,</font></b></td></tr>
<tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 12px;" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Options</font></b></td>
<td style="border-bottom: #000000 1px solid;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">2012</font></b></td>
<td style="border-bottom: #000000 1px solid;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">2011</font></b></td></tr>
<tr><td colspan="3"> </td></tr>
<tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Expected volatility</font></td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">72% - 104%</font></td>
<td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">103% - 116%</font></td></tr>
<tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Risk-free interest rate</font></td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">0.29% - 0.63%</font></td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">0.88% -1.53%</font></td></tr>
<tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Dividend yield</font></td>
<td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">—</font></td>
<td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">—</font></td></tr>
<tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Expected term (in years)</font></td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">2.50 - 3.50</font></td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">2.50 – 3.50</font></td></tr></table></div>
<p style="margin: 0px;"> </p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">During the six months ended April 30, 2012, the Company granted options to acquire 2,560,000 shares of common stock with a weighted-average grant-date fair value of $0.31. No options were exercised during the six months ended April 30, 2012.</font></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">During the six months ended April 30, 2011, options to acquire 265,046 shares of common stock were exercised at an average exercise price of $0.57 per share. The options had an intrinsic value of $141,826 at the time of exercise. Also during the six months ended April 30, 2011, the Company granted options to acquire 1,255,000 shares of common stock with a weighted-average grant-date fair value of $0.73.</font></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">The following is a summary of stock option activity for the six months ended April 30, 2012:</font></p>
<div>
<table border="0" cellspacing="0">
<tr><td width="34%"> </td>
<td width="14%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="12%"> </td>
<td width="15%"> </td>
<td width="3%"> </td>
<td width="11%"> </td></tr>
<tr valign="bottom"><td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Weighted</font></b></td>
<td align="left"> </td>
<td align="left"> </td></tr>
<tr valign="bottom"><td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Weighted</font></b></td>
<td align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Average</font></b></td>
<td align="left"> </td>
<td align="left"> </td></tr>
<tr valign="bottom"><td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Average</font></b></td>
<td align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Remaining</font></b></td>
<td align="left"> </td>
<td align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Aggregate</font></b></td></tr>
<tr valign="bottom"><td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Exercise</font></b></td>
<td align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Contractual</font></b></td>
<td align="left"> </td>
<td align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Intrinsic</font></b></td></tr>
<tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 13px;" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Options</font></b></td>
<td style="border-bottom: #000000 1px solid;" align="right"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Shares</font></b></td>
<td style="border-bottom: #000000 1px solid;" align="left"> </td>
<td align="left"> </td>
<td style="border-bottom: #000000 1px solid;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Price</font></b></td>
<td style="border-bottom: #000000 1px solid;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Life (Years)</font></b></td>
<td align="left"> </td>
<td style="border-bottom: #000000 1px solid;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Value</font></b></td></tr>
<tr><td colspan="8"> </td></tr>
<tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Outstanding at November 1, 2011</font></td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">4,551,908</font></td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">1.06</font></td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td></tr>
<tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Granted</font></td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">2,560,000</font></td>
<td align="left"> </td>
<td align="left"> </td>
<td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">0.56</font></td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td></tr>
<tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Forfeited or cancelled</font></td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">(776,668</font></td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">)</font></td>
<td align="left"> </td>
<td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">2.04</font></td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td></tr>
<tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Expired</font></td>
<td style="border-bottom: #000000 1px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">—</font></td>
<td style="border-bottom: #000000 1px solid;" align="left"> </td>
<td align="left"> </td>
<td style="border-bottom: #000000 1px solid;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">—</font></td>
<td style="border-bottom: #000000 1px solid;" align="left"> </td>
<td align="left"> </td>
<td style="border-bottom: #000000 1px solid;" align="left"> </td></tr>
<tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Outstanding at April 30, 2012</font></td>
<td style="border-bottom: #000000 1px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">6,335,240</font></td>
<td style="border-bottom: #000000 1px solid;" align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td style="border-bottom: #000000 1px solid;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">0.74</font></td>
<td style="border-bottom: #000000 1px solid;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">3.86</font></td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td style="border-bottom: #000000 1px solid; text-indent: 8px;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">—</font></td></tr>
<tr><td colspan="8"> </td></tr>
<tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Vested or Expected to Vest at April</font></td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td></tr>
<tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">30, 2012</font></td>
<td style="border-bottom: #000000 1px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">6,335,240</font></td>
<td style="border-bottom: #000000 1px solid;" align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td style="border-bottom: #000000 1px solid;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">0.74</font></td>
<td style="border-bottom: #000000 1px solid;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">3.86</font></td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td style="border-bottom: #000000 1px solid; text-indent: 8px;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">—</font></td></tr>
<tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Exercisable at April 30, 2012</font></td>
<td style="border-bottom: #000000 1px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">3,665,230</font></td>
<td style="border-bottom: #000000 1px solid;" align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td style="border-bottom: #000000 1px solid;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">0.80</font></td>
<td style="border-bottom: #000000 1px solid;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">3.50</font></td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td style="border-bottom: #000000 1px solid; text-indent: 8px;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">—</font></td></tr></table></div>
<p style="margin: 0px;"> </p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">The Company recognized stock-based compensation costs for stock options of $630,732 and $661,177 for the six months ended April 30, 2012 and 2011, respectively. The Company typically does not recognize any tax benefits for stock options due to the Company's recurring losses. The Company currently expects all outstanding options to vest. Compensation cost is revised if subsequent information indicates that the actual number of options vested is likely to differ from previous estimates.</font></p></div>
<div> </div><br />
<div>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Summarized information about stock options outstanding and exercisable at April 30, 2012 is as follows:</font></p>
<div>
<table border="0" cellspacing="0">
<tr><td width="2%"> </td>
<td width="15%"> </td>
<td width="17%"> </td>
<td width="15%"> </td>
<td width="3%"> </td>
<td width="13%"> </td>
<td width="16%"> </td>
<td width="3%"> </td>
<td width="10%"> </td></tr>
<tr valign="bottom"><td align="left"> </td>
<td style="border-bottom: #000000 1px solid;" colspan="3" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Options Outstanding</font></b></td>
<td style="border-bottom: #000000 1px solid;" align="center"> </td>
<td style="border-bottom: #000000 1px solid;" colspan="4" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Options Exercisable</font></b></td></tr>
<tr valign="bottom"><td align="left"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Weighted</font></b></td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td></tr>
<tr valign="bottom"><td align="left"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Ave.</font></b></td>
<td align="center"> </td>
<td align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Weighted</font></b></td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Weighted</font></b></td></tr>
<tr valign="bottom"><td align="left"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Remaining</font></b></td>
<td align="center"> </td>
<td align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Average</font></b></td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Average</font></b></td></tr>
<tr valign="bottom"><td align="left"> </td>
<td align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Exercise</font></b></td>
<td align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Number</font></b></td>
<td align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Contractual</font></b></td>
<td align="center"> </td>
<td align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Exercise</font></b></td>
<td align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Number</font></b></td>
<td align="center"> </td>
<td align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Exercise</font></b></td></tr>
<tr valign="bottom"><td align="left"> </td>
<td style="border-bottom: #000000 1px solid;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Price</font></b></td>
<td style="border-bottom: #000000 1px solid;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Outstanding</font></b></td>
<td style="border-bottom: #000000 1px solid;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Life (Years)</font></b></td>
<td align="center"> </td>
<td style="border-bottom: #000000 1px solid;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Price</font></b></td>
<td style="border-bottom: #000000 1px solid;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Exercisable</font></b></td>
<td align="center"> </td>
<td style="border-bottom: #000000 1px solid;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Price</font></b></td></tr>
<tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td style="text-indent: 1px;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">0.54 - 0.73</font></td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">5,201,666</font></td>
<td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">3.98</font></td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">0.63</font></td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">2,783,323</font></td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">0.66</font></td></tr>
<tr valign="bottom"><td align="left"> </td>
<td style="text-indent: 1px;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">1.00 - 1.20</font></td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">1,005,000</font></td>
<td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">3.09</font></td>
<td align="left"> </td>
<td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">1.10</font></td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">753,333</font></td>
<td align="left"> </td>
<td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">1.10</font></td></tr>
<tr valign="bottom"><td align="left"> </td>
<td style="border-bottom: #000000 1px solid;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">2.18</font></td>
<td style="border-bottom: #000000 1px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">128,574</font></td>
<td style="border-bottom: #000000 1px solid;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">5.10</font></td>
<td align="left"> </td>
<td style="border-bottom: #000000 1px solid;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">2.18</font></td>
<td style="border-bottom: #000000 1px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">128,574</font></td>
<td align="left"> </td>
<td style="border-bottom: #000000 1px solid;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">2.18</font></td></tr>
<tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td style="border-bottom: #000000 3px double;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">0.54 - 2.18</font></td>
<td style="border-bottom: #000000 3px double;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">6,335,240</font></td>
<td style="border-bottom: #000000 3px double;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">3.86</font></td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td style="border-bottom: #000000 3px double;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">0.74</font></td>
<td style="border-bottom: #000000 3px double;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">3,665,230</font></td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td style="border-bottom: #000000 3px double;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">0.80</font></td></tr></table></div>
<p style="margin: 0px;"> </p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">A summary of the non-vested shares as of April 30, 2012 and changes during the six months ended April 30, 2012 is as follows:</font></p>
<div>
<table border="0" cellspacing="0">
<tr><td width="46%"> </td>
<td width="28%"> </td>
<td width="4%"> </td>
<td width="6%"> </td>
<td width="14%"> </td></tr>
<tr valign="bottom"><td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Weighted-</font></b></td></tr>
<tr valign="bottom"><td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Average</font></b></td></tr>
<tr valign="bottom"><td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Grant-Date</font></b></td></tr>
<tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 12px;" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Nonvested Shares</font></b></td>
<td style="border-bottom: #000000 1px solid;" align="left"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Shares</font></b></td>
<td style="border-bottom: #000000 1px solid;" align="left"> </td>
<td align="left"> </td>
<td style="border-bottom: #000000 1px solid;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Fair Value</font></b></td></tr>
<tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Nonvested at November 1, 2011</font></td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">1,520,005</font></td>
<td align="left"> </td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">0.56</font></td></tr>
<tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Granted</font></td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">2,560,000</font></td>
<td align="left"> </td>
<td align="left"> </td>
<td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">0.31</font></td></tr>
<tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Vested</font></td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">(1,329,994</font></td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">)</font></td>
<td align="left"> </td>
<td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">0.40</font></td></tr>
<tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Forfeited</font></td>
<td style="border-bottom: #000000 1px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">(80,001</font></td>
<td style="border-bottom: #000000 1px solid;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">)</font></td>
<td align="left"> </td>
<td style="border-bottom: #000000 1px solid;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">0.35</font></td></tr>
<tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Nonvested at April 30, 2012</font></td>
<td style="border-bottom: #000000 1px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">2,670,010</font></td>
<td style="border-bottom: #000000 1px solid;" align="left"> </td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td style="border-bottom: #000000 1px solid;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">0.41</font></td></tr></table></div>
<p style="margin: 0px;"> </p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">As of April 30, 2012, there was $593,993 of total unrecognized compensation costs related to non-vested share based compensation arrangements granted under the qualified stock option plans. That cost is expected to be recognized over a weighted average period of 0.55 years.</font></p></div> </div>
541913
523438
-0.03
-0.01
-0.05
-0.02
<div> <p style="text-align: left;"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">NOTE 4 – LOSS PER SHARE</font></b></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">The Company has stock options and warrants in the aggregate of 7,558,196 shares and 7,832,806 shares outstanding at April 30, 2012 and 2011. They were not included in the calculation of loss per share because they would have been considered anti-dilutive.</font></p> </div>
-387931
-18300
-20161
41761382
3066812
2025646
5854192
3406383
<div> <div>
<p style="text-align: left;"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">NOTE 16 – FINANCIAL INSTRUMENTS</font></b><br /><br /><u><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Fair Value Measurements</font></u></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">All financial assets and financial liabilities are recorded at fair value on initial recognition. Transaction costs are expensed when they are incurred, unless they are directly attributable to the acquisition of qualifying assets, in which case they are added to the costs of those assets until such time as the assets are substantially ready for their intended use or sale.</font></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">The three levels of the fair value hierarchy are as follows:</font></p>
<div>
<table border="0" cellspacing="0">
<tr><td width="8%"> </td>
<td width="91%"> </td></tr>
<tr valign="top"><td width="8%">
<p><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Level 1</font></p></td>
<td width="91%">
<p><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;</font></p></td></tr>
<tr><td colspan="2"> </td></tr>
<tr valign="top"><td width="8%">
<p><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Level 2</font></p></td>
<td width="91%">
<p><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability;</font></p></td></tr>
<tr><td colspan="2"> </td></tr>
<tr valign="top"><td width="8%">
<p><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Level 3</font></p></td>
<td width="91%">
<p><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).</font></p></td></tr></table></div>
<p style="margin: 0px;"> </p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Under fair value accounting, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. As of April 30, 2012 and October 31, 2011, the Company had no financial or non-financial assets or liabilities required to be reported for fair value purposes.</font></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">The carrying amounts of the Company's financial instruments, including cash and cash equivalents, restricted cash, other receivables, accounts payable, accrued liabilities and expenses approximate fair value at April 30, 2012 and October 31, 2011 due to the short maturities of these financial instruments.</font></p>
<p style="text-align: left;"><u><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Credit Risk</font></u></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Credit risk is the risk that the counterparty to a financial instrument will cause a financial loss for the Company by failing to discharge its obligations. To mitigate exposure to credit risk on financial assets the Company has established policies to ensure liquidity of funds and ensure counterparties demonstrate minimum acceptable credit worthiness.</font></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">The Company maintains its US Dollar and Canadian Dollar ("$CDN") cash and cash equivalents in bank and demand deposit accounts with major financial institutions with high credit standings. Cash deposits held in the United States are insured by the Federal Deposit Insurance Corporation ("FDIC") for up to $250,000 and $CDN cash deposits held in Canada are insured by the Canada Deposit Insurance Corporation ("CDIC") for up to $CDN 100,000. Certain United States and Canadian bank accounts held by the Company exceed these federally insured limits or are uninsured as they related to US Dollar deposits held in Canadian financial institutions. As of April 30, 2012 and October 31, 2011, the Company's cash and cash equivalent balances held in United States and Canadian financial institutions included $6,084,817 and $4,008,674 respectively, which was not insured by the FDIC or CDIC. The Company has not experienced any losses on such accounts and management believes that using major financial institutions with high credit ratings mitigates the credit risk in cash.</font></p></div>
<div> </div><br />
<div>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">The Company also maintains cash in bank accounts in Mexico and Gabon. These accounts are denominated in the local currency and are considered uninsured. As of April 30, 2012 and October 31, 2011, the US dollar equivalent balance for these accounts was $126,032 and $116,451, respectively.</font></p>
<p style="text-align: left;"><u><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Interest Rate Risk</font></u></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">The Company holds substantially all of the Company's cash and cash equivalents in bank and demand deposit accounts with major financial institutions. The interest rates received on these balances may fluctuate with changes in economic conditions. Based on the average cash and cash equivalent and restricted cash balances during the six months ended April 30, 2012, a 1% decrease in interest rates would have resulted in a reduction in interest income for the period of approximately $1,880.</font></p>
<p style="text-align: left;"><u><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Foreign Currency Exchange Risk</font></u></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Certain purchases of labor, operating supplies and capital assets are denominated in $CDN, $MXN, Central African Francs ("$CFA") or other currencies. As a result, currency exchange fluctuations may impact the costs of our operations. Specifically, the appreciation of the $MXN, $CDN or $CFA against the US dollar may result in an increase in operating expenses and capital costs in US dollar terms. To reduce this risk as of April 30, 2012, the Company maintains minimum cash balances in $CFA and $MXN. As of April 30, 2012, the Company maintained the majority of its cash balance in $US dollar. The Company currently does not engage in any currency hedging activities.</font></p></div> </div>
-3002583
1974645
1690077
-165351
22609
-2973608
1898829
-145332
34623601
2028052
1217851
771151
-111561
18495031
18495031
<div> <p style="text-align: left;"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">NOTE 10 – GOODWILL</font></b></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Goodwill represents the excess, at the date of acquisition, of the purchase price of the business acquired over the fair value of the net tangible and intangible assets acquired. As at April 30, 2012, the Company performed the annual goodwill impairment test. The first step of the impairment test resulted in the fair value of the reporting unit exceeding the carrying value of the net assets. Therefore the Company did not proceed to step two of the impairment test.</font></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">The following is a summary of the Company's goodwill balance as at April 30, 2012 and October 31, 2011, respectively:</font></p>
<div>
<table border="0" cellspacing="0">
<tr><td width="59%"> </td>
<td width="21%"> </td>
<td width="14%"> </td>
<td width="4%"> </td></tr>
<tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Goodwill – October 31, 2010</font></td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">19,738,862</font></td>
<td align="left"> </td></tr>
<tr valign="bottom"><td style="text-indent: 2px;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Foreign currency translation adjustment</font></td>
<td align="left"> </td>
<td style="border-bottom: #000000 1px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">(1,243,831</font></td>
<td style="border-bottom: #000000 1px solid;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">)</font></td></tr>
<tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Goodwill – October 31, 2011</font></td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td style="border-bottom: #000000 1px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">18,495,031</font></td>
<td style="border-bottom: #000000 1px solid;" align="left"> </td></tr>
<tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Goodwill – April 30, 2012</font></td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td style="border-bottom: #000000 3px double;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">18,495,031</font></td>
<td style="border-bottom: #000000 3px double;" align="left"> </td></tr></table></div>
<p style="margin: 0px;"> </p> </div>
-80217657
-3164740
-1557578
-6912964
-3324438
186419
45855
205730
23387
19499
76648
71686
665821
188078
101228
419224
359091
-502899
23256
5665
12004
7649
153653
-9562
84587
48024
-5229
-27815
286771
1000805
29491
6051
65907
62528
16259431
970235
699497
472968
198055
35214161
38489409
2223039
1804045
<div> <p style="text-align: left;"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">NOTE 1 – ORGANIZATION, DESCRIPTION OF BUSINESS</font></b></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Silver Bull Resources, Inc. (the "Company") was incorporated in the State of Nevada on November 8, 1993 as the Cadgie Company for the purpose of acquiring and developing mineral properties. The Cadgie Company was a spinoff from its predecessor, Precious Metal Mines, Inc. On June 28, 1996, at a special directors meeting, the Company's name was changed to Metalline Mining Company ("Metalline"). On April 20, 2011, at an annual meeting of shareholders, the Company's name change to Silver Bull Resources, Inc. was approved and became effective April 21, 2011. The Company's fiscal year-end is October 31. The Company has not realized any revenues from its planned operations and is considered an Exploration Stage Company. The Company has not established any reserves with respect to its exploration projects, and may never enter into the development with respect to any of its projects.</font></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">The Company engages in the business of mineral exploration. The Company currently owns or has the option to acquire a number of property concessions in Mexico (collectively known as the "Sierra Mojada Property"). The Company conducts its operations in Mexico through its wholly-owned subsidiary corporations, Minera Metalin S.A. de C.V. ("Minera") and Contratistas de Sierra Mojada S.A. de C.V. ("Contratistas") and through Minera's wholly-owned subsidiary Minas de Coahuila SBR S.A. de C.V. ("Minas").</font></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">On April 16, 2010, Metalline Mining Delaware, Inc., a wholly-owned subsidiary of the Company, was merged with and into Dome Ventures Corporation ("Dome"). As a result, Dome became a wholly-owned subsidiary of the Company. Dome's subsidiaries include its wholly-owned subsidiaries Dome Asia Inc., and Dome International Global Inc., which are incorporated in the British Virgin Islands. Dome International Global Inc.'s subsidiaries include its wholly-owned subsidiaries incorporated in Gabon, Dome Ventures SARL Gabon, and African Resources SARL Gabon, as well as its 99.99%-owned subsidiary, Dome Minerals Nigeria Limited incorporated in Nigeria. Dome Venture SARL Gabon has a wholly-owned subsidiary Gabon Resources SARL. The Company conducts its exploration activities in Gabon, Africa through Dome Ventures SARL Gabon and African Resources SARL Gabon.</font></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">The Company's efforts have been concentrated in expenditures related to exploration properties, principally in the Sierra Mojada Property located in Coahuila, Mexico. The Company has not determined whether the exploration properties contain ore reserves that are economically recoverable. The ultimate realization of the Company's investment in exploration properties is dependent upon the success of future property sales, the existence of economically recoverable reserves, the ability of the Company to obtain financing or make other arrangements for development, and upon future profitable production. The ultimate realization of the Company's investment in exploration properties cannot be determined at this time. Accordingly, no provision for any asset impairment that may result, in the event the Company is not successful in developing or selling these properties, has been made in the accompanying consolidated financial statements except as disclosed in Note 7.</font></p> </div>
72867181
314885
10287899
-6383825
-304296
-832780
-59536707
-4491690
-7116139
-80423387
-3188127
-1577077
-6989612
-3396124
24840886
1895252
4755434
263890
132602
317333
158058
-1988660
2047267
1744060
134392
288069
-78228997
-5212007
-3301638
-7047356
-3612507
<div> <p style="text-align: left;"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">NOTE 2 – BASIS OF PRESENTATION</font></b></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">The Company's unaudited interim consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP") and applicable rules of the Securities and Exchange Commission ("SEC") regarding interim reporting. All intercompany transactions and balances have been eliminated during consolidation. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these unaudited interim consolidated financial statements should be read in conjunction with the consolidated financial statements and notes contained in the Company's Annual Report on Form 10-K for the year ended October 31, 2011.</font></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">The unaudited interim consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements (except as disclosed in Note 3). In the opinion of management, these unaudited interim consolidated financial statements furnished herein include all adjustments, all of which are of a normal recurring nature, necessary for a fair statement of the results for the interim periods presented. Uncertainties with respect to estimates and assumptions are inherent in the preparation of the Company's consolidated financial statements; accordingly, it is possible that the actual results could differ from these estimates and assumptions and could have a material effect on the reported amounts of the Company's financial position and results of operations.</font></p> </div>
112170
56619
33799
60309
248413
-164652
-5448
-126864
13118
43131
47932
233836
202932
80789
165419
21609447
40555
3032196
11546
14514
239286
338115
10933
1778
64908705
10217774
21609447
451565
206398
188913
152193
6350286
673343
8287383
386208
178697
336573
161042
<div> <p style="text-align: left;"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">NOTE 8 – OFFICE AND MINING EQUIPMENT</font></b></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">The following is a summary of the Company's office and mining equipment at April 30, 2012 and October 31, 2011, respectively:</font></p>
<div>
<table border="0" cellspacing="0">
<tr><td width="40%"> </td>
<td width="10%"> </td>
<td width="17%"> </td>
<td width="4%"> </td>
<td width="5%"> </td>
<td width="16%"> </td>
<td width="4%"> </td></tr>
<tr valign="bottom"><td align="left"> </td>
<td align="left"> </td>
<td align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">April 30,</font></b></td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">October 31,</font></b></td>
<td align="left"> </td></tr>
<tr valign="bottom"><td align="left"> </td>
<td align="left"> </td>
<td style="border-bottom: #000000 1px solid;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">2012</font></b></td>
<td style="border-bottom: #000000 1px solid;" align="center"> </td>
<td align="center"> </td>
<td style="border-bottom: #000000 1px solid;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">2011</font></b></td>
<td style="border-bottom: #000000 1px solid;" align="left"> </td></tr>
<tr><td colspan="7"> </td></tr>
<tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Mining equipment</font></td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">949,132</font></td>
<td align="left"> </td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">1,051,312</font></td>
<td align="left"> </td></tr>
<tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Vehicles</font></td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">197,737</font></td>
<td align="left"> </td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">229,912</font></td>
<td align="left"> </td></tr>
<tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Buildings and structures</font></td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">186,041</font></td>
<td align="left"> </td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">186,041</font></td>
<td align="left"> </td></tr>
<tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Computer equipment and software</font></td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">189,558</font></td>
<td align="left"> </td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">203,000</font></td>
<td align="left"> </td></tr>
<tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Well equipment</font></td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">39,637</font></td>
<td align="left"> </td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">39,637</font></td>
<td align="left"> </td></tr>
<tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Office equipment</font></td>
<td align="left"> </td>
<td style="border-bottom: #000000 1px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">49,041</font></td>
<td style="border-bottom: #000000 1px solid;" align="left"> </td>
<td align="left"> </td>
<td style="border-bottom: #000000 1px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">49,041</font></td>
<td style="border-bottom: #000000 1px solid;" align="left"> </td></tr>
<tr valign="bottom"><td align="left"> </td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">1,611,146</font></td>
<td align="left"> </td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">1,758,943</font></td>
<td align="left"> </td></tr>
<tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Less: Accumulated depreciation</font></td>
<td align="left"> </td>
<td style="border-bottom: #000000 1px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">(880,653</font></td>
<td style="border-bottom: #000000 1px solid;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">)</font></td>
<td align="left"> </td>
<td style="border-bottom: #000000 1px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">(973,457</font></td>
<td style="border-bottom: #000000 1px solid;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">)</font></td></tr>
<tr valign="bottom"><td align="left"> </td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td style="border-bottom: #000000 1px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">730,493</font></td>
<td style="border-bottom: #000000 1px solid;" align="left"> </td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td style="border-bottom: #000000 1px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">785,486</font></td>
<td style="border-bottom: #000000 1px solid;" align="left"> </td></tr></table></div>
<p style="margin: 0px;"> </p> </div>
785486
730493
593727
-808883
<div> <p style="text-align: left;"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">NOTE 11 </font></b><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="2">- </font></b><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">RELATED PARTY TRANSACTIONS</font></b></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">The Company had an arrangement with Rand Edgar Investment Corp., a company owned by Brian Edgar, the Company's Chairman, whereby the Company paid approximately $10,000 per month for general corporate development, rent and administrative services for an office in Vancouver, British Columbia. This arrangement ended on March 31, 2012. During the three months ended April 30, 2012 and April 30, 2011, the Company paid $20,000 and $30,167 respectively, and during the six months ended April 30, 2012 and April 30, 2011, the Company paid $50,000 and $61,507 respectively, to Rand Edgar Investment Corp. for general corporate development, rent and administrative services which is included in the office and administrative line of the consolidated statement of operations and comprehensive loss.</font></p> </div>
15783
77068
44227
-73559865
-80549477
<div> <div>
<p style="text-align: left;"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">NOTE 18 – SEGMENT INFORMATION</font></b></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">The Company operates in one business segment being the exploration of mineral property interests. The Company has mineral property interests in Sierra Mojada, Mexico and Gabon, Africa.</font></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Geographic information is approximately as follows:</font></p>
<div>
<table border="0" cellspacing="0">
<tr><td width="15%"> </td>
<td width="2%"> </td>
<td width="9%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="12%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="9%"> </td>
<td width="3%"> </td>
<td width="2%"> </td>
<td width="9%"> </td>
<td width="3%"> </td>
<td width="2%"> </td>
<td width="10%"> </td>
<td width="3%"> </td></tr>
<tr valign="bottom"><td align="left"> </td>
<td align="left"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Period from</font></b></td>
<td align="left"> </td></tr>
<tr valign="bottom"><td align="left"> </td>
<td align="left"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">November 8,</font></b></td>
<td align="left"> </td></tr>
<tr valign="bottom"><td align="left"> </td>
<td align="left"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">1993</font></b></td>
<td align="left"> </td></tr>
<tr valign="bottom"><td align="left"> </td>
<td align="left"> </td>
<td colspan="4" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">For the Three Months Ended</font></b></td>
<td align="center"> </td>
<td align="center"> </td>
<td colspan="4" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">For the Six Months Ended</font></b></td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">(Inception) To</font></b></td>
<td align="left"> </td></tr>
<tr valign="bottom"><td align="left"> </td>
<td style="border-bottom: #000000 1px solid;" align="left"> </td>
<td style="border-bottom: #000000 1px solid; text-indent: 8px;" colspan="4" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">April 30,</font></b></td>
<td style="border-bottom: #000000 1px solid;" align="center"> </td>
<td align="center"> </td>
<td style="border-bottom: #000000 1px solid;" colspan="4" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">April 30,</font></b></td>
<td style="border-bottom: #000000 1px solid;" align="center"> </td>
<td align="center"> </td>
<td align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">April 30,</font></b></td>
<td align="left"> </td></tr>
<tr valign="bottom"><td align="left"> </td>
<td style="border-bottom: #000000 1px solid;" align="left"> </td>
<td style="border-bottom: #000000 1px solid;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">2012</font></b></td>
<td style="border-bottom: #000000 1px solid;" align="center"> </td>
<td style="border-bottom: #000000 1px solid;" align="center"> </td>
<td style="border-bottom: #000000 1px solid;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">2011</font></b></td>
<td style="border-bottom: #000000 1px solid;" align="center"> </td>
<td align="center"> </td>
<td style="border-bottom: #000000 1px solid;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">2012</font></b></td>
<td style="border-bottom: #000000 1px solid;" align="center"> </td>
<td style="border-bottom: #000000 1px solid;" align="center"> </td>
<td style="border-bottom: #000000 1px solid;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">2011</font></b></td>
<td style="border-bottom: #000000 1px solid;" align="center"> </td>
<td align="center"> </td>
<td style="border-bottom: #000000 1px solid;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">2012</font></b></td>
<td style="border-bottom: #000000 1px solid;" align="left"> </td></tr>
<tr valign="bottom"><td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Net (loss) income for</font></td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="right"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td></tr>
<tr valign="bottom"><td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">the period</font></td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="right"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td></tr>
<tr valign="bottom"><td style="text-indent: 4px;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Mexico</font></td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">(2,300,000</font></td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">)</font></td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">408,000</font></td>
<td align="left"> </td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">(4,817,000</font></td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">)</font></td>
<td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">1,000</font></td>
<td align="left"> </td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">(42,362,000</font></td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">)</font></td></tr>
<tr valign="bottom"><td style="text-indent: 4px;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Canada</font></td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">(746,000</font></td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">)</font></td>
<td align="right"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">(2,041,000</font></td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">)</font></td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">(1,599,000</font></td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">)</font></td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">(2,043,000</font></td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">)</font></td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">(2,884,000</font></td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">)</font></td></tr>
<tr valign="bottom"><td style="text-indent: 4px;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Gabon</font></td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">(350,000</font></td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">)</font></td>
<td align="right"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">56,000</font></td>
<td align="left"> </td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">(574,000</font></td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">)</font></td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">23,000</font></td>
<td align="left"> </td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">(868,000</font></td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">)</font></td></tr>
<tr valign="bottom"><td style="text-indent: 4px;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">United States</font></td>
<td align="left"> </td>
<td style="border-bottom: #000000 1px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">-</font></td>
<td style="border-bottom: #000000 1px solid;" align="left"> </td>
<td style="border-bottom: #000000 1px solid;" align="right"> </td>
<td style="border-bottom: #000000 1px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">-</font></td>
<td style="border-bottom: #000000 1px solid;" align="left"> </td>
<td align="left"> </td>
<td style="border-bottom: #000000 1px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">-</font></td>
<td style="border-bottom: #000000 1px solid;" align="left"> </td>
<td align="left"> </td>
<td style="border-bottom: #000000 1px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">(1,169,000</font></td>
<td style="border-bottom: #000000 1px solid;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">)</font></td>
<td style="border-bottom: #000000 1px solid;" align="left"> </td>
<td style="border-bottom: #000000 1px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">(34,309,000</font></td>
<td style="border-bottom: #000000 1px solid;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">)</font></td></tr>
<tr valign="bottom"><td align="left"> </td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td style="border-bottom: #000000 1px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">(3,396,000</font></td>
<td style="border-bottom: #000000 1px solid;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">)</font></td>
<td style="border-bottom: #000000 1px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td style="border-bottom: #000000 1px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">(1,577,000</font></td>
<td style="border-bottom: #000000 1px solid;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">)</font></td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td style="border-bottom: #000000 1px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">(6,990,000</font></td>
<td style="border-bottom: #000000 1px solid;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">)</font></td>
<td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td style="border-bottom: #000000 1px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">(3,188,000</font></td>
<td style="border-bottom: #000000 1px solid;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">)</font></td>
<td style="border-bottom: #000000 1px solid;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td style="border-bottom: #000000 1px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">(80,423,000</font></td>
<td style="border-bottom: #000000 1px solid;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">)</font></td></tr></table></div>
<p style="margin: 0px;"> </p>
<div>
<table border="0" cellspacing="0">
<tr><td width="15%"> </td>
<td width="2%"> </td>
<td width="9%"> </td>
<td width="3%"> </td>
<td width="2%"> </td>
<td width="9%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="9%"> </td>
<td width="3%"> </td>
<td width="2%"> </td>
<td width="9%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="12%"> </td>
<td width="3%"> </td></tr>
<tr valign="bottom"><td align="left"> </td>
<td align="left"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Period from</font></b></td>
<td align="left"> </td></tr>
<tr valign="bottom"><td align="left"> </td>
<td align="left"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">November 8,</font></b></td>
<td align="left"> </td></tr>
<tr valign="bottom"><td align="left"> </td>
<td align="left"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">1993</font></b></td>
<td align="left"> </td></tr>
<tr valign="bottom"><td align="left"> </td>
<td align="left"> </td>
<td colspan="4" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">For the Three Months Ended</font></b></td>
<td align="center"> </td>
<td align="center"> </td>
<td colspan="4" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">For the Six Months Ended</font></b></td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">(Inception) To</font></b></td>
<td align="left"> </td></tr>
<tr valign="bottom"><td align="left"> </td>
<td style="border-bottom: #000000 1px solid;" align="left"> </td>
<td style="border-bottom: #000000 1px solid;" colspan="4" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">April 30,</font></b></td>
<td style="border-bottom: #000000 1px solid;" align="center"> </td>
<td align="center"> </td>
<td style="border-bottom: #000000 1px solid;" colspan="4" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">April 30,</font></b></td>
<td style="border-bottom: #000000 1px solid;" align="center"> </td>
<td align="center"> </td>
<td align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">April 30,</font></b></td>
<td align="left"> </td></tr>
<tr valign="bottom"><td align="left"> </td>
<td style="border-bottom: #000000 1px solid;" align="left"> </td>
<td style="border-bottom: #000000 1px solid;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">2012</font></b></td>
<td style="border-bottom: #000000 1px solid;" align="center"> </td>
<td style="border-bottom: #000000 1px solid;" align="center"> </td>
<td style="border-bottom: #000000 1px solid;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">2011</font></b></td>
<td style="border-bottom: #000000 1px solid;" align="center"> </td>
<td align="center"> </td>
<td style="border-bottom: #000000 1px solid;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">2012</font></b></td>
<td style="border-bottom: #000000 1px solid;" align="center"> </td>
<td style="border-bottom: #000000 1px solid;" align="center"> </td>
<td style="border-bottom: #000000 1px solid;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">2011</font></b></td>
<td style="border-bottom: #000000 1px solid;" align="center"> </td>
<td style="border-bottom: #000000 1px solid;" align="center"> </td>
<td style="border-bottom: #000000 1px solid;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">2012</font></b></td>
<td style="border-bottom: #000000 1px solid;" align="left"> </td></tr>
<tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Exploration and</font></td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="right"> </td>
<td align="left"> </td>
<td align="left"> </td></tr>
<tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">property holding costs</font></td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="right"> </td>
<td align="left"> </td>
<td align="left"> </td></tr>
<tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">for the period</font></td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="right"> </td>
<td align="left"> </td>
<td align="left"> </td></tr>
<tr valign="bottom"><td style="text-indent: 4px;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Mexico</font></td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">(3,350,000</font></td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">)</font></td>
<td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">(2,015,000</font></td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">)</font></td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">(5,845,000</font></td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">)</font></td>
<td align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">(3,100,000</font></td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">)</font></td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">(42,872,000</font></td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">)</font></td></tr>
<tr valign="bottom"><td style="text-indent: 4px;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Gabon</font></td>
<td align="left"> </td>
<td style="border-bottom: #000000 1px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">(374,000</font></td>
<td style="border-bottom: #000000 1px solid;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">)</font></td>
<td align="left"> </td>
<td style="border-bottom: #000000 1px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">(69,000</font></td>
<td style="border-bottom: #000000 1px solid;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">)</font></td>
<td align="left"> </td>
<td style="border-bottom: #000000 1px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">(431,000</font></td>
<td style="border-bottom: #000000 1px solid;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">)</font></td>
<td align="left"> </td>
<td style="border-bottom: #000000 1px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">(84,000</font></td>
<td style="border-bottom: #000000 1px solid;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">)</font></td>
<td style="border-bottom: #000000 1px solid;" align="right"> </td>
<td style="border-bottom: #000000 1px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">(733,000</font></td>
<td style="border-bottom: #000000 1px solid;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">)</font></td></tr>
<tr valign="bottom"><td align="left"> </td>
<td style="border-bottom: #000000 1px solid;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td style="border-bottom: #000000 1px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">(3,724,000</font></td>
<td style="border-bottom: #000000 1px solid;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">)</font></td>
<td style="border-bottom: #000000 1px solid;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td style="border-bottom: #000000 1px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">(2,084,000</font></td>
<td style="border-bottom: #000000 1px solid;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">)</font></td>
<td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td style="border-bottom: #000000 1px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">(6,276,000</font></td>
<td style="border-bottom: #000000 1px solid;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">)</font></td>
<td style="border-bottom: #000000 1px solid;" align="center"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td style="border-bottom: #000000 1px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">(3,184,000</font></td>
<td style="border-bottom: #000000 1px solid;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">)</font></td>
<td style="border-bottom: #000000 1px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td style="border-bottom: #000000 1px solid;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">(43,605,000</font></td>
<td style="border-bottom: #000000 1px solid;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">)</font></td></tr></table></div>
<p style="margin: 0px;"> </p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">The following table details allocation of assets included in the accompanying balance sheet at April 30, 2012:</font></p></div>
<div> </div><br />
<div>
<div>
<table border="0" cellspacing="0">
<tr><td width="26%"> </td>
<td width="3%"> </td>
<td width="12%"> </td>
<td width="3%"> </td>
<td width="11%"> </td>
<td width="2%"> </td>
<td width="11%"> </td>
<td width="3%"> </td>
<td width="10%"> </td>
<td width="3%"> </td>
<td width="10%"> </td></tr>
<tr valign="bottom"><td align="left"> </td>
<td align="left"> </td>
<td align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">United</font></b></td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td></tr>
<tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left"> </td>
<td style="border-bottom: #000000 1px solid;" align="left"> </td>
<td style="border-bottom: #000000 1px solid;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">States</font></b></td>
<td style="border-bottom: #000000 1px solid;" align="center"> </td>
<td style="border-bottom: #000000 1px solid;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Canada</font></b></td>
<td style="border-bottom: #000000 1px solid;" align="center"> </td>
<td style="border-bottom: #000000 1px solid;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Mexico</font></b></td>
<td style="border-bottom: #000000 1px solid;" align="center"> </td>
<td style="border-bottom: #000000 1px solid;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Gabon</font></b></td>
<td style="border-bottom: #000000 1px solid;" align="center"> </td>
<td style="border-bottom: #000000 1px solid;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Total</font></b></td></tr>
<tr valign="bottom"><td bgcolor="#cceeff" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Cash and cash equivalents</font></td>
<td bgcolor="#cceeff" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td bgcolor="#cceeff" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">246,000</font></td>
<td bgcolor="#cceeff" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td bgcolor="#cceeff" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">6,231,000</font></td>
<td bgcolor="#cceeff" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td bgcolor="#cceeff" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">60,000</font></td>
<td bgcolor="#cceeff" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td bgcolor="#cceeff" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">22,000</font></td>
<td bgcolor="#cceeff" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td bgcolor="#cceeff" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">6,559,000</font></td></tr>
<tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Restricted cash</font></td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">-</font></td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">-</font></td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">-</font></td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">44,000</font></td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">44,000</font></td></tr>
<tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Value-added tax receivable, net</font></td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">-</font></td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">-</font></td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">2,113,000</font></td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">-</font></td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">2,113,000</font></td></tr>
<tr valign="bottom"><td bgcolor="#cceeff" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Other receivables</font></td>
<td bgcolor="#cceeff" align="left"> </td>
<td bgcolor="#cceeff" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">-</font></td>
<td bgcolor="#cceeff" align="left"> </td>
<td bgcolor="#cceeff" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">150,000</font></td>
<td bgcolor="#cceeff" align="left"> </td>
<td bgcolor="#cceeff" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">9,000</font></td>
<td bgcolor="#cceeff" align="left"> </td>
<td bgcolor="#cceeff" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">7,000</font></td>
<td bgcolor="#cceeff" align="left"> </td>
<td bgcolor="#cceeff" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">166,000</font></td></tr>
<tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Prepaid expenses and income</font></td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td></tr>
<tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">taxes and deposits</font></td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">-</font></td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">201,000</font></td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">138,000</font></td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">-</font></td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">339,000</font></td></tr>
<tr valign="bottom"><td bgcolor="#cceeff" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Mining concessions</font></td>
<td bgcolor="#cceeff" align="left"> </td>
<td bgcolor="#cceeff" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">-</font></td>
<td bgcolor="#cceeff" align="left"> </td>
<td bgcolor="#cceeff" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">-</font></td>
<td bgcolor="#cceeff" align="left"> </td>
<td bgcolor="#cceeff" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">5,597,000</font></td>
<td bgcolor="#cceeff" align="left"> </td>
<td bgcolor="#cceeff" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">3,913,000</font></td>
<td bgcolor="#cceeff" align="left"> </td>
<td bgcolor="#cceeff" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">9,510,000</font></td></tr>
<tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Office and mining equipment,</font></td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td></tr>
<tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">net</font></td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">-</font></td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">5,000</font></td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">715,000</font></td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">10,000</font></td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">730,000</font></td></tr>
<tr valign="bottom"><td bgcolor="#cceeff" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Value-added tax receivable, net</font></td>
<td bgcolor="#cceeff" align="left"> </td>
<td bgcolor="#cceeff" align="left"> </td>
<td bgcolor="#cceeff" align="left"> </td>
<td bgcolor="#cceeff" align="left"> </td>
<td bgcolor="#cceeff" align="left"> </td>
<td bgcolor="#cceeff" align="left"> </td>
<td bgcolor="#cceeff" align="left"> </td>
<td bgcolor="#cceeff" align="left"> </td>
<td bgcolor="#cceeff" align="left"> </td>
<td bgcolor="#cceeff" align="left"> </td></tr>
<tr valign="bottom"><td bgcolor="#cceeff" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">long term</font></td>
<td bgcolor="#cceeff" align="left"> </td>
<td bgcolor="#cceeff" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">-</font></td>
<td bgcolor="#cceeff" align="left"> </td>
<td bgcolor="#cceeff" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">-</font></td>
<td bgcolor="#cceeff" align="left"> </td>
<td bgcolor="#cceeff" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">-</font></td>
<td bgcolor="#cceeff" align="left"> </td>
<td bgcolor="#cceeff" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">476,000</font></td>
<td bgcolor="#cceeff" align="left"> </td>
<td bgcolor="#cceeff" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">476,000</font></td></tr>
<tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Goodwill</font></td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">-</font></td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">-</font></td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">18,495,000</font></td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">-</font></td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">18,495,000</font></td></tr>
<tr valign="bottom"><td bgcolor="#cceeff" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Other assets</font></td>
<td style="border-bottom: #000000 1px solid;" bgcolor="#cceeff" align="left"> </td>
<td style="border-bottom: #000000 1px solid;" bgcolor="#cceeff" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">-</font></td>
<td style="border-bottom: #000000 1px solid;" bgcolor="#cceeff" align="left"> </td>
<td style="border-bottom: #000000 1px solid;" bgcolor="#cceeff" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">41,000</font></td>
<td style="border-bottom: #000000 1px solid;" bgcolor="#cceeff" align="left"> </td>
<td style="border-bottom: #000000 1px solid;" bgcolor="#cceeff" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">-</font></td>
<td style="border-bottom: #000000 1px solid;" bgcolor="#cceeff" align="left"> </td>
<td style="border-bottom: #000000 1px solid;" bgcolor="#cceeff" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">16,000</font></td>
<td style="border-bottom: #000000 1px solid;" bgcolor="#cceeff" align="left"> </td>
<td style="border-bottom: #000000 1px solid;" bgcolor="#cceeff" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">57,000</font></td></tr>
<tr valign="bottom"><td align="left"> </td>
<td style="border-bottom: #000000 3px double;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td style="border-bottom: #000000 3px double;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">246,000</font></td>
<td style="border-bottom: #000000 3px double;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td style="border-bottom: #000000 3px double;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">6,628,000</font></td>
<td style="border-bottom: #000000 3px double;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td style="border-bottom: #000000 3px double;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">27,127,000</font></td>
<td style="border-bottom: #000000 3px double;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td style="border-bottom: #000000 3px double;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">4,488,000</font></td>
<td style="border-bottom: #000000 3px double;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td style="border-bottom: #000000 3px double;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">38,489,000</font></td></tr></table></div>
<p style="margin: 0px;"> </p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">The following table details allocation of assets included in the accompanying balance sheet at October 31, 2011:</font></p>
<div>
<table border="0" cellspacing="0">
<tr><td width="26%"> </td>
<td width="3%"> </td>
<td width="12%"> </td>
<td width="3%"> </td>
<td width="11%"> </td>
<td width="3%"> </td>
<td width="11%"> </td>
<td width="3%"> </td>
<td width="11%"> </td>
<td width="3%"> </td>
<td width="10%"> </td></tr>
<tr valign="bottom"><td align="left"> </td>
<td align="left"> </td>
<td align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">United</font></b></td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td>
<td align="center"> </td></tr>
<tr valign="bottom"><td align="left"> </td>
<td align="left"> </td>
<td style="border-bottom: #000000 1px solid;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">States</font></b></td>
<td style="border-bottom: #000000 1px solid;" align="center"> </td>
<td style="border-bottom: #000000 1px solid;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Canada</font></b></td>
<td style="border-bottom: #000000 1px solid;" align="center"> </td>
<td style="border-bottom: #000000 1px solid;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Mexico</font></b></td>
<td style="border-bottom: #000000 1px solid;" align="center"> </td>
<td style="border-bottom: #000000 1px solid;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Gabon</font></b></td>
<td style="border-bottom: #000000 1px solid;" align="center"> </td>
<td style="border-bottom: #000000 1px solid;" align="center"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">Total</font></b></td></tr>
<tr valign="bottom"><td bgcolor="#cceeff" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Cash and cash equivalents</font></td>
<td bgcolor="#cceeff" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td bgcolor="#cceeff" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">40,000</font></td>
<td bgcolor="#cceeff" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td bgcolor="#cceeff" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">4,160,000</font></td>
<td bgcolor="#cceeff" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td bgcolor="#cceeff" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">18,000</font></td>
<td bgcolor="#cceeff" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td bgcolor="#cceeff" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">21,000</font></td>
<td bgcolor="#cceeff" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td bgcolor="#cceeff" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">4,239,000</font></td></tr>
<tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Restricted cash</font></td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">-</font></td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">-</font></td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">-</font></td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">77,000</font></td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">77,000</font></td></tr>
<tr valign="bottom"><td bgcolor="#cceeff" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Other receivables</font></td>
<td bgcolor="#cceeff" align="left"> </td>
<td bgcolor="#cceeff" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">-</font></td>
<td bgcolor="#cceeff" align="left"> </td>
<td bgcolor="#cceeff" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">72,000</font></td>
<td bgcolor="#cceeff" align="left"> </td>
<td bgcolor="#cceeff" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">9,000</font></td>
<td bgcolor="#cceeff" align="left"> </td>
<td bgcolor="#cceeff" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">-</font></td>
<td bgcolor="#cceeff" align="left"> </td>
<td bgcolor="#cceeff" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">81,000</font></td></tr>
<tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Prepaid expenses and income</font></td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td></tr>
<tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">taxes and deposits</font></td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">-</font></td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">100,000</font></td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">150,000</font></td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">-</font></td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">250,000</font></td></tr>
<tr valign="bottom"><td bgcolor="#cceeff" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Mining concessions</font></td>
<td bgcolor="#cceeff" align="left"> </td>
<td bgcolor="#cceeff" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">-</font></td>
<td bgcolor="#cceeff" align="left"> </td>
<td bgcolor="#cceeff" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">-</font></td>
<td bgcolor="#cceeff" align="left"> </td>
<td bgcolor="#cceeff" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">4,847,000</font></td>
<td bgcolor="#cceeff" align="left"> </td>
<td bgcolor="#cceeff" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">4,500,000</font></td>
<td bgcolor="#cceeff" align="left"> </td>
<td bgcolor="#cceeff" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">9,347,000</font></td></tr>
<tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Office and mining equipment,</font></td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td>
<td align="left"> </td></tr>
<tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">net</font></td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">-</font></td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">7,000</font></td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">764,000</font></td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">14,000</font></td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">785,000</font></td></tr>
<tr valign="bottom"><td bgcolor="#cceeff" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Value-added tax receivable, net</font></td>
<td bgcolor="#cceeff" align="left"> </td>
<td bgcolor="#cceeff" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">-</font></td>
<td bgcolor="#cceeff" align="left"> </td>
<td bgcolor="#cceeff" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">-</font></td>
<td bgcolor="#cceeff" align="left"> </td>
<td bgcolor="#cceeff" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">1,278,000</font></td>
<td bgcolor="#cceeff" align="left"> </td>
<td bgcolor="#cceeff" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">549,000</font></td>
<td bgcolor="#cceeff" align="left"> </td>
<td bgcolor="#cceeff" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">1,827,000</font></td></tr>
<tr valign="bottom"><td align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Goodwill</font></td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">-</font></td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">-</font></td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">18,495,000</font></td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">-</font></td>
<td align="left"> </td>
<td align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">18,495,000</font></td></tr>
<tr valign="bottom"><td bgcolor="#cceeff" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Other assets</font></td>
<td style="border-bottom: #000000 1px solid;" bgcolor="#cceeff" align="left"> </td>
<td style="border-bottom: #000000 1px solid;" bgcolor="#cceeff" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">-</font></td>
<td style="border-bottom: #000000 1px solid;" bgcolor="#cceeff" align="left"> </td>
<td style="border-bottom: #000000 1px solid;" bgcolor="#cceeff" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">95,000</font></td>
<td style="border-bottom: #000000 1px solid;" bgcolor="#cceeff" align="left"> </td>
<td style="border-bottom: #000000 1px solid;" bgcolor="#cceeff" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">-</font></td>
<td style="border-bottom: #000000 1px solid;" bgcolor="#cceeff" align="left"> </td>
<td style="border-bottom: #000000 1px solid;" bgcolor="#cceeff" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">18,000</font></td>
<td style="border-bottom: #000000 1px solid;" bgcolor="#cceeff" align="left"> </td>
<td style="border-bottom: #000000 1px solid;" bgcolor="#cceeff" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">113,000</font></td></tr>
<tr valign="bottom"><td align="left"> </td>
<td style="border-bottom: #000000 3px double;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td style="border-bottom: #000000 3px double;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">40,000</font></td>
<td style="border-bottom: #000000 3px double;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td style="border-bottom: #000000 3px double;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">4,434,000</font></td>
<td style="border-bottom: #000000 3px double;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td style="border-bottom: #000000 3px double;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">25,561,000</font></td>
<td style="border-bottom: #000000 3px double;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td style="border-bottom: #000000 3px double;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">5,179,000</font></td>
<td style="border-bottom: #000000 3px double;" align="left"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">$</font></td>
<td style="border-bottom: #000000 3px double;" align="right"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">35,214,000</font></td></tr></table></div>
<p style="margin: 0px;"> </p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">The Company has significant assets in Coahuila, Mexico and Gabon, Africa. Although these countries are generally considered economically stable, it is always possible that unanticipated events in foreign countries could disrupt the Company's operations. Neither the Mexican government nor the Gabonese government requires foreign entities to maintain cash reserves in their respective country.</font></p></div>
<div> </div><br /> </div>
<div> <div>
<p style="text-align: left;"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">NOTE 3 – SIGNIFICANT ACCOUNTING POLICIES</font></b></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">The significant accounting policies are defined in the Company's Form 10-K for the year ended October 31, 2011 filed on January 11, 2012 except as follows.</font></p>
<p style="text-align: left;"><u><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Foreign Currency</font></u></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">During the year ended October 31, 2011 assets and liabilities of the Company's foreign operations were translated into U.S. dollars at the period-end exchange rate, and revenue and expenses were translated at the average exchange rate during the period. Exchange differences arising on translation were disclosed as a separate component of stockholders' equity. Realized gains and losses from foreign currency transactions were reflected in the results of operations. Intercompany transactions and balances with the Company's Mexican and Gabonese subsidiaries were considered to be short-term in nature except for $13.4 million of intercompany loans which the Company agreed to convert to future capital increases. All foreign currency transaction gains and losses on intercompany loans which were not considered to be short-term in nature were included in the consolidated statement of operations.</font></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">During the six months ended April 30, 2012 the Company's Gabonese foreign operations were translated into U.S. dollars consistent with the year-ended October 31, 2011.</font></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">As at November 1, 2011, the Company determined that the functional currency of the Company's Mexican subsidiaries changed from the Mexican Peso ("$MXN") to the U.S. dollar. During the six months ended April 30, 2012 the Company's Mexican foreign operations monetary assets and liabilities were translated into U.S. dollars at the period-end exchange rate and non-monetary assets and liabilities were translated using the historical exchange rate. The Company's Mexican foreign operations revenue and expenses were translated at the average exchange rate during the period except for depreciation of office and mining equipment and impairment of property concessions which are translated using the historical exchange rate. Foreign currency translation gains and losses of the Company's foreign Mexican operations occurring after November 1, 2011 are included in the consolidated statement of operations.</font></p>
<p style="text-align: left;"><u><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Recent Accounting Pronouncements Adopted in the Six Months Ended April 30, 2012</font></u></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">In January 2010, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2010-06 which included additional disclosures about purchases, sales, issuances and settlements in the roll forward of activity in Level 3 fair value measurements disclosures effective for fiscal years beginning after December 15, 2010, and for interim periods within those years. The adoption of this guidance did not have a material effect on the Company's financial position, results of operations or cash flows.</font></p>
<p style="text-align: left;"><u><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Recent Accounting Pronouncements</font></u></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">In September 2011, the FASB issued ASU 2011-08 "</font><i><font style="font-family: TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif;" class="_mt" size="1">Intangibles – Goodwill and Other.</font></i><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">" This new guidance on testing goodwill provides an entity the option to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If an entity determines that this is the case, it is required to perform the currently prescribed two-step goodwill impairment test to identify potential goodwill impairment and measure the amount of goodwill impairment loss to be recognized for that reporting unit (if any). If an entity determines that the fair value of a reporting unit is not less than its carrying amount, the two-step goodwill impairment test is not required. ASU 2011-08 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011 with prospective application required. The adoption of this guidance is not expected to have a material effect on the Company`s financial position, results of operations or cash flows.</font></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">In June 2011, the FASB issued ASU 2011-05, "</font><i><font style="font-family: TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif;" class="_mt" size="1">Presentation of Comprehensive Income</font></i><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">." This update amended the presentation options in Accounting Standards Codification ("ASC") 220, "</font><i><font style="font-family: TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif;" class="_mt" size="1">Comprehensive Income</font></i><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">," to provide an entity the option to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. ASU 2011-05 is effective for fiscal years, and interim periods within those years,</font></p></div>
<div> </div><br />
<div>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">beginning after December 15, 2011 with retrospective application required. The adoption of this guidance is not expected to have a material effect on the Company`s financial position, results of operations or cash flows.</font></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">In May 2011, the FASB issued ASU 2011-04, </font><i><font style="font-family: TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif;" class="_mt" size="1">"Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs." </font></i><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">This update amended explanations of how to measure fair value to result in common fair value measurement and disclosure requirements in GAAP and International Financial Reporting Standards. ASU 2011-04 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011 with prospective application required. The adoption of this guidance is not expected to have a material effect on the Company`s financial position, results of operations or cash flows.</font></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force) and the United States Securities and Exchange Commission did not or are not believed to have a material impact on the Company's present or future consolidated financial statements.</font></p></div> </div>
32991122
36685364
<div> <p style="text-align: left;"><b><font style="font-family: TimesNewRomanPS-BoldMT,Times New Roman,Times,serif;" class="_mt" size="1">NOTE 13 - COMMON STOCK</font></b></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">On December 12, 2011, the Company closed a registered direct offering for the sale or 20,755,000 shares of common stock at a price of $0.50 per share for gross proceeds of $10,377,500. The Company paid a 6% finder's fee totaling $94,500 to a Canadian finder with respect to certain non-U.S. purchasers who were introduced by them. The Company incurred other offering costs of $209,744 related to this offering.</font></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">On December 13, 2011, the Company closed a registered direct offering for the sale or 295,000 shares of common stock at a price of $0.50 per share for gross proceeds of $147,500. The Company incurred offering costs of $2,982 related to this offering.</font></p>
<p style="text-align: left;"><font style="font-family: TimesNewRomanPSMT,Times New Roman,Times,serif;" class="_mt" size="1">During the comparable six months ended April 30, 2011, the Company issued 1,333,353 shares of common stock upon the exercise of warrants at an average cash consideration of $0.50 per share. Options to acquire 261,355 shares of common stock were also exercised at an average exercise price of $0.58. In addition, options to acquire 9,999 shares of common stock were exercised by way of a cashless exercise whereby the recipients elected to receive 3,691 shares without payment of the exercised price and the remaining options for 6,308 shares were cancelled.</font></p> </div>
9775361
661177
630732
7842
20119
1826664
476320
** Derived from the audited financial statements for the year ended October 31, 2011.