10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10- Q

(Mark One)

x	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2013
o	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________

Commission File Number: 000-51203

First Colombia Gold Corp.

(Exact name of registrant as specified in its charter)

Nevada	98-0425310
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

Carrera 49, No 51-11, Suite 402, Copacabana, Antioquia, Colombia

(Address of principal executive offices)

888-224-6561

(Registrant’s telephone number, including area code)

__________________________________________________________________

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the issuer was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. x Yes o  No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). xYes o  No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer,” “non-accelerated filer,” and “a smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer  o	Accelerated filer                   o
Non-accelerated filer   o (Do not check if a smaller reporting company)	Smaller reporting company x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). o  Yes  x No

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:

Class	Outstanding at September 30,2013
Common Stock, $0.00001 par value	368,871,415

	FORM 10-Q FIRST COLOMBIA GOLD CORP. September 30, 2012 TABLE OF CONTENTS	Page
PART I – FINANCIAL INFORMATION
Item 1.	Interim Consolidated Financial Statements.	3
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.	4
Item 3.	Quantitative and Qualitative Disclosures About Market Risk.	27
Item 4.	Controls and Procedures.	27
PART II – OTHER INFORMATION
Item 1.	Legal Proceedings.	29
Item 1A.	Risk Factors.	29
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	29
Item 3.	Defaults Upon Senior Securities.	29
Item 4.	Mine Safety Disclosures.	29
Item 5.	Other Information.	29
Item 6.	Exhibits.	30
Signatures
Certifications

- 2 -

PART I - FINANCIAL INFORMATION

Item 1. Interim Consolidated Financial Statements

Our unaudited interim consolidated financial statements included in this Form 10-Q for the three and nine months ended September 30, 2013 are as follows:
F-1	Unaudited Interim Consolidated Balance Sheets as of September 30, 2013 and December 31, 2012.
F-2	Unaudited Interim Consolidated Statements of Operations for the three and nine months ended September 30, 2013 and 2012 and from inception on September 5, 1997 to September 30, 2013.
F-3	Unaudited Interim Consolidated Statements of Cash Flows for the nine months ended September 30, 2013 and 2012 and from inception on September 5, 1997 to September 30, 2013.
F-4	Notes to Unaudited Interim Consolidated Financial Statements.

These unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and the SEC instructions to Form 10-Q. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Operating results for the interim period ended September 30, 2013 are not necessarily indicative of the results that can be expected for the full year.

- 3 -

First Colombia Gold Corp.

(An Exploration Stage Company)

Interim Consolidated Balance Sheets

(Expressed in U.S. Dollars)

(Unaudited – Prepared by Management)

	As at 30 September 2013			As at 31 December 2012 (Audited)
	$				$
Assets
Current
Amounts receivable (Note 6)		-			27,500
Mineral property interests (Note 3)		1,000			32,500
Property and equipment (Note 4)		4,553			5,874
		5,553			65,874
Liabilities
Current
Bank indebtedness		-			13
Accounts payable and accrued liabilities (Note 5)		288,609			528,255
Current portion of convertible promissory notes (Note 6)		34,975			69,730
		323,584			597,998
Promissory notes (Note 7)		202,476			-
		526,060			597,998
Stockholders’ deficiency
Common stock (Note 9)
Authorized
850,000,000 common shares, par value $0.00001 and
150,000,000 blank check preferred shares, no par value
50,000,000 designated class A preferred shares, par value $0.001
Issued and outstanding
30 September 2013 – 47,568,500 class A preferred shares, par value $0.001
31 December 2012 – Nil class A preferred shares, par value $0.001		47,569			-
30 September 2013 – 368,871,415 common shares, par value $0.00001
31 December 2012 – 83,686,238 common shares, par value $0.00001		3,689			837
Additional paid in capital		18,805,783			18,554,809
Deficit, accumulated during the exploration stage		(19,377,548	)		(19,087,770	)
		(520,507	)		(532,124	)
		5,553			65,874

Nature, Basis of Presentation and Continuance of Operations (Note 1), Commitments and Contingencies (Note 10) and Subsequent Events (Note 14)

The accompanying notes are an integral part of the interim consolidated financial statements.

F - 1

First Colombia Gold Corp.

(An Exploration Stage Company)

Interim Consolidated Statements of Operations

(Expressed in U.S. Dollars)

(Unaudited – Prepared by Management)

	For the period from the date of inception on 5 September 1997 to 30 September 2013			For the  three month period ended 30 September 2013			For the  three month  period ended 30 September 2012			For the nine month period ended 30 September 2013			For the nine month period ended 30 September 2012
	$			$			$			$			$
Expenses
Amortization – property and equipment (Note 4)		45,056			440			899			1,321			2,697
Amortization – website development costs		40,001			-			-			-			-
Bank charges and interest (Note 6)		1,732,412			32,663			29,582			90,357			64,037
Consulting and management fees (Note 8)		5,420,155			42,173			10,500			78,473			29,250
Foreign exchange loss		19,657			-			-			-			-
Investor communication and promotion		656,521			14,500			175			23,775			175
Office and administrative		113,629			1,040			1,100			2,835			1,117
Professional fees		914,590			7,843			6,748			41,322			37,879
Rent		57,016			-			-			-			600
Stock-based compensation (Note 9)		22,399			-			-			-			-
Telephone		54,659			-			-			-			-
Transfer agent and filing fees		124,795			7,614			7,845			24,275			26,340
Travel and accommodation		377,754			-			-			-			-
Website maintenance		86,000			-			-			-			-
Mineral property expenditures (Note 3)		5,144,574			12,000			12,319			41,500			29,819
Net operating loss before other items		(14,809,218	)		(118,273	)		(69,168	)		(303,858	)		(191,914	)
Other items
Forgiveness of debt (Note 5)		89,730			5,373			-			50,730			-
Gain on sale of oil and gas property		10,745			-			-			-			-
Interest income		102,561			-			-			-			-
Recovery of expenses		4,982			-			-			-			-
Provision for write-down of mineral property interests (Note 3)		(5,069,650	)		-			-			(36,650	)		-
Write-down of incorporation cost		(12,500	)		-			-			-			-
Write-down of assets		(14,111	)		-			-			-			-
Net operating loss before income taxes		(19,697,461	)		(112,900	)		(69,168	)		(289,778	)		(191,914	)
Future income tax recovery		2,319,871			-			-			-			-
Net operating loss from continuing operations		(17,377,590	)		(112,900	)		(69,168	)		(289,778	)		(191,914	)
Discontinued operations of Beardmore Holdings, Inc.		(1,999,958	)		-			-			-			-
Net operating loss and comprehensive loss for the period		(19,377,548	)		(112,900	)		(69,168	)		(289,778	)		(191,914	)
Basic and diluted loss per common share					(0.000	)		(0.001	)		(0.001	)		(0.004	)
Weighted average number of common shares used in per share calculations					279,035,804			47,215,190			236,764,761			43,611,525

The accompanying notes are an integral part of the interim consolidated financial statements.

F - 2

First Colombia Gold Corp.

(An Exploration Stage Company)

Interim Consolidated Statements of Cash Flows

(Expressed in U.S. Dollars)

(Unaudited – Prepared by Management)

	For the period from the date of inception on 5 September 1997 to 30 September 2013			For the three month period ended 30 September 2013			For the three month period ended 30 September 2012			For the nine month period ended  30 September 2013			For the nine month  period ended  30 September 2012
	$			$			$			$			$
Cash flows used in operating activities
Net loss for the period		(17,377,590	)		(112,900	)		(69,168	)		(289,778	)		(191,914	)
Adjustments to reconcile loss to net cash used by operating activities
Amortization		85,057			440			899			1,321			2,697
Accrued interest		1,716,136			32,663			29,095			90,370			62,951
Consulting fees		40,200			-			-			-			-
Forgiveness of debt		(74,730	)		(5,373	)		-			(50,730	)		-
Future income tax recovery		(2,319,871	)		-			-			-			-
Gain on sale of oil and gas property		(10,745	)		-			-			-			-
Mineral property acquisition		1,816,000			-			-			-			-
Stock-based compensation		3,609,399			-			-			-			-
Provision for write-down of mineral property interests		5,069,650			-			-			36,650			-
Changes in operating assets and liabilities
Amounts receivable		-			-			-			27,500			-
Accounts payable and accrued liabilities		639,637			72,175			25,253			115,835			59,195
Net cash used in continuing operating activities		(6,806,858	)		(12,995	)		(14,921	)		(68,832	)		(67,071	)
Net cash used in discontinued operations		(186,440	)		-			-			-			-
Cash flows from financing activities
Bank indebtedness		-			-			-			(13	)		-
Cost of repurchase of common stock		(1,000	)		-			-			-			-
Convertible promissory notes		202,995			12,995			-			72,995			65,000
Warrants exercised		100,000			-			-			-			-
Issuance of common stock, net of share issue costs		8,311,915			-			-			-			-
Net cash used from continuing financing activities		8,613,910			12,995			-			72,982			65,000
Cash flows used in investing activities
Proceeds from sale of oil and gas property		46,200			-			-			-			-
Oil and gas property acquisitions		(2,846	)		-			-			-			-
Oil and gas exploration		(22,609	)		-			-			-			-
Mineral property acquisition		(52,759	)		-			-			(4,150	)		-
Purchase of equipment		(53,550	)		-			-			-			-
Website development cost		(40,000	)		-			-			-			-
Net cash used in continuing investing activities		(125,564	)		-			-			(4,150	)		-
Net cash used in discontinued operations		(1,499,422	)		-			-			-			-
Increase  in cash and cash equivalents		-			-			(14,921	)		-			(2,071	)
Cash and cash equivalents, beginning of period		-			-			15,044			-			2,194
Cash and cash equivalents, end of period		-			-			123			-			123

Supplemental Disclosures with Respect to Cash Flows (Note 12)

The accompanying notes are an integral part of the interim consolidated financial statements.

F - 3

First Colombia Gold Corp.

(An Exploration Stage Company)

Notes to Interim Consolidated Financial Statements

(Expressed in U.S. Dollars)

(Unaudited – Prepared by Management)

30 September 2013

1.    Nature, Basis of Presentation and Continuance of Operations

First Colombia Gold Corp. (the “Company”) was incorporated under the laws of the State of Nevada, U.S.A. under the name “Gondwana Energy, Ltd.” on 5 September 1997. On 23 January 2007, the Company changed its name to “Finmetal Mining Ltd.”. On 27 November 2006, the Company completed the acquisition of 100% of the shares of Finmetal Mining OY (“Finmetal OY”), a company incorporated under the laws of Finland. During the fiscal year ended 31 December 2006, the Company changed its operational focus from development of oil and gas properties, to acquisition of, exploration for and development of mineral properties in Finland.

On 22 May 2008, the Company changed its name to “Amazon Goldsands Ltd.” and on 18 September 2008, the Company entered into a Mineral Rights Option Agreement and concurrently re-focused on the acquisition of, exploration for and development of mineral properties located in Peru. On 29 November 2010, the Company changed its name to “First Colombia Gold Corp.”. The Company changed its name pursuant to a parent/subsidiary merger between the Company (as Amazon Goldsands Ltd.) and its wholly-owned non-operating subsidiary, First Colombia Gold Corp., which was established for the purpose of giving effect to this name change. In 2011 the Company expanded geographic focus to include North America, acquiring two mineral property interests while terminating its agreements related to the mineral property located in Peru in September 2011.

The Company is an exploration stage enterprise, as defined in Accounting Standards Codification (the “Codification” or “ASC”) 915-10, “Development Stage Entities”. The Company is devoting all of its present efforts in securing and establishing a new business. Its planned principal operations have not commenced and no revenue has been derived during the organization period.

The business of mining and exploring for minerals involves a high degree of risk and there can be no assurance that current exploration programs will result in profitable mining operations. The recoverability of the carrying value of exploration properties and the Company’s continued existence are dependent upon the preservation of its interest in the underlying properties, the discovery of economically recoverable reserves, the achievement of profitable operations, or the ability of the Company to raise alternative financing, if necessary, or alternatively upon the Company’s ability to dispose of its interests on an advantageous basis. Changes in future conditions could require material write downs of the carrying values.

Although the Company has taken steps to verify the title to the properties on which it is conducting exploration and in which it has an interest, in accordance with industry standards for the current stage of exploration of such properties, these procedures do not guarantee the Company’s title. Property title may be subject to unregistered prior agreements and non-compliance with regulatory requirements.

The accompanying interim consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Finmetal OY, a company incorporated under the laws of Finland, since its date of acquisition on 27 November 2006 and the results of Beardmore Holdings, Inc. (“Beardmore”), a company incorporated under the laws of Panama, to the date of disposal on 21 September 2011.

F - 4

First Colombia Gold Corp.

(An Exploration Stage Company)

Notes to Interim Consolidated Financial Statements

(Expressed in U.S. Dollars)

(Unaudited – Prepared by Management)

30 September 2013

The accompanying interim consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) applicable to exploration stage enterprises, and are expressed in U.S. dollars. The Company’s fiscal year end is 31 December.

The Company’s interim consolidated financial statements as at 30 September 2013 and for the six month period then ended have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business.

The Company had a net loss of $289,778 for the nine month period ended 30 September 2013 (30 September 2012 - $191,914, cumulative - $19,377,548) and has a working capital deficit of $323,584 at 30 September 2013 (31 December 2012 – $570,498), but management cannot provide assurance that the Company will ultimately achieve profitable operations or become cash flow positive, or raise additional debt and/or equity capital. The Company’s solvency, ability to meet its liabilities as they become due and to continue its operations, is essentially solely dependent at present on funding provided by Asher Enterprises, Inc. (“Asher”). If Asher is unwilling to provide ongoing funding to the Company and/or if the Company is unable to raise additional capital in the immediate future, the Company will need to curtail operations, liquidate assets, seek additional capital on less favourable terms and/or pursue other remedial measures or cease operations. This material uncertainty may cast significant doubt about the ability of the Company to continue as a going concern. In this regard, the Company intends to raise any necessary additional funds through loans or additional sales of its common stock.  However, there is no assurance that the Company will be successful in raising additional capital. These interim consolidated financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern including adjustments related to employee severance pay and other costs related to ceasing operations.

2.     Significant Accounting Policies

The following is a summary of significant accounting policies used in the preparation of these interim consolidated financial statements.

Principles of consolidation

All inter-company balances and transactions have been eliminated in these interim consolidated financial statements.

Cash and cash equivalents

The Company considers all highly liquid instruments with a maturity of three months or less at the time of issuance to be cash equivalents.

F - 5

First Colombia Gold Corp.

(An Exploration Stage Company)

Notes to Interim Consolidated Financial Statements

(Expressed in U.S. Dollars)

(Unaudited – Prepared by Management)

30 September 2013

Property and equipment

Furniture, computer equipment, office equipment and computer software are carried at cost and are amortized over their estimated useful lives at rates as follows:

Furniture, computer and office equipment	30	%
Computer software	100	%

The property and equipment is written down to its net realizable value if it is determined that its carrying value exceeds estimated future benefits to the Company.

Mineral property costs

Mineral property acquisition costs are initially capitalized as tangible assets when purchased. At the end of each fiscal quarter, the Company assesses the carrying costs for impairment. If proven and probable reserves are established for a property and it has been determined that a mineral property can be economically developed, costs will be amortized using the units-of-production method over the estimated life of the probable reserve.

Mineral property exploration costs are expensed as incurred.

Estimated future removal and site restoration costs, when determinable, are provided over the life of proven reserves on a units-of-production basis. Costs, which include production equipment removal and environmental remediation, are estimated each period by management based on current regulations, actual expenses incurred, and technology and industry standards. Any charge is included in exploration expense or the provision for depletion and depreciation during the period and the actual restoration expenditures are charged to the accumulated provision amounts as incurred.

As of the date of these interim consolidated financial statements, the Company has not established any proven or probable reserves on its mineral properties and incurred only acquisition and exploration costs.

Although the Company has taken steps to verify title to mineral properties in which it has an interest, according to the usual industry standards for the stage of exploration of such properties, these procedures do not guarantee the Company’s title. Such properties may be subject to prior agreements or transfers and title may be affected by undetected defects.

Segments of an enterprise and related information

ASC 280, “Segment Reporting” establishes guidance for the way that public companies report information about operating segments in annual financial statements and requires reporting of selected information about operating segments in financial statements issued to the public. It also establishes standards for disclosures regarding products and services, geographic areas and major customers. ASC 280 defines operating segments as components of a company about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance.

F - 6

First Colombia Gold Corp.

(An Exploration Stage Company)

Notes to Interim Consolidated Financial Statements

(Expressed in U.S. Dollars)

(Unaudited – Prepared by Management)

30 September 2013

Environmental costs

Environmental expenditures that are related to current operations are charged to operations or capitalized as appropriate. Expenditures that relate to an existing condition caused by past operations, and which do not contribute to current or future revenue generation, are charged to operations. Liabilities are recorded when environmental assessments and/or remedial efforts are probable, and the cost can be reasonably estimated. Generally, the timing of these accruals coincides with the earlier of completion of a feasibility study or the Company’s commitments to a plan of action based on the then known facts.

Comparative figures

Certain comparative figures have been adjusted to conform to the current period’s presentation.

Comprehensive loss

ASC 220, “Comprehensive Income” establishes standards for the reporting and display of comprehensive loss and its components in the financial statements. As at 30 September 2013, the Company did not have items that represent a comprehensive loss and, therefore, has not included a schedule of comprehensive loss in the interim consolidated financial statements.

Foreign currency translation

The Company’s functional and reporting currency is U.S. dollars. The interim consolidated financial statements of the Company are translated to U.S. dollars in accordance with ASC 830, “Foreign Currency Matters.” Monetary assets and liabilities denominated in foreign currencies are translated using the exchange rate prevailing at the balance sheet date. Gains and losses arising on translation or settlement of foreign currency denominated transactions or balances are included in the determination of income. The Company has not, to the date of these interim consolidated financial statements, entered into derivative instruments to offset the impact of foreign currency fluctuations.

Stock-based compensation

Effective 1 January 2006, the Company adopted the provisions of ASC 718, “Compensation – Stock Compensation”, which establishes accounting for equity instruments exchanged for employee services. Under the provisions of ASC 718, stock-based compensation cost is measured at the grant date, based on the calculated fair value of the award, and is recognized as an expense over the employees’ requisite service period (generally the vesting period of the equity grant). The Company adopted ASC 718 using the modified prospective method, which requires the Company to record compensation expense over the vesting period for all awards granted after the date of adoption, and for the unvested portion of previously granted awards that remain outstanding at the date of adoption. Accordingly, the financial statements for the periods prior to 1 January 2006 have not been restated to reflect the fair value method of expensing stock-based compensation. The adoption of ASC 718 did not change the way the Company accounts for stock-based payments to non-employees, with guidance provided by ASC 505-50, “Equity-Based Payments to Non-Employees”.

F - 7

First Colombia Gold Corp.

(An Exploration Stage Company)

Notes to Interim Consolidated Financial Statements

(Expressed in U.S. Dollars)

(Unaudited – Prepared by Management)

30 September 2013

Long-lived assets impairment

Long-term assets of the Company are reviewed for impairment whenever events or circumstances indicate that the carrying amount of assets may not be recoverable, pursuant to guidance established in ASC 360-10-35-15, “Impairment or Disposal of Long-Lived Assets”. Management considers assets to be impaired if the carrying value exceeds the future projected cash flows from related operations (undiscounted and without interest charges). If impairment is deemed to exist, the assets will be written down to fair value. Fair value is generally determined using a discounted cash flow analysis.

Financial instruments

The carrying value of accounts payable and convertible promissory notes approximates their fair value because of the short maturity of these instruments. The Company’s financial risk is the risk that arises from fluctuations in foreign exchange rates and the degree of volatility of these rates. Currently, the Company does not use derivative instruments to reduce its exposure to foreign currency risk.

Basic and diluted loss per share

The Company computes net loss per share in accordance with ASC 260, “Earnings per Share”. ASC 260 requires presentation of both basic and diluted earnings per share (“EPS”) on the face of the income statement. Basic EPS is computed by dividing net loss available to common stockholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excluded all dilutive potential shares if their effect was anti-dilutive.

Income taxes

Deferred income taxes are reported for timing differences between items of income or expense reported in the financial statements and those reported for income tax purposes in accordance with ASC 740, “Income Taxes”, which requires the use of the asset/liability method of accounting for income taxes. Deferred income taxes and tax benefits are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and for tax losses and credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Company provides for deferred taxes for the estimated future tax effects attributable to temporary differences and carry-forwards when realization is more likely than not.

F - 8

First Colombia Gold Corp.

(An Exploration Stage Company)

Notes to Interim Consolidated Financial Statements

(Expressed in U.S. Dollars)

(Unaudited – Prepared by Management)

30 September 2013

Convertible debt

The Company has adopted ASC 470-20, “Debt with Conversion and Other Options” and applies this guidance retrospectively to all periods presented upon those fiscal years. ASC 470-20 requires the liability and equity components to be separately accounted for in a manner that will reflect the entity’s nonconvertible debt borrowing rate. The Company will allocate a portion of the proceeds received from the issuance of convertible notes between a liability and equity component by determining the fair value of the liability component using the Company’s nonconvertible debt borrowing rate. The difference between the proceeds of the notes and the fair value of the liability component will be recorded as a discount on the debt with a corresponding offset to paid-in capital. The resulting discount will be accreted by recording additional non-cash interest expense over the expected life of the convertible notes using the effective interest rate method.

Asset retirement obligations

The Company has adopted ASC 410, “Assets Retirement and Environmental Obligations”, which requires that the fair value of a liability for an asset retirement obligation be recognized in the period in which it is incurred. ASC 410 requires the Company to record a liability for the present value of the estimated site restoration costs with a corresponding increase to the carrying amount of the related long-lived assets. The liability will be accreted and the asset will be depreciated over the life of the related assets. Adjustments for changes resulting from the passage of time and changes to either the timing or amount of the original present value estimate underlying the obligation will be made. As at 30 September 2013, the Company did not have any asset retirement obligations.

Use of estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the period. Actual results may differ from those estimates.

Recent Accounting Pronouncements

In April 2013, FASB issued Accounting Standards Update (“ASU”) No. 2013-07, “Presentation of Financial Statements”. The objective of this Update is to clarify when an entity should apply the liquidation basis of accounting and to provide principles for the measurement of assets and liabilities under the liquidation basis of accounting, as well as any required disclosures. ASU No. 2013-07 will be effective for fiscal years, and interim periods within those years beginning after 15 December 2013, with early adoption permitted. The Company does not expect the adoption of this update will have a material effect on its interim consolidated financial statements.

F - 9

First Colombia Gold Corp.

(An Exploration Stage Company)

Notes to Interim Consolidated Financial Statements

(Expressed in U.S. Dollars)

(Unaudited – Prepared by Management)

30 September 2013

In March 2013, FASB issued ASU No. 2013-05, “Foreign Currency Matters”. The amendments in this update resolve the diversity in practice about whether Subtopic 810-10, “Consolidation – Overall”, or Subtopic 830-30, “Foreign Currency Matters - Translation of Financial Statements”, applies to the release of the cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business (other than a sale of in substance real estate or conveyance of oil and gas mineral rights) within a foreign entity. In addition, the amendments in this update resolve the diversity in practice for the treatment of business combinations achieved in stages (sometimes also referred to as step acquisitions) involving a foreign entity. ASU No. 2013-05 will be effective for fiscal years, and interim periods within those years, beginning after 15 December 2013, with early adoption permitted, and should be applied retrospectively to all prior periods presented. The Company does not expect the adoption of this update will have a material effect on its interim consolidated financial statements.

In February 2013, FASB issued ASU No. 2013-04, “Liabilities”. This update requires an entity to measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting date, as the sum of: (1) the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and (2) any additional amount the reporting entity expects to pay on behalf of its co-obligors. ASU No. 2013-04 will be effective for fiscal years, and interim periods within those years, beginning after 15 December 2013, with early adoption permitted. The Company does not expect the adoption of this update will have a material effect on its interim consolidated financial statements.

3.     Mineral Property Interests

The Company’s exploration and evaluation properties expenditures for the nine month period ended 30 September 2013 and for the year ended 31 December 2012 are as follows:

	South Idaho Silver Project			Boulder Hill Claims			Boulder Hill Project			Uranium Claim  Prospect		Total
	$			$			$			$		$
As at 31 December 2011		32,500			15,000			18,000			-		65,500
Additions		-			-			-			-
Write-down		-			(15,000	)		(18,000	)		-		(33,000	)
As at 31 December 2012		32,500			-			-			-		32,500
Additions		4,150			-			-			1,000		5,150
Provision for write-down		(36,650	)		-			-			-		(36,650	)
As at 30 September 2013		-			-			-			1,000		1,000

F - 10

First Colombia Gold Corp.

(An Exploration Stage Company)

Notes to Interim Consolidated Financial Statements

(Expressed in U.S. Dollars)

(Unaudited – Prepared by Management)

30 September 2013

South Idaho Silver Project

On 7 December 2011 (the “Effective Date”), the Company entered into an Assignment and Assumption Agreement (the “CCS Assignment”) with Castle Creek Silver Inc. (“Castle Creek”), an Idaho corporation, and Robert Ebisch (“Robert E”) to acquire by way of assignment from Castle Creek all of its rights, responsibilities and obligations under an Option to Purchase and Royalty Agreement (the “Purchase Agreement”) dated 15 July 2011, by and between Castle Creek and Robert E. Castle Creek, under the Purchase Agreement, had the option to acquire an undivided 100% of the right, title and interest of Robert E in the unpatented mining claims owned and situated in Owyhee County, Idaho (the “South Idaho Property”).

Pursuant to the terms of the CCS Assignment, Castle Creek transferred and assigned the Company all of its right, title and interest, in, to and under the Purchase Agreement and the Company assumed the assignment of the Purchase Agreement agreeing to be bound, the same extent as Castle Creek, to the terms and conditions of the Purchase Agreement.  The Company agreed to make the following considerations to Castle Creek (Note 10):

·   Issue 1,000,000 restricted shares of the Company’s common stock by 12 December 2011 (issued on 7 December 2011 and valued at $30,000) (Note 9);

·   Pay $50,000 by 15 July 2013 (unpaid) (Note 10); and

·   Castle Creek will be entitled to a 1% net smelter return (“NSR”) from any ore produced from the South Idaho Property.At any time from the Effective Date, the Company has the right to acquire the 1% NSR payable to Castle Creek for $250,000.

The Purchase Agreement and assignment of Castle Creek’s right, title and interest, in, to and under the Purchase Agreement provide that the Company will have exercised the option to acquire an undivided 100% of Robert E’s right, title and interest in and to the Property after incurring an aggregate of $210,000 in exploration expenditures, paying Robert E an aggregate of $80,000 plus 5% of any JVBP.  The Purchase Agreement provides that the cash payments payable to Robert E shall be made according to the following schedule (Note 10):

·   $2,500 on or before 31 January 2012 plus 5% of any JVBP (paid);

·   $2,500 on or before 20 June 2013 plus 5% of any JVBP (paid);

·   $5,000 on or before 15 September 2013 plus 5% of any JVBP (unpaid);

·   $10,000 on or before 15 September 2014 plus 5% of any JVBP;

·   $15,000 on or before 15 September 2015 plus 5% of any JVBP;

·   $20,000 on or before 15 September 2016 plus 5% of any JVBP; and

F - 11

First Colombia Gold Corp.

(An Exploration Stage Company)

Notes to Interim Consolidated Financial Statements

(Expressed in U.S. Dollars)

(Unaudited – Prepared by Management)

30 September 2013

·   $25,000 on or before 15 September 2017 plus 5% of any JVBP.

The Purchase Agreement provides that the exploration expenditures of an aggregate of not less than $210,000 on the South Idaho Property shall be incurred as follows (Note 10):

·   On or before 15 April 2012, incur not less than an aggregate of $10,000 in exploration expenditures (an aggregate of $10,000 incurred);

·   On or before 15 July 2013, incur not less than an aggregate of $20,000 in exploration expenditures (an aggregate of $30,620 incurred);

·   On or before 15 September 2013, incur not less than an aggregate of $100,000 in exploration expenditures (not incurred); and

·   On or before 15 September 2014, incur not less than an aggregate of $210,000 in exploration expenditures.

In addition to the foregoing cash payments, exploration expenditures and filing fees, in order to maintain its interest in the South Idaho Property the Company will be responsible for the following (Note 10):

·   Make advance royalty payments to Robert E of $25,000 per year, commencing on 15 September 2015 and continuing on 15 September each and every year thereafter for so long as the Company retains its interest in the South Idaho Property; and

·   Incur a minimum of $100,000 of annual exploration expenditures on the South Idaho Property on or before 15 September each and every year after 15 September 2015, which could be offset by exploration expenditures in excess of $100,000 in any prior annual period.

On 7 December 2012, the Company entered into an agreement with Castle Creek to waive certain required cash payment and/or exploration expenditure related to the South Idaho Property until renegotiation after 31 March 2013 and before 30 June 2013, provided that a cash payment of $1,200 is paid prior to 31 March 2013 (paid).

On 31 May 2013, the Company entered into an agreement with Castle Creek to waive certain required cash payment and/or exploration expenditure related to the South Idaho Property until 15 July 2013, provided that a cash payment of $3,500 is paid prior to 15 July 2013 (unpaid).  Further, the Company may secure a waiver at any time during the year ended 31 December 2013 for the requirements that become due in 2014 in exchange for cash payment of or issuance of common shares valued at $50,000 (Note 10).

Included in accounts payable and accrued liabilities as at 30 September 2013 are exploration expenditures of $12,245 (31 December 2012 – $10,245) related to the South Idaho Silver Project (Notes 5 and 12).

The Company is currently in default with regards to certain obligations related to the South Idaho Property and is in the process of renegotiating the terms with Castle Creek (Note 14).

F - 12

First Colombia Gold Corp.

(An Exploration Stage Company)

Notes to Interim Consolidated Financial Statements

(Expressed in U.S. Dollars)

(Unaudited – Prepared by Management)

30 September 2013

During the nine month period ended 30 September 2013, the Company recorded a provision for write-down of mineral property interests in the amount of $36,650 (30 June 2012 - $Nil, cumulative - $36,650) related to the South Idaho Property (Notes 10 and 12).

Boulder Hill Claims

On 16 December 2011, the Company entered into a Purchase and Sale Agreement (the “BHM Purchase”) with Boulder Hill Mines, Inc., an Idaho corporation (“Boulder Hill”), to purchase from Boulder Hill three unpatented mining claims situated in Lincoln County, Montana (the “Boulder Hill Claims”) by making the following considerations to Boulder Hill:

·   Issue 500,000 restricted shares of the Company’s common stock by 21 December 2011 (issued on 16 December 2011 and valued at $15,000) (Note 9);

·   Pay $25,000 in cash by 5 May 2013 (unpaid) (Note 10); and

·   Pay $25,000 in cash by 16 December 2013.

On 15 January 2013, the Company amended the agreement entered into on 12 October 2012 with Boulder Hill to extend the waiver of certain required cash payment and/or exploration expenditure related to the Boulder Hill Claims until 5 May 2013.

During the year ended 31 December 2012, the Company was in default related to certain obligations related to the Boulder Hill Claims.  The Company recorded a write-down of mineral property in the amount of $15,000 related to the Boulder Hill Claims.

Boulder Hill Project

On 30 September 2011, the Company entered into a non-binding letter of intent (“LOI”) with Boulder Hill to acquire by way of an assignment from Boulder Hill all of its rights, responsibilities and obligations under a state mineral lease and agreement (the “Option Agreement”) dated 15 July 2008 by and among Boulder Hill, James Ebisch (“James E”) and Ryan Riech (“Riech”).

James E and Riech, under the terms of the Option Agreement, hold the mining and mineral rights to a certain Montana State Metallferrous Gold Lease entered into with the State of Montana (the “Montana Gold Lease”) under which Boulder Hill was granted the exclusive right to prospect, explore, develop and mine for gold, silver and other minerals on a property situated in Lincoln County, Montana (the “Boulder Hill Property”). The Montana Gold Lease is for a 10-year term and is subject to the 5% net smelter return (“NSR”) due to the State of Montana. The Option Agreement was amended on 1 August 2011 to reflect James E as the sole owner of the Montana Gold Lease.

On 16 December 2011 (the “Effective Date”), the Company entered into an Assignment and Assumption Agreement (“BHM Assignment”) with Boulder Hill and James E, whereby Boulder Hill transferred and assigned the Company all of its right, title and interest, in, to and under the Option Agreement and the Company assumed the assignment of the Option Agreement agreeing to be bound, the same extent as Boulder Hill, to the terms and conditions of the Option Agreement.

F - 13

First Colombia Gold Corp.

(An Exploration Stage Company)

Notes to Interim Consolidated Financial Statements

(Expressed in U.S. Dollars)

(Unaudited – Prepared by Management)

30 September 2013

The BHM Assignment required the Company to make the following considerations to Boulder Hill:

·   Issue 500,000 restricted shares of the Company’s common stock by 21 December 2011 (issued on 16 December 2011 and valued at $15,000) (Note 9);

·   Pay $25,000 in cash by 30 September 2013 (unpaid); and

·   Pay $25,000 in cash by 16 December 2013.

The Option Agreement and the BHM Assignment provide that the Company will have exercised the option to acquire an undivided 100% of James E’s right, title and interest in and to the Montana Gold Lease after incurring an aggregate of $210,000 in exploration expenditures, paying James E an aggregate of $80,000 plus 5% of any joint-venture and buyout payments (the “JVBP”) and paying filing fees over the term of the Option Agreement.

The Option Agreement provides that the cash payments payable to James E shall be made according to the following schedule:

·   $20,000 on or before 30 September 2013 plus 5% of any JVBP, of which an initial payment of $3,000 is to be made on or before 30 October 2011 ($3,000 paid on 12 January 2012);

·   $15,000 on or before 30 September 2013 plus 5% of any JVBP (unpaid);

·   $20,000 on or before 15 July 2014 plus 5% of any JVBP; and

·   $25,000 on or before 15 July 2015 plus 5% of any JVBP.

The Option Agreement and claim purchase agreement require that the exploration expenditures of an aggregate of not less than $210,000 on the Property shall be incurred as follows:

·   On or before 30 September 2013, incur not less than an aggregate of $49,000 in exploration expenditures (an aggregate of $34,769 incurred); and

·   On or before 13 December 2013, incur not less than an aggregate of $210,000 in exploration expenditures.

In addition to the foregoing cash payments and exploration expenditures, in order to maintain James E’s leasehold interest in the Boulder Hill Property the Company will be responsible for paying filing fees over the term of the Option Agreement and Boulder Hill Agreement and the following:

·   Make advance royalty payments to James E of $25,000 per year, commencing on 15 July 2015 and continuing on 15 July each and every year thereafter for so long as the Company retains its leasehold interest in the Boulder Hill Property; and

F - 14

First Colombia Gold Corp.

(An Exploration Stage Company)

Notes to Interim Consolidated Financial Statements

(Expressed in U.S. Dollars)

(Unaudited – Prepared by Management)

30 September 2013

·   Incur a minimum of $100,000 of annual exploration expenditures on the Boulder Hill Property on or before 15 July each and every year after 15 July 2011 (not incurred), which could be offset by exploration expenditures in excess of $100,000 in any prior annual period.

On 15 January 2013, the Company amended the agreement entered into on 12 October 2012 with Boulder Hill and James E to extend the waiver of certain required cash payment and/or exploration expenditure related to the Boulder Hill Property until 5 May 2013.

On 5 May 2013, the Company amended the waiver entered into on 15 January 2013 with Boulder Hill and James E to extend the waiver of certain required cash payment and/or exploration expenditure related to the Boulder Hill Property until 30 September 2013 (not completed).

Included in accounts payable and accrued liabilities as at 30 September 2013 are mineral property acquisition costs and exploration expenditures of $4,091 (31 December 2012 – $19,394) related to the Boulder Hill Project (Notes 5 and 12).

During the year ended 31 December 2012, the Company was in default related to certain obligations related to the Boulder Hill Project and as a result, the Company recorded a write-down of mineral property in the amount of $18,000 related to the Boulder Hill Project.

Uranium Claim Prospect

The Company acquired through location two unpatented mining claims in eastern Washington state in July 2013 comprising approximately forty acres.

Skip Silver Prospect

The Company acquired by right of location two unpatented mining claims in the state of Montana in 2012 covering approximately forty acres.

4.     Property and Equipment

					Net Book Value
	Cost		Accumulated Amortization		30 September 2013		31 December 2012 (Audited)
		$		$		$		$
Furniture, computer and office equipment
		47,433		42,880		4,553		5,874

During the nine month period ended 30 September 2013, total additions to property and equipment were $Nil (30 September 2012 - $Nil).

F - 15

First Colombia Gold Corp.

(An Exploration Stage Company)

Notes to Interim Consolidated Financial Statements

(Expressed in U.S. Dollars)

(Unaudited – Prepared by Management)

30 September 2013

5.     Accounts Payable and Accrued Liabilities

Accounts payable and accrued liabilities are non-interest bearing, unsecured and have settlement dates within one year.

On 31 January 2013, the Company issued a total of 37,022,900 class A preferred shares valued at $81,450 ($0.0022 per share) for the settlement of liabilities totaling $126,807 with unrelated parties. The Company recorded a gain of $45,357 related to this settlement (Notes 9 and 12).

On 30 June 2013, the Company entered into agreement with various vendors to convert $90,000 the amounts payable to the vendors to long-term promissory notes. The promissory notes have a term of two years, are unsecured, and bear interest of 5% per annum (Notes 7 and 12).

On 20 August 2013, the Company entered into agreement with a vendor to convert $43,000 of the amount payable to the vendor to a long-term promissory note. The promissory note has a term of two years, is unsecured, and bears interest of 5% per annum.  The Company also wrote down $5,373 of the amount payable to the vendor.  Management does not consider this amount to be payable; however, there is no assurance that a formal claim will not be made against the Company for some or all of these amounts in the future (Notes 7, 10 and 12).

On 30 September 2013, the Company entered into agreement with various vendors to convert $68,100 the amounts payable to the vendors to long-term promissory notes. The promissory notes have a term of two years, are unsecured, and bear interest of 5% per annum (Note 7).

Included in accounts payable and accrued liabilities as at 30 September 2013 is an amount due to a former officer of the Company of $3,551 (31 December 2012 – $3,876). These amounts are non-interest bearing, unsecured and have no fixed terms of repayment (Note 8).

Included in accounts payable and accrued liabilities as at 30 September 2013 is an amount due to a director of the Company of $14,112 (31 December 2012 – $10,817). This amount is non-interest bearing, unsecured and have no fixed terms of repayment (Note 8).

Included in accounts payable and accrued liabilities as at 30 September 2013 is an amount due to an officer of the Company of $12,875 (31 December 2012 – $10,000). This amount is non-interest bearing, unsecured and have no fixed terms of repayment (Note 8).

Included in accounts payable and accrued liabilities as at 30 September 2013 is an amount due to an officer of the Company of $6,250 (31 December 2012 – $4,150). This amount is non-interest bearing, unsecured and have no fixed terms of repayment (Note 8).

Included in accounts payable and accrued liabilities as at 30 September 2013 are mineral property acquisition costs and exploration expenditures of $4,091 (31 December 2012 – $19,394) related to the Boulder Hill Project (Notes 3 and 12).

F - 16

First Colombia Gold Corp.

(An Exploration Stage Company)

Notes to Interim Consolidated Financial Statements

(Expressed in U.S. Dollars)

(Unaudited – Prepared by Management)

30 September 2013

Included in accounts payable and accrued liabilities as at 30 September 2013 are exploration expenditures of $12,245 (31 December 2012 – $10,245) related to the South Idaho Silver Project (Notes 3 and 12).

6.     Convertible Promissory Notes

a.   On 23 November 2011, the Company issued a convertible note to Asher in the amount of $37,500, bearing interest at a rate of 8% per annum on any unpaid principal balance, unsecured, with principal and interest amounts due and payable upon maturity on 28 August 2012 (the “Asher Note”). Any amount of principal or interest amount not paid on 28 August 2012 (the “Default Amount”) shall bear interest of 22% per annum commencing on 28 August 2012 to the date the amount is paid.

Asher has the option to convert any portion of the unpaid principal balance plus accrued and unpaid interest plus the Default Amount into the Company’s common shares at any time commencing 6 months after the date of issuance up to the later of 28 August 2012 or the date of the Default Amount is paid, at a conversion price equal to 58% of the market price for the common shares during the 10 trading days prior to the conversion.

The Asher Note contains a provision limiting the number of shares of common stock into which the Asher Note is convertible to 4.99% of the outstanding shares of the Company’s common stock. However, the provision in the Asher Note may be waived by Asher upon 61 days’ prior notice. The Company has a right of prepayment of the Asher Note anytime from the date of the Asher Note until 180 days thereafter, subject to a prepayment penalty in the amount of 130% to 150% of the outstanding principal and interest of the Asher Note based on the date of prepayment.

The fair value of the beneficial conversion feature was estimated at $27,155 and was recorded as additional paid-in capital.

During the year ended 31 December 2012, the Company issued a total of 42,182,653 common shares to Asher valued at $34,900 upon various conversions of Asher Note, reducing the principal amount to $2,600 as at 31 December 2012 (Notes 9 and 12).

During the nine month period ended 30 September 2013, the Company accrued interest expense of $8 (30 September 2012 - $30,089, cumulative - $30,416), of which $Nil relates to the amortization of debt discount (30 September 2012 – $26,668, cumulative - $27,155) (Note 12).

During the nine month period ended 30 September 2013, the Company issued a total of 5,945,378 common shares to Asher valued at $4,100 upon various conversions of Asher Note, reducing the principal amount by $2,600 to $Nil, and accrued interest amount by $1,500 to $1,761 as at 30 September 2013 (Notes 9 and 12).

During the nine month period ended 30 September 2013, the Company recorded a write-down of accrued interest of $1,761 related to the Asher Note (30 September 2012 - $Nil, cumulative - $1,761) (Note 12).

F - 17

First Colombia Gold Corp.

(An Exploration Stage Company)

Notes to Interim Consolidated Financial Statements

(Expressed in U.S. Dollars)

(Unaudited – Prepared by Management)

30 September 2013

b.   On 16 March 2012, the Company issued a convertible note to Asher in the amount of $37,500, bearing interest at a rate of 8% per annum on any unpaid principal balance, unsecured, with principal and interest amounts due and payable upon maturity on 20 December 2012 (the “Asher Note #2”). Any amount of principal or interest amount not paid on 20 December 2012 (the “Default Amount #2”) shall bear interest of 22% per annum commencing on 20 December 2012 to the date the amount is paid.

Asher has the option to convert any portion of the unpaid principal balance into the Company’s common shares at any time commencing 6 months after the date of issuance up to the later of 20 December 2012 or the date of the Default Amount #2 is paid, at a conversion price equal to 58% of the market price for the common shares during the 10 trading days prior to the conversion.

The Asher Note #2 contains a provision limiting the number of shares of common stock into which the Asher Note #2 is convertible to 4.99% of the outstanding shares of the Company’s common stock. However, the provision in the Asher Note #2 may be waived by Asher upon 61 days’ prior notice. The Company has a right of prepayment of the Asher Note #2 anytime from the date of the Asher Note #2 until 180 days thereafter, subject to a prepayment penalty in the amount of 140% to 150% of the outstanding principal and interest of the Asher Note #2 based on the date of prepayment.

The fair value of the beneficial conversion feature was estimated at $27,155 and was recorded as additional paid-in capital.

During the nine month period ended 30 September 2013, the Company accrued interest expense of $1,625 (30 September 2012 – $20,936, cumulative - $31,321), of which $Nil relates to the amortization of debt discount (30 September 2012 - $19,300, cumulative - $27,155) (Notes 9 and 12).

During the nine month period ended 30 September 2013, the Company issued a total of 47,527,322 common shares to Asher valued at $39,000 upon various conversions of Asher Note #2, reducing the principal amount by $37,500 to $Nil and accrued interest amount by $1,500 to $2,666 as at 30 September 2013 (Notes 9 and 12).

During the nine month period ended 30 September 2013, the Company recorded a write-down of accrued interest of $2,666 related to the Asher Note #2 (30 September 2012 - $Nil, cumulative - $2,666) (Note 12).

c.   On 6 June 2012, the Company issued a convertible note to Asher in the amount of $27,500, bearing interest at a rate of 8% per annum on any unpaid principal balance, unsecured, with principal and interest amounts due and payable upon maturity on 6 March 2013 (the “Asher Note #3”). Any amount of principal or interest amount not paid on 6 March 2013 (the “Default Amount #3”) shall bear interest of 22% per annum commencing on 6 March 2013 to the date the amount is paid.

Asher has the option to convert any portion of the unpaid principal balance into the Company’s common shares at any time commencing 6 months after the date of issuance up to the later of 6 March 2013 or the date of the Default Amount #3 is paid, at a conversion price equal to 51% of the market price for the common shares during the 10 trading days prior to the conversion.

F - 18

First Colombia Gold Corp.

(An Exploration Stage Company)

Notes to Interim Consolidated Financial Statements

(Expressed in U.S. Dollars)

(Unaudited – Prepared by Management)

30 September 2013

The Asher Note #3 contains a provision limiting the number of shares of common stock into which the Asher Note #3 is convertible to 9.99% of the outstanding shares of the Company’s common stock. However, the provision in the Asher Note #3 may be waived by Asher upon 61 days’ prior notice. The Company has a right of prepayment of the Asher Note #3 anytime from the date of the Asher Note #3 until 180 days thereafter, subject to a prepayment penalty in the amount of 140% to 150% of the outstanding principal and interest of the Asher Note #3 based on the date of prepayment.

The fair value of the beneficial conversion feature was estimated at $26,422 and was recorded as additional paid-in capital.

During the nine month period ended 30 September 2013, the Company was in default of the Asher Note #3 and the Company recorded a penalty in the amount of $13,750 (50% of the original principal) pursuant to the Asher Note #3 agreement, which has been recorded as interest expense (Note 12).

During the nine month period ended 30 September 2013, the Company accrued interest expense of $20,847 (30 September 2012 - $11,926, cumulative - $42,232), of which $6,291 relates to the amortization of the debt discount (30 September 2012 - $11,227, cumulative - $26,422) and $13,750 relates to the default penalty (30 September 2012 - $Nil, cumulative - $13,750) (Note 12).

During the nine month period ended 30 September 2013, the Company issued a total of 60,393,147 common shares to Asher valued at $42,350 upon various conversions of Asher Note #3, reducing the principal amount by $41,250 to $Nil and accrued interest amount by $1,100 to $960 as at 30 September 2013 (Notes 9 and 12).

During the nine month period ended 30 September 2013, the Company recorded a write-down of accrued interest of $960 related to the Asher Note #3 (30 September 2012 - $Nil, cumulative - $960) (Note 12).

d.   On 18 December 2012, the Company issued a convertible note to Asher in the amount of $27,500, bearing interest at a rate of 8% per annum on any unpaid principal balance, unsecured, with principal and interest amounts due and payable upon maturity on 20 September 2013 (the “Asher Note #4”). Any amount of principal or interest amount not paid on 20 September 2013 (the “Default Amount #4”) shall bear interest of 22% per annum commencing on 20 September 2013 to the date the amount is paid.

Asher has the option to convert any portion of the unpaid principal balance into the Company’s common shares at any time commencing 6 months after the date of issuance up to the later of 20 September 2013 or the date of the Default Amount #4 is paid, at a conversion price equal to 45% of the market price for the common shares during the 30 trading days prior to the conversion.

F - 19

First Colombia Gold Corp.

(An Exploration Stage Company)

Notes to Interim Consolidated Financial Statements

(Expressed in U.S. Dollars)

(Unaudited – Prepared by Management)

30 September 2013

The Asher Note #4 contains a provision limiting the number of shares of common stock into which the Asher Note #4 is convertible to 9.99% of the outstanding shares of the Company’s common stock. However, the provision in the Asher Note #4 may be waived by Asher upon 61 days’ prior notice. The Company has a right of prepayment of the Asher Note #4 anytime from the date of the Asher Note #4 until 180 days thereafter, subject to a prepayment penalty in the amount of 140% to 150% based on the date of repayment.

The fair value of the beneficial conversion feature was estimated at $27,500 and was recorded as additional paid-in capital.

During the nine month period ended 30 September 2013, the Company accrued interest expense of $19,608 (30 September 2012 – $Nil, cumulative - $20,981), of which $18,035 relates to the amortization of debt discount (30 September 2012 - $Nil, cumulative - $19,330) (Notes 9 and 12).

During the nine month period ended 30 September 2013, the Company issued a total of 113,144,698 common shares to Asher valued at $28,600 upon various conversions of Asher Note #4, reducing the principal amount by $27,500 to $Nil and accrued interest amount by $1,100 to $551 as at 30 September 2013 (Notes 9 and 12).

During the nine month period ended 30 September 2013, the Company recorded a write-down of accrued interest of $551 related to the Asher Note #4 (30 September 2012 - $Nil, cumulative - $551) (Note 12).

e.   On 21 February 2013, the Company issued a convertible note to Asher in the amount of $27,500, bearing interest at a rate of 8% per annum on any unpaid principal balance, unsecured, with principal and interest amounts due and payable upon maturity on 25 November 2013 (the “Asher Note #5”). Any amount of principal or interest amount not paid on 25 November 2013 (the “Default Amount #5”) shall bear interest of 22% per annum commencing on 25 November 2013 to the date the amount is paid.

Asher has the option to convert any portion of the unpaid principal balance into the Company’s common shares at any time commencing 6 months after the date of issuance up to the later of 25 November 2013 or the date of the Default Amount #5 is paid, at a conversion price equal to 45% of the market price for the common shares during the 30 trading days prior to the conversion.

The Asher Note #5 contains a provision limiting the number of shares of common stock into which the Asher Note #5 is convertible to 9.99% of the outstanding shares of the Company’s common stock. However, the provision in the Asher Note #5 may be waived by Asher upon 61 days’ prior notice. The Company has a right of prepayment of the Asher Note #5 anytime from the date of the Asher Note #5 until 180 days thereafter, subject to a prepayment penalty in the amount of 140% to 150% based on the date of repayment.

The fair value of the beneficial conversion feature was estimated at $27,500 and was recorded as additional paid-in capital.

F - 20

First Colombia Gold Corp.

(An Exploration Stage Company)

Notes to Interim Consolidated Financial Statements

(Expressed in U.S. Dollars)

(Unaudited – Prepared by Management)

30 September 2013

During the nine month period ended 30 September 2013, the Company accrued interest expense of $23,162 (30 September 2012 - $Nil, cumulative - $23,162), of which $21,842 relates to the amortization of debt discount (30 September 2012 - $Nil, cumulative - $21,842) (Note 12).

During the nine month period ended 30 September 2013, the Company issued a total of 58,174,602 common shares to Asher valued at $9,700 upon various conversions of Asher Note #5, reducing the principal amount by $9,700 to $17,800 as at 30 September 2013 (Notes 9 and 12).

f.   On 29 April 2013, the Company issued a convertible note to Asher in the amount of $32,500, bearing interest at a rate of 8% per annum on any unpaid principal balance, unsecured, with principal and interest amounts due and payable upon maturity on 31 January 2014 (the “Asher Note #6”). Any amount of principal or interest amount not paid on 31 January 2014 (the “Default Amount #6”) shall bear interest of 22% per annum commencing on 31 January 2014 to the date the amount is paid.

Asher has the option to convert any portion of the unpaid principal balance into the Company’s common shares at any time commencing 6 months after the date of issuance up to the later of 31 January 2014 or the date of the Default Amount #6 is paid, at a conversion price equal to 45% of the market price for the common shares during the 30 trading days prior to the conversion.

The Asher Note #6 contains a provision limiting the number of shares of common stock into which the Asher Note #6 is convertible to 9.99% of the outstanding shares of the Company’s common stock. However, the provision in the Asher Note #6 may be waived by Asher upon 61 days’ prior notice. The Company has a right of prepayment of the Asher Note #6 anytime from the date of the Asher Note #6 until 180 days thereafter, subject to a prepayment penalty in the amount of 140% to 150% based on the date of repayment.

The fair value of the beneficial conversion feature was estimated at $32,500 and was recorded as additional paid-in capital.

During the nine month period ended 30 September 2013, the Company accrued interest expense of $19,041 (30 September 2012 - $Nil, cumulative - $19,041), of which $17,951 relates to the amortization of debt discount (30 September 2012 - $Nil, cumulative - $17,951) (Note 12).

g.   On 12 August 2013, the Company issued a convertible note to Asher in the amount of $12,995, bearing interest at a rate of 8% per annum on any unpaid principal balance, unsecured, with principal and interest amounts due and payable upon maturity on 31 May 2014 (the “Asher Note #7”). Any amount of principal or interest amount not paid on 31 May 2014 (the “Default Amount #7”) shall bear interest of 22% per annum commencing on 31 May 2014 to the date the amount is paid.

Asher has the option to convert any portion of the unpaid principal balance into the Company’s common shares at any time commencing 6 months after the date of issuance up to the later of 31 May 2014 or the date of the Default Amount #6 is paid, at a conversion price equal to 45% of the market price for the common shares during the 30 trading days prior to the conversion.

F - 21

First Colombia Gold Corp.

(An Exploration Stage Company)

Notes to Interim Consolidated Financial Statements

(Expressed in U.S. Dollars)

(Unaudited – Prepared by Management)

30 September 2013

The Asher Note #7 contains a provision limiting the number of shares of common stock into which the Asher Note #7 is convertible to 9.99% of the outstanding shares of the Company’s common stock. However, the provision in the Asher Note #6 may be waived by Asher upon 61 days’ prior notice. The Company has a right of prepayment of the Asher Note #7 anytime from the date of the Asher Note #7 until 180 days thereafter, subject to a prepayment penalty in the amount of 140% to 150% based on the date of repayment.

The fair value of the beneficial conversion feature was estimated at $12,995 and was recorded as additional paid-in capital.

During the nine month period ended 30 September 2013, the Company accrued interest expense of $2,472 (30 September 2012 - $Nil, cumulative - $2,472), of which $2,332 related to the amortization of debt discount (30 September 2012 - $Nil, cumulative - $2,332).

h.   The following is the summary of convertible promissory notes that are issued and outstanding as at 30 September 2013 and 31 December 2012:

	Principal, net of debt discount		Accrued interest		As at 30 September 2013		As at 31 December 2012 (Audited)
					$		$
Asher Note		-		-		-		5,853
Asher Note #2		-		-		-		40,041
Asher Note #3		-		-		-		22,463
Asher Note #4		-		-		-		1,373
Asher Note #5		12,142		1,320		13,462		-
Asher Note #6		17,951		1,090		19,041		-
Asher Note #7		2,332		140		2,472		-
		32,425		2,550		34,975		69,730

7.     Promissory Notes

On 30 June 2013, the Company entered into agreement with various vendors to convert $90,000 of the amounts payable to the vendors to long-term promissory notes. The promissory notes have a term of two years, are unsecured, and bear interest of 5% per annum that is payable quarterly beginning 30 September 2013 (Note 5).

F - 22

First Colombia Gold Corp.

(An Exploration Stage Company)

Notes to Interim Consolidated Financial Statements

(Expressed in U.S. Dollars)

(Unaudited – Prepared by Management)

30 September 2013

On 20 August 2013, the Company entered into agreement with a vendor to convert $43,000 of the amount payable to the vendor to a long-term promissory note. The promissory note has a term of two years, is unsecured, and bears interest of 5% per annum that is payable quarterly beginning 31 December 2013 (Note 5).

On 30 September 2013, the Company entered into agreement with various vendors to convert $68,100 of the amounts payable to the vendors to long-term promissory notes. The promissory notes have a term of two years, are unsecured, and bear interest of 5% per annum that is payable quarterly beginning 31 March 2014 (Note 5).

During the nine month period ended 30 September 2013, the Company accrued interest of $1,376 (30 September 2012 - $Nil, cumulative - $1,376).  As at 30 September 2013, the balance of promissory notes consists of principal of $201,100 (31 December 2012 - $Nil) and accrued interest of $1,376 (31 December 2012 - $Nil) (Note 12).

8.     Due to Related Parties and Related Party Transactions

Included in accounts payable and accrued liabilities as at 30 September 2013 is an amount due to a former officer of the Company of $3,551 (31 December 2012 – $3,876). These amounts are non-interest bearing, unsecured and have no fixed terms of repayment (Note 5).

Included in accounts payable and accrued liabilities as at 30 September 2013 is an amount due to a director of the Company of $14,112 (31 December 2012 – $10,817). This amount is non-interest bearing, unsecured and have no fixed terms of repayment (Note 5).

Included in accounts payable and accrued liabilities as at 30 September 2013 is an amount due to an officer of the Company of $12,875 (31 December 2012 – $10,000). This amount is non-interest bearing, unsecured and have no fixed terms of repayment (Note 5).

Included in accounts payable and accrued liabilities as at 30 September 2013 is an amount due to an officer of the Company of $6,250 (31 December 2012 – $4,150). This amount is non-interest bearing, unsecured and have no fixed terms of repayment (Note 5).

During the nine month period ended 30 September 2013, the Company paid or accrued $6,500 (30 September 2012 – $3,250) for consulting fees to an officer of the Company.

During the nine month period ended 30 September 2013, the Company paid or accrued $13,000 (30 September 2012 – $1,517) for consulting fees to a director of the Company.

During the nine month period ended 30 September 2013, the Company paid or accrued $12,500 (30 September 2012 - $Nil) for consulting fees to a director of the Company.

During the nine month period ended 30 September 2013, the Company issued a total of 10,545,600 class A preferred shares valued at $23,200 ($0.0022 per share) for the settlement of liabilities totaling $23,200 with officers and directors of the Company (Notes 9 and 12).

F - 23

First Colombia Gold Corp.

(An Exploration Stage Company)

Notes to Interim Consolidated Financial Statements

(Expressed in U.S. Dollars)

(Unaudited – Prepared by Management)

30 September 2013

9.     Common Stock

Authorized

The total authorized capital consists of

·   850,000,000 common shares with par value of $0.00001

·   150,000,000 blank check preferred shares with no par value

·   50,000,000 designated class A preferred shares with par value of $0.001

Issued and outstanding

As at 30 September 2013, the total issued and outstanding capital stock is 368,871,415 common shares with a par value of $0.00001 per share.

As of 30 September 2013, the total issued and outstanding series A preferred shares is 47,568,500 with a par value of $0.001.

On 30 September 2013, the Company issued 19,285,714 common shares valued at $2,700 upon conversion of Asher Note #5 (Note 6).

On 16 September 2013, the Company issued 19,444,444 common shares valued at $3,500 upon conversion of Asher Note #5 (Note 6).

On 12 September 2013, the Company issued 19,444,444 common shares valued at $3,500 upon conversion of Asher Note #5 (Note 6).

On 20 August 2013, the Company issued 18,571,429 common shares valued at $3,900 upon conversion of Asher Note #4 (Note 6).

On 6 August 2013, the Company issued 20,869,565 common shares valued at $4,800 upon conversion of Asher Note #4 (Note 6).

On 1 August 2013, the Company issued 20,740,741 common shares valued at $5,600 upon conversion of Asher Note #4 (Note 6).

On 30 July 2013, the Company issued 20,740,741 common shares valued at $5,600 upon conversion of Asher Note #4 (Note 6).

On 25 July 2013, the Company issued 20,740,741 common shares valued at $5,600 upon conversion of Asher Note #4 (Note 6).

On 23 July 2013, the Company issued 11,481,481 common shares valued at $3,100 upon conversion of Asher Note #4 (Note 6).

F - 24

First Colombia Gold Corp.

(An Exploration Stage Company)

Notes to Interim Consolidated Financial Statements

(Expressed in U.S. Dollars)

(Unaudited – Prepared by Management)

30 September 2013

On 10 May 2013, the Company issued 2,840,939 common shares valued at $1,250 upon conversion of Asher Note #3 (Note 6).

On 8 May 2013, the Company issued 11,111,111 common shares valued at $6,000 upon conversion of Asher Note #3 (Note 6).

On 3 May 2013, the Company issued 11,666,667 common shares valued at $6,300 upon conversion of Asher Note #3 (Note 6).

On 1 May 2013, the Company issued 11,694,915 common shares valued at $6,900 upon conversion of Asher Note #3 (Note 6).

On 29 April 2013, the Company issued 11,625,000 common shares valued at $9,300 upon conversion of Asher Note #3 (Note 6).

On 25 April 2013, the Company issued 11,454,545 common shares valued at $12,600 upon conversion of Asher Note #3 (Note 6).

On 24 April 2013, the Company issued 2,150,000 common shares valued at $2,580 upon conversion of Asher Note #2 (Note 6).

On 23 April 2013, the Company issued 5,833,333 common shares valued at $7,000 upon conversion of Asher Note #2 (Note 6).

On 16 April 2013, the Company issued 11,766,666 common shares valued at $14,120 upon conversion of Asher Note #2 (Note 6).

On 20 March 2013, the Company issued 4,883,721 common shares valued at $2,100 upon conversion of Asher Note #2 (Note 6).

On 5 March 2013, the Company issued 4,878,049 common shares valued at $2,000 upon conversion of Asher Note #2 (Note 6).

On 15 February 2013, the Company issued 5,000,000 common shares valued at $2,700 upon conversion of Asher Note #2 (Note 6).

On 8 February 2013, the Company issued 4,354,839 common shares valued at $2,700 upon conversion of Asher Note #2 (Note 6).

On 4 February 2013, the Company issued 4,375,000 common shares valued at $2,800 upon conversion of Asher Note #2 (Note 6).

On 31 January 2013, the Company issued a total of 47,568,500 class A preferred shares valued at $104,650 ($0.0022 per share) in settlement of liabilities to officers, directors and unrelated parties (Notes 5, 8 and 12).

F - 25

First Colombia Gold Corp.

(An Exploration Stage Company)

Notes to Interim Consolidated Financial Statements

(Expressed in U.S. Dollars)

(Unaudited – Prepared by Management)

30 September 2013

On 24 January 2013, the Company issued 4,285,714 common shares valued at $3,000 upon conversion of Asher Note #2 (Note 6).

On 23 January 2013, the Company amended its number of authorized shares of common stock and the related par value from 200,000,000 to 850,000,000 subsequent to the approval of the Board of Directors and the holders of a majority of the outstanding shares of the common stock and class A Preferred Convertible stock.

On 16 January 2013, the Company issued 3,088,235 common shares valued at $2,100 upon conversion of Asher Note (Note 6).

On 2 January 2013, the Company issued 2,857,143 common shares valued at $2,000 upon conversion of Asher Note (Note 6).

On 19 December 2012, the Company issued 2,739,726 common shares valued at $2,000 upon conversion of Asher Note (Note 6).

On 11 December 2012, the Company issued 2,857,143 common shares valued at $2,000 upon conversion of Asher Note (Note 6).

On 6 December 2012, the Company issued 2,784,810 common shares valued at $2,200 upon conversion of Asher Note (Note 6).

On 29 November 2012, the Company issued 2,876,712 common shares valued at $2,100 upon conversion of Asher Note (Note 6).

On 15 November 2012, the Company designated 50,000,000 of the 200,000,000 authorized preferred shares as class A preferred shares with a par value of $0.001 per share. Each class A preferred share is convertible into two common shares of the Company at the option of the holder and may be redeemed with 10 days’ notice at $0.01 per class A preferred share.

On 9 November 2012, the Company issued 2,758,621 common shares valued at $1,600 upon conversion of Asher Note (Note 6).

On 2 November 2012, the Company issued 2,833,333 common shares valued at $1,700 upon conversion of Asher Note (Note 6).

On 18 October 2012, the Company issued 2,878,788 common shares valued at $1,900 upon conversion of Asher Note (Note 6).

On 10 October 2012, the Company issued 2,784,810 common shares valued at $2,200 upon conversion of Asher Note (Note 6).

F - 26

First Colombia Gold Corp.

(An Exploration Stage Company)

Notes to Interim Consolidated Financial Statements

(Expressed in U.S. Dollars)

(Unaudited – Prepared by Management)

30 September 2013

On 2 October 2012, the Company issued 2,784,810 common shares valued at $2,200 upon conversion of Asher Note (Note 6).

On 1 October 2012, the Company issued 2,151,899 common shares valued at $1,700 upon conversion of Asher Note (Note 6).

On 27 September 2012, the Company issued 2,117,647 common shares valued at $1,800 upon conversion of Asher Note (Note 6).

On 12 September 2012, the Company issued 2,100,000 common shares valued at $2,100 upon conversion of Asher Note (Note 6).

On 7 September 2012, the Company issued 2,166,667 common shares valued at $2,600 upon conversion of Asher Note (Note 6).

On 16 December 2011, the Company issued a total of 1,000,000 common shares valued at $30,000 as consideration to Boulder Hill pursuant to the BHM Purchase and BHM Assignment. The fair value is equal to the market price of the Company’s stock on the date of the transaction (Note 3).

On 7 December 2011, the Company issued 1,000,000 common shares valued at $30,000 as consideration to Castle Creek pursuant to the CCS Assignment. The fair value is equal to the market price of the Company’s stock on the date of the transaction (Note 3).

On 14 February 2011, the Company issued 1,000,000 common shares upon the exercise of share purchase warrants with an exercise price of $0.10 per warrant for total proceeds of $100,000.

On 14 December 2010, the Company issued 1,500,000 common shares upon the exercise of share purchase warrants with an exercise price of $0.10 per warrant for total proceeds of $150,000.

On 30 November 2010, the Company issued 150,000 common shares upon the exercise of share purchase warrants with an exercise price of $0.10 per warrant for total proceeds of $15,000.

On 25 March 2010, the Company issued 18,750,000 units at a price of $0.10 per unit (the “Units”) for proceeds of $1,775,000, net of share issue costs of $100,000. Each Unit consists of one common share with par value $0.00001 and one share purchase warrant. Each share purchase warrant entitles the holder to purchase one common share at a price of $0.10 commencing six months from the closing date of the offering up to 25 March 2011. During the year ended 31 December 2011, 1,000,000 of the related share purchase warrants in this series were exercised. As at 30 June 2013, none of the related share purchase warrants in this series remain outstanding.

On 9 March 2010, the Company issued 5,000,000 common shares valued at $1,250,000 ($0.25 per common share) pursuant to the Temasek Agreement. The fair value is equal to the market price of the Company’s stock on the date of the transaction.

During the year ended 31 December 2009, the Company issued 3,500,000 common shares valued at a $385,000 ($0.11 per common share) pursuant to the Temasek Agreement. The fair value is equal to the market price of the Company’s stock on the date of the transaction.

F - 27

First Colombia Gold Corp.

(An Exploration Stage Company)

Notes to Interim Consolidated Financial Statements

(Expressed in U.S. Dollars)

(Unaudited – Prepared by Management)

30 September 2013

During the year ended 31 December 2009, the Company issued 140,000 common shares for total proceeds of $18,900 ($0.15 per common share), net of share issue costs of $2,100.

During the year ended 31 December 2009, the Company issued 5,272,333 common shares for total proceeds of $711,765 ($0.15 per common share), net of share issue costs of $79,085.

During the year ended 31 December 2008, the Company issued 2,500,000 common shares valued at $625,000 ($0.25 per common share) pursuant to the Temasek Agreement. The fair value is equal to the market price of the Company’s stock on the date of the transaction.

During the year ended 31 December 2008, the Company completed a one new for twenty old common share reverse stock split. The Company’s share transactions, including the weighted average number of common shares outstanding calculation for purposes of determining earnings per share, have been restated retroactively to reflect all of the above corporate capital transactions in these interim consolidated financial statements.

Stock options

The following stock options are outstanding as at 30 September 2013 (31 December 2012 – 325,000):

	Number of options		Exercise price		Remaining life (years)
			$
Options		250,000		0.07		0.20
Options		75,000		0.15		8.09
		325,000

During the year ended 31 December 2007, the Company adopted the Stock Incentive Plan (the “Plan”), which provides for the grant of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock, performance shares and performance units, and stock awards to officers, directors or employees of, as well as advisers and consultants to, the Company.

All stock options and rights are to vest over a period determined by the Board of Directors and expire not more than ten years from the date granted. Pursuant to the Plan, the maximum aggregate number of shares that may be issued for awards is 500,000 and the maximum aggregate number of shares that may be issued for incentive stock options is 500,000.

During the year ended 31 December 2007, the Company granted 167,500 options to officers, directors and consultants of the Company to purchase common shares of the Company at a price of $25 per common share on or before 17 April 2017 and vesting as to one-quarter of the common shares under the stock option on 17 April 2007 and one-quarter every six months thereafter in accordance with the terms and conditions of the Company’s Plan.  During the year ended 31 December 2008, all of the related stock options in this series were forfeited.

F - 28

First Colombia Gold Corp.

(An Exploration Stage Company)

Notes to Interim Consolidated Financial Statements

(Expressed in U.S. Dollars)

(Unaudited – Prepared by Management)

30 September 2013

During the year ended 31 December 2011, the Company granted 250,000 options at a price of $0.07 per share expiring on 10 December 2013, 75,000 options at a price of $0.07 per share expiring on 28 November 2012 and 75,000 options at a price of $0.15 per share expiring on 31 October 2021.  All of these stock options vest immediately.

The Company had no stock option activities during the nine month periods ended 30 September 2013 and 2012.

Warrants

As at 30 September 2013, there were Nil (31 December 2012 - Nil) share purchase warrants outstanding.

The Company had no warrant activities during the nine month periods ended 30 September 2013 and 2012.

10.   Commitments and Contingencies

a.   As at 30 September 2013, the Company became in default with regards to certain obligations related to the South Idaho Property and is in the process of renegotiating the terms with Castle Creek (Notes 3 and 14).

b.   As at 30 September 2013, the Company is in default with regards to certain obligations related to the Boulder Hill Claims and is in the process of renegotiating the terms with Boulder Hill (Note 3).

c.   As at 30 September 2013, the Company is in default with regards to certain obligations related to the Boulder Hill Project and is in the process of renegotiating the terms with James E (Note 3).

d.   In November 2011, the Company entered into a contract, commencing 1 December 2011, with each of an unrelated individual and an unrelated company, to provide consulting services, subject to the supervision of the Company’s Chief Executive Officer, related to the exploration and development of mineral properties, operational activities and international business operations for a monthly payment of $2,500 each.

e.   The Company is committed to making repayments related to the convertible promissory notes payable to Asher (Note 6).

f.   The Company is committed to making repayments related to the promissory notes payable to various vendors (Note 7).

g.   During the nine month period ended 30 September 2013, the Company entered into a memorandum of understanding (the “MOU”) with an unrelated party to enter into a definitive agreement within 180 days for the Company to earn a fifty percent interest in the Nile Mine project. The Company has not entered into a final and definitive agreement at the time.

h.   On 27 July 2013, the Company entered into a contract with an unrelated company to provide consulting services and introductions in order to secure further funding for the Company. The consultant is entitled to 10% of the gross funding received in relation to the contract.

F - 29

First Colombia Gold Corp.

(An Exploration Stage Company)

Notes to Interim Consolidated Financial Statements

(Expressed in U.S. Dollars)

(Unaudited – Prepared by Management)

30 September 2013

i.   On 20 August 2013, the Company wrote down $5,373 of the amount payable to a vendor.  Management does not consider this amount to be payable; however, there is no assurance that a formal claim will not be made against the Company for some or all of these amounts in the future (Notes 5 and 12).

11.   Geographic Areas

Prior to the operations of acquisition and exploration of mineral properties, the Company’s areas of operations were primarily in the South America. Since the commencement of acquisition and exploration of mineral properties, during the year ended 31 December 2006, the Company’s principal mineral property activities have been in Finland. During the year ended 31 December 2008, the Company re-focused its acquisition and exploration of mineral properties operations to Peru. During the year ended 31 December 2011, the Company re-focused its activities to Colombia and the United States. During the nine month period ended 30 September 2013, the Company does not have any material activities outside of the United States. As at 30 September 2013, the Company does not have any material assets outside of the United States.

12.   Supplemental Disclosures with Respect to Cash Flows

Included in accounts payable and accrued liabilities as at 30 September 2013 are mineral property acquisition costs and exploration expenditures of $3,091 (31 December 2012 – $19,394) related to the Boulder Hill Project (Notes 3 and 5).

Included in accounts payable and accrued liabilities as at 30 September 2013 are exploration expenditures of $11,245 (31 December 2012 – $10,245) related to the South Idaho Silver Project (Notes 3 and 5).

During the year ended 31 December 2012, the Company recorded a write-down of mineral property in the amount of $33,000 in relation to the Boulder Hill Claims and Boulder Hill Property (Note 3).

During the nine month period ended 30 September 2013, the Company recorded a provision for write-down of mineral property in the amount of $36,650 (30 September 2012 - $Nil) in relation to the South Idaho Property (Notes 3, 10 and 14).

During the nine month period ended 30 September 2013, the Company accrued a total interest expense of $86,763 (30 September 2012 – $62,951) related to the convertible debentures, of which $66,451 relates to the amortization of debt discount (30 September 2012 – $57,195) and $13,750 relates to the default penalty (30 September 2012 - $Nil) (Note 6).

During the nine month period ended 30 September 2013, the Company recorded a write-down of accrued interest in the amount of $5,938 (30 September 2012 - $Nil) in relation to the Asher Note, Asher Note #2, Asher Note #3 and Asher Note #4 (Note 6).

During the nine month period ended 30 September 2013, the Company issued a total of 47,568,500 class A preferred shares valued at $104,650 ($0.0022 per share) for the settlement of liabilities totaling $150,007 with officers, directors and unrelated parties. The Company recorded a gain of $45,357 related to this settlement (Notes 5, 8 and 9).

F - 30

First Colombia Gold Corp.

(An Exploration Stage Company)

Notes to Interim Consolidated Financial Statements

(Expressed in U.S. Dollars)

(Unaudited – Prepared by Management)

30 September 2013

During the nine month period ended 30 September 2013, the Company entered into agreements with various vendors to convert a total of $201,100 the amounts payable to the vendors to long-term promissory notes. The promissory notes have a term of two years, are unsecured, and bear interest of 5% per annum.  During the nine month period ended 30 September 2013, the Company accrued interest of $1,376 (30 September 2012 - $Nil, cumulative - $1,376) (Notes 5 and 7).

During the nine month period ended 30 September 2013, the Company wrote down $5,373 of the amount payable to a vendor.  Management does not consider this amount to be payable; however, there is no assurance that a formal claim will not be made against the Company for some or all of these amounts in the future (Notes 5 and 10).

	For the period from the date of inception on 5 September 1997 to 30 September 2013			For the nine month period ended 30 September 2013		For the nine month period ended 30 September 2012
	$			$		$
Supplemental cash flows information
Interest expense		1,906			-		-
Foreign exchange (gain) loss		21,787			-		-
Income taxes paid		-			-		-
Supplemental disclosure of non-cash investing and financing
Common shares issued for oil and gas property ($25 per share)		10,000			-		-
Common shares issued for services ($6 per share)		50,000			-		-
Donated consulting services		16,200			-		-
Common shares cancelled and returned		(2	)		-		-
Common shares issued for equity acquisition of Finmetal ($25.60 per share)		1,280,000			-		-
Restricted shares issued ($24.80 per share)		2,418,000			-		-
Common shares issued for finder’s fee ($10 per unit)		254,500			-		-
Warrants issued		100,421			-		-
Common shares issued for finder’s fee for mineral property interests ($26.80 per share)		536,000			-		-
Common shares issued for acquisition of mineral rights (deemed at $0.003 to $0.25 per share)		2,320,000			-		-
Common shares issued upon conversions of promissory note ($0.00011 to $0.0080 per share)		158,650			123,750		-
Preferred shares issued for settlement of debt ($0.0022 per share)		104,650			104,650		-

F - 31

First Colombia Gold Corp.

(An Exploration Stage Company)

Notes to Interim Consolidated Financial Statements

(Expressed in U.S. Dollars)

(Unaudited – Prepared by Management)

30 September 2013

13.   Fair Value of Financial Instruments

A fair value hierarchy was established that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurements).

The fair values of the financial instruments were determined using the following input levels and valuation techniques:

Level 1: classification is applied to any asset or liability that has a readily available quoted market price from an active market where there is significant transparency in the executed/quoted price.

Level 2: classification is applied to assets and liabilities that have evaluated prices where the data inputs to these valuations are observable either directly or indirectly, but do not represent quoted market prices from an active market.

Level 3: classification is applied to assets and liabilities when prices are not derived from existing market data and requires us to develop our own assumptions about how market participants would price the asset or liability.

As at 30 September 2013, the carrying amounts of accounts payable and convertible promissory notes approximated their estimated fair values because of the short maturity of these financial instruments.

As at 30 September 2013, the carrying amount of long-term debt and other financing was $202,476 (31 December 2012 - $Nil).

The fair value of the beneficial conversion feature was estimated at $72,995 (31 December 2012 – $81,077), and was recorded as a component of equity, of which $72,995 (31 December 2012 - $81,077) would be a Level 1 fair value and $Nil (31 December 2012 - $Nil) would be a Level 2 fair value.

Credit Risk

Credit risk is the risk of an unexpected loss if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises primarily from the Company’s cash and cash equivalents. The Company manages its credit risk relating to cash and cash equivalents by dealing only with highly-rated United States financial institutions. As a result, credit risk is considered insignificant.

Currency Risk

The majority of the Company’s cash flows and financial assets and liabilities are denominated in US dollars, which is the Company’s functional and reporting currency. Foreign currency risk is limited to the portion of the Company’s business transactions denominated in currencies other than the US dollar.

F - 32

First Colombia Gold Corp.

(An Exploration Stage Company)

Notes to Interim Consolidated Financial Statements

(Expressed in U.S. Dollars)

(Unaudited – Prepared by Management)

30 September 2013

The Company monitors and forecasts the values of net foreign currency cash flow and balance sheet exposures and from time to time could authorize the use of derivative financial instruments such as forward foreign exchange contracts to economically hedge a portion of foreign currency fluctuations. Currently, the Company does not use derivative instruments to reduce its exposure to foreign currency risk.

Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company manages liquidity risk by continuously monitoring actual and projected cash flows and matching the maturity profile of financial assets and liabilities. The Company had a working capital deficit of $323,584 at 30 September 2013 (31 December 2012 – $570,498), but management cannot provide assurance that the Company will ultimately achieve profitable operations or become cash flow positive, or raise additional debt and/or equity capital.

Other Risks

Unless otherwise noted, the Company is not exposed to significant interest rate risk and commodity price risk.

14.   Subsequent Events

There were no events that occurred during the period from the nine month period ended 30 September 2013 to the date the interim consolidated financial statements were available to be issued.

F - 33

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “may,” “should,” “could,” “will,” “plan,” “future,” “continue,” and other expressions that are predictions of or indicate future events and trends and that do not relate to historical matters identify forward-looking statements. These forward-looking statements are based largely on our expectations or forecasts of future events, can be affected by inaccurate assumptions, and are subject to various business risks and known and unknown uncertainties, a number of which are beyond our control. Therefore, actual results could differ materially from the forward-looking statements contained in this document, and readers are cautioned not to place undue reliance on such forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. A wide variety of factors could cause or contribute to such differences and could adversely impact revenues, profitability, cash flows and capital needs. There can be no assurance that the forward-looking statements contained in this document will, in fact, transpire or prove to be accurate.

Important factors that may cause the actual results to differ from the forward-looking statements, projections or other expectations include, but are not limited to, the following:

● risk that we will not be able to remediate identified material weaknesses in our internal control over financial reporting and disclosure controls and procedures;

● risk that we are not able to meet the requirements of agreements under which we acquired our options to acquire mineral property interests, including any cash payments to on the option or any exploration obligations that we have regarding these properties, which could result in the loss of our right to exercise these options to acquire certain mining and mineral rights underlying these properties;

● the risk that we will be unable to pay our debt obligations as they become due or comply with the covenants contained in agreements with debt holders;

● risk that we will be unable to secure additional financing in the near future in order to commence and sustain our planned exploration work and be forced to cease our exploration and development program;

● risk that we cannot attract, retain and motivate qualified personnel, particularly employees, consultants and contractors for our operations in the United States;

● risks and uncertainties relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits;

● results of initial feasibility, pre-feasibility and feasibility studies, and the possibility that future exploration, development or mining results will not be consistent with our expectations;

● mining and development risks, including risks related to accidents, equipment breakdowns, labor disputes or other unanticipated difficulties with or interruptions in production;

● the potential for delays in exploration or development activities or the completion of feasibility studies;

● risks related to the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses;

● risks related to commodity price fluctuations;

● the uncertainty of profitability based upon our history of losses;

● risks related to failure to obtain adequate financing on a timely basis and on acceptable terms for our planned exploration and development projects;

● risks related to environmental regulation and liability;

● risks that the amounts reserved or allocated for environmental compliance, reclamation, post-closure control measures, monitoring and on-going maintenance may not be sufficient to cover such costs;

● risks related to tax assessments;

● political and regulatory risks associated with mining development and exploration; and

● other risks and uncertainties related to our prospects, properties and business strategy.

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The foregoing list is not an exhaustive list of the factors that may affect any of our forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on our forward-looking statements.

As used in this Quarterly Report, the terms “we,” “us,” “our,” “the Company”, and “First Colombia” mean First Colombia Gold Corp. and our subsidiaries unless otherwise indicated.

Corporate History

We were incorporated in the State of Nevada under the name Gondwana Energy, Ltd. on September 5, 1997, and previously operated under the name Finmetal Mining Ltd. and Amazon Goldsands Ltd. Our operations have historically focused on the acquisition and development of mineral property interests in varying locations, including Finland and Peru. The current focus of our business and operations is on the development of our mineral property interests on properties located in the western United States and we are evaluating mineral property interests and seeking opportunities in other geographical areas, including Colombia and Bolivia, to potentially acquire.

As described in more detail below, we no longer have any interest in any properties located in northeastern Peru. For reasons which include our inability to secure sufficient financing to be able to cure our default on notes we used to finance our acquisition of the property interests in Peru, we reached an agreement to relinquish our entire interest in the property interests in Peru in exchange for the cancellation of such notes and related outstanding obligations.

In 2011, we reviewed potential properties for acquisition in Colombia, and expanded our focus to North America which resulted in our acquiring certain mineral property interests in Montana and Idaho in late 2011. Company personnel and consultants are planning our exploration plans, conducting site visits, and reviewing several projects for potential acquisition, and in 2012 we added to our mineral property position through the acquisition of the Skip claims in Montana. We also in 2011 entered into agreements to acquire mineral property interest in the South Idaho Silver and  Boulder Hill projects, conductive active due diligence and exploration acquisition work in Croatia, and in 2013 signed a memorandum of understanding on the Nile Mine project in Montana.

Exploration Stage Company

We are considered an exploration or exploratory stage company because we are involved in the examination and investigation of land that we believe may contain valuable minerals, for the purpose of discovering the presence of ore, if any, and its extent. There is no assurance that a commercially viable mineral deposit exists on any of the properties underlying our mineral property interests, and a great deal of further exploration will be required before a final evaluation as to the economic and legal feasibility for our future exploration is determined. We have no known reserves of any type of mineral. To date, we have not discovered an economically viable mineral deposit on any of the properties underlying our mineral property interests, and there is no assurance that we will discover one. If we cannot acquire or locate mineral deposits, or if it is not economical to recover any mineral deposits that we do find our business and operations will be materially and adversely affected.

We consider ourselves a project generation company such that using our experience and industry contacts we acquire projects for exploration, development or advancing through joint-venture, or where management determines the better alternative is selling all or an interest in a project, it will consider such a possibility. As such the Company is regularly considering new projects through evaluation of historical records and discussions with industry contacts.

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Description of our Mineral Property Interests

South Idaho Silver Project

On December 7, 2011 (the “Effective Date”), we entered into a Assignment and Assumption Agreement (“Assignment Agreement”) with Castle Creek Silver Inc. (“Castle Creek”), an Idaho corporation, and Robert Ebisch (“Ebisch”). Castle Creek and Ebisch are parties to an Option to Purchase and Royalty Agreement dated July 15, 2011 (the “Option Agreement”), for Castle Creek’s option to acquire an undivided 100% of the right, title and interest of Ebisch in and to the PB 7, 9, 11, 12, 23, 25, 27, and 29 lode mining claims (IMC #’s, respectively, 196852, 196854, 196856, 196857, 196866, 196867, 196868, and 196869), situated in Owyhee County, Idaho, (hereinafter together with any form of successor or substitute mineral tenure called the “South Idaho Silver Project”). Pursuant to the terms of the Assignment Agreement, Castle Creek transferred and assigned us all of its right, title and interest, in, to and under the Option Agreement and we assumed the assignment of the Option Agreement agreeing to be bound, the same extent as Castle Creek, to the terms and conditions of the Option Agreement. As consideration for the Assignment Agreement, we issued Castle Creek 1,000,000 restricted shares of our common stock and are obligated to pay Castle Creek $50,000 in cash within twelve (12) months of the Effective Date, which is December 7, 2012, and Castle Creek will be entitled to a 1% net smelter return (“NSR”) from any ore produced from the South Idaho Silver Project. At any time from the Effective Date, we have the right to acquire the 1% NSR payable to Castle Creek for $250,000.The Assignment Agreement includes customary representations and warranties. Under the terms of the Assignment Agreement, Castle Creek and Ebisch have agreed to indemnify us from claims resulting from any breach or inaccuracy of any representation or warranty made by Castle Creek or Ebisch in the Assignment Agreement and for any breaches of any representations, warranties, obligations, terms or covenants of either Castle Creek or Ebisch under or pursuant to the Option Agreement.

The Option Agreement and assignment of Castle Creek’s right, title and interest, in, to and under the Option Agreement provide that we will have exercised the option to acquire an undivided 100% of Ebisch’s right, title and interest in and to the South Idaho Silver Project after incurring an aggregate of $210,000 in exploration expenditures, paying Ebisch an aggregate of $80,000 plus five per cent (5%) of any joint-venture and buyout payments (hereafter referred to as “JV&BP”) and paying filing fees over the term of the Option Agreement. The Option Agreement provides that the cash payments payable to Ebisch shall be made according to the following schedule:

● $2,500 on or before January 31, 2012 plus five per cent (5%) of any JV&BP; ( this payment has been made)

● $2,500 on or before September 15, 2012 (extended to June 20,2013 and paid) plus five per cent (5%) of any JV&BP;extended until June 20,2013and  paid

● $5,000 on or before September 15, 2013  plus five per cent (5%) of any JV&BP; (unpaid)

● $10,000 on or before September 15, 2014  plus five per cent (5%) of any JV&BP;

● $15,000 on or before September 15, 2015  plus five per cent (5%) of any JV&BP;

● $20,000 on or before September 15, 2016  plus five per cent (5%) of any JV&BP; and

● $25,000 on or before September 15, 2017  plus five per cent (5%) of any JV&BP.

We have received a waiver from the property owner for September 15, 2012 payments and work commitments, and a waiver through 2013 for all property payments and work commitments.

The Castle Creek Option Agreement provides that the exploration expenditures of an aggregate of not less than $210,000 on the South Idaho Silver Project shall be incurred as follows:

· on or before April 15, 2012, incur not less than an aggregate of $10,000 in exploration expenditures; (these expenditures have been made)

· on or before September 15, 2012, incur not less than an aggregate of $20,000 in exploration expenditures (which have been incurred).

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· on or before September 15, 2013, incur not less than an aggregate of $100,000 in exploration expenditures; and (not incurred)

· on or before September 15, 2014, incur not less than an aggregate of $210,000 in exploration expenditures.

In addition to the foregoing cash payments, exploration expenditures and filing fees, in order to maintain our interest in the South Idaho Silver Project, we will be responsible for the following:

● make advance royalty payments to Ebisch, commencing on September 15, 2015 and continuing on the 15th day of September each and every year thereafter for so long as we or our assigns retains an interest in the South Idaho Silver Project, of $25,000 per year; and

● incur a minimum of $100,000 of annual exploration expenditures on the South Idaho Silver Project on or before the 15th day of September each and every year after September 15, 2015, which could be offset by exploration expenditures in excess of $100,000 in any prior annual period.

The Company as of September 30,2013 is evaluating whether to proceed under the current arrangements due to financing challenges, or re-negotiate the terms, and has begun discussion with CCS to modify the existing agreement. CCS has agreed subsequent to that date of  a negotiation of terms in good faith prior to the end of 2013, which will include consideration to CCS of not more than $15,000 to modify the existing agreements.

Property Description and Location

The general location of the South Idaho Silver Project is identified on the map below:

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Location, Area, and Type of Mineral Tenure

The South Idaho Silver Project lies about 80 km south of Boise, Idaho on the flanks of the Snake River Plain, a vast graben-like physiographic region. The South Idaho Silver Project lies in Sections 14 and 15, Township 6 South, Range 1 West, Boise Meridian, Owyhee County, Idaho. Mineral rights are held by eight federal unpatented lode mining clams. These cover approximately 160 acres (65 hectares).

PROPERTY CORNER COORDINATES- UTM NAD 27 CONUS

NORTHING	EASTING
4750115	545650
4750115	546100
4749755	546100
4749755	547000
4749215	547000
4749215	546550
4749125	546550
4749125	546370
4749575	546370
4749575	545650

The eight unpatented mining claims are numbered PB 7 (IMC # 196852), PB 9 (IMC # 196854), PB 11 (IMC # 196856), PB 12 (IMC # 196857), PB 23 (IMC # 196866), PB 25 (IMC # 196867), PB 27 (IMC # 196868), and PB 29 (IMC # 196869).

Our ability to explore and mine the South Idaho Silver Project depends on the validity of title to the South Idaho Silver Project. The South Idaho Silver Project consists of unpatented mining claims. Maintenance of rights to unpatented mining claims contain certain requirements including sufficiency of mineral discovery, proper posting and marking of boundaries, failure to meet statutory guidelines, assessment work and possible conflicts with other claims. We have not obtained a title opinion nor title insurance on the underlying unpatented claims at this exploration stage.

Accessibility, Climate, Local resources, Infrastructure, Physiography

Topography, Elevation, and Vegetation

The South Idaho Silver Project is a steeply-incised drainage that drops about two hundred meters from the peneplain that lies to the immediate north. The elevation of the South Idaho Silver Project is about 1200 meters above mean sea level. Vegetation consists primarily of sagebrush and short grasses.

Accessibility

The South Idaho Silver Project is readily accessible from Nampa, Idaho, which lies on Federal Interstate Highway 84. Nampa is the nearest large town that has services necessary for mineral exploration and mining. From Nampa, paved State Highway 78 is followed about 70 km to the south to the Oreana turnoff. From there, about 5 km of paved road and 10 km of dirt road lead to the property. Unimproved tracks provide access to the claim group. Road access to the south side of the South Idaho Silver Project is limited. Mechanized work there may require construction of a temporary creek crossing, although one unimproved road crosses the South Idaho Silver Project at a ford.

Climate

The climate is semi-arid with roughly 150 mm/year precipitation. Summer temperatures may rise to 40 degrees centigrade while winter temperatures may fall to as low as -10 degrees centigrade. The South Idaho Silver Project is commonly subject to strong winds. The South Idaho Silver Project can be accessed year-round because of the mild climate, good road access, and low elevation of about 1,200 meters above mean sea level.

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Water Rights, Power, and Mining Personnel

The status of water rights at the South Idaho Silver Project is uncertain. The amount of water in the vicinity of the South Idaho Silver Project is adequate for exploratory drilling, but probably not for mineral processing. The nearest power lines are about 10 km distant. Mining personnel are not available locally.

The most important natural feature on the South Idaho Silver Project is a perennial stream called castle creek. During the summer, it has estimated that it flows at a minimum rate of several hundred gallons per minute. A temporary water withdrawal permit from the State of Idaho would be required for drill water. If such a permit would be granted, water might be pumped to any drill site, with a substantial cost savings on water truck rental and driver wages. There is no assurance such a permit would be granted, and if granted requirements to such a permit would be cost-effective.

Tailings Storage Areas, Waste Disposal Areas, and Plant Sites

We have not identified private land adjacent to the South Idaho Silver Project or within close proximity that could be used for potential storage areas, waste disposal or processing sites. There is public land in the vicinity, but it is unknown whether permits would be granted for such uses.

Previous Exploration History

There is no verifiable information that the South Idaho Silver Project was a producing property in the past. Prior site visits indicate that up to one hundred meters of historic underground workings exist on the South Idaho Silver Project. These may have been completed approximately 100 years ago. It is unknown the state of repair of these workings and the extent of accessibility. No mineralized material or reserves have been identified or quantified on the South Idaho Silver Project. No known production has come from the South Idaho Silver Project.

In 2008, two private individuals located various mining claims in the area including those described herein and leased to a private exploration company, Castle Creek, which retained a professional geologist whose site visits and data review are the primary source of the historical information described herein.

Geological Setting and Local Geology

The South Idaho Silver Project lies upon the margins of the Snake River Plain, a vast graben-like, Cenozoic Age structure that covers a large part of southern Idaho. Regionally, several mineral districts lie along the margin of the Snake River Plain.

The geology consists primarily of a Late Cretaceous Age granodiorite which hosts veins and breccia bodies that contain gold, silver, lead, zinc, copper sulfide mineralization. The granodiorite and breccias are covered locally by Tertiary Age, post-mineral basalts. The breccia bodies are the primary target on the South Idaho Silver Project. What are believed to be high-grade veins are of secondary interest.

Property Geology

Granite is widespread and covered locally by post-mineral basalts. Faulting consists primarily of extensional block-faulting. The granite commonly contains large xenoliths of schist. Locally, the granite has undergone argillic and silicic alteration. Veins and breccias of interest on the Property are granite-hosted. A detailed geologic map has not yet been completed on the South Idaho Silver Project.

Potential Deposit Type

Two potential deposit types are of interest at the South Idaho Silver Project. The first of these is the hydrothermal breccias that are found in several areas. The extent of this type of mineralization is uncertain. The second potential deposit type is high-grade quartz/sulfide veins that may be genetically associated to the breccias. An exploration program has been planned to identify steeply-dipping pipe-like bodies of quartz/sulfide mineralization. Both types of mineralization are probably of epithermal origin. Little data on the potential deposit types is available because the South Idaho Silver Project is in such an early stage of contemporary exploration.

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Mineralization

Rock samples taken primarily from a sulfide-rich, siliceous hydrothermal breccia and associated rocks on the south side of the Property in 2008 by the prior owner give indication of the presence of gold and silver mineralization within a hydrothermal breccia. The breccia is hosted by altered granodiorite. The breccia contains locally massive pyrite, galena, sphalerite, arsenopyrite, chalcopyrite within a siliceous, sulfide-bearing matrix. Clasts within the breccia consist of dark grey rhyolite with semi-massive sulfides, massive pyrite with base metal sulfides and massive arsenopyrite, and light-grey quartz. Besides gold and silver, the mineralization contains anomalous arsenic, copper, lead, and zinc mineralization.

The geologic controls on this breccia mineralization is uncertain. The breccia lies in the vicinity of the intersection of two topographic lineaments which control the orientation of the Property. The length, width, depth, and continuity of both the breccia mineralization and sporadic vein mineralization is uncertain.

Metallurgical

No metallurgical testing has been conducted.

Reserves

There are no established probable or proven reserves on the South Idaho Silver Project.

Exploration

Only a limited amount of work has been completed on the South Idaho Silver Project. This work has been confined primarily to rock sampling at historic prospects. The rock samples taken were grab samples indicating mineralization that are not representative of any specific length or width of mineralization. They do not reflect the average grade of mineralization on any of the mineralized zones sampled. The rock sampling completed thus far has shown primarily that mineralization of interest is found in several areas of the South Idaho Silver Project. The geologic and geochemical surveys completed on the South Idaho Silver Project have been done a professional geologist.

We are not aware of any drilling that has been completed on the South Idaho Silver Project.

Exploration Plan

Our primary exploration plan in this under-explored area is to discover and focus on areas of known Au (Gold)/Ag (Silver) breccias mineralization; emphasizing exploration near the approximate intersection of northerly and easterly-trending topographic linears.

The above strategies would greatly limit the areas to be investigated by geophysics and possible subsequent drilling, which is anticipated to result in cost savings. However, all prospects in the area should have at least a cursory examination.

Comprehensive underground mapping and sampling of accessible historic mine workings is recommended. This will help determine the extent and average grade of mineralization on the property. Geophysics may also be necessary to enhance target definition. An IP/Resistivity survey is recommended to delineate sub-surface sulfide mineral distribution. Gold/Silver mineralization found thus far often correlates positively with sulfide content.

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On the eight-claim South Idaho Silver Project, several areas of structural intersections should be evaluated using electrical geophysical methods. These should be followed-up by drilling to test for any depth extension of the mineralization. An itemized budget for this work is shown below:

	Proposed Budget
Geologist	$	45,000
Geotech	$	20,000
Geophysics	$	25,000
Field Expenses	$	10,000
Lease Payments	$	25,000
Bond	$	10,000
Site Prep/Reclamation	$	10,000
Water Truck	$	18,000
Assays	$	25,000
Drilling (1,200 meters @ $135/meter)	$	162,000
Total	$	350,000

This work plan may be accomplished in a two-phase plan with the initial budget of $210,000 required meet work requirements required in the Option Agreement, for the period from 2012 to 2014.

In the quarter ended September 30, 2013 we continued our review of historical data and planning its 2013 exploration work. This work  commenced with planning additional staking of unpatented mining claims, review with geologists the work program, and review of the proposed budget against current estimates. Field work in the second quarter was partially delayed to reconnaissance exploration work (see “Montana” below) in Montana during the quarter. The review of our exploration plan has resulted in management’s decision to proceed over the winter months in preparing a preliminary plan of operation to be finalized when weather permits additional site reconnaissance on the property, during which initial surface sampling is planned to be implemented.

Our current cash on hand is insufficient to complete any of the planned exploration activities and the full implementation of any planned exploration program is dependent on our ability to secure sufficient financing. We can provide no assurance that we will secure sufficient financing. In the absence of such financing, we will not be able to pursue our planned exploration program and may not be able to maintain the option to acquire the South Idaho Silver Project or underlying mining claims in good standing. If we do not fulfill the terms of the Assignment Agreement or Option Agreement, then our ability to commence or continue operations could be materially limited. We also may be forced to abandon the South Idaho Silver Project. If we are unable to raise additional capital within the next twelve months, we will experience liquidity problems and management expects that we will need to curtail operations, liquidate assets, seek additional capital on less favorable terms and/or pursue other remedial measures. We may consider entering into a joint venture arrangement to provide the required funding to explore the South Idaho Silver Project. We have not undertaken efforts to locate a joint venture participant and there is no assurance that any third party would enter into a joint venture agreement with us in order to fund exploration of the South Idaho Silver Project. If we were to enter into a joint venture arrangement, we would likely have to assign a percentage of our interest in South Idaho Silver Project to the joint venture participant. We have begun the process of reviewing the data base of information we have acquired on the project, and a preliminary review of requirements to begin implementation of the proposed exploration plan. Company personnel are reviewing requirements for the Plan of Operation (POS) that will need to be filed prior to certain exploration activities. We are actively discussing with CSS a modification of the existing agreement, which may result in seeking outling unpatented mining claims ofmerit using our existing database and budget as a guideline for exploration.

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Boulder Hill Project

Purchase and Sale Agreement of Unpatented Mining Claims

On December 16, 2011, we entered into a Purchase and Sale Agreement (“Purchase Agreement”) with Boulder Hill Mines Inc., an Idaho corporation (“Boulder Hill”) relating to the purchase from Boulder Hill of three unpatented mining claims situated in Lincoln County, Montana (the “Claims”). As consideration for the Claims, we issued Boulder Hill 500,000 restricted shares of our common stock, are obligated to pay Boulder Hill $25,000 in cash within twelve (12) months of the Effective Date, which is December 16, 2012, and $25,000 in cash within twenty-four (24) months of the Effective Date, which is December 16, 2013. Boulder Hill sold, transferred and conveyed the Claims by executing and delivering quitclaim deeds to us.

The Purchase Agreement includes customary representations and warranties. Under the terms of the Purchase Agreement, Boulder Hill has agreed to indemnify us from claims resulting from any breach or inaccuracy of any representation or warranty made by Boulder Hill in the Purchase Agreement.

Assignment and Assumption of Lease Agreement

On December 16, 2011 (the “Effective Date”), we entered into an Assignment and Assumption Agreement (“Assignment Agreement”) with Boulder Hill, and Jim Ebisch (“Ebisch”). Boulder Hill and Ebisch are parties to an Option to Purchase and Royalty Agreement dated July 15, 2008, as amended on August 1, 2011 (the “Option Agreement”) which granted to Boulder Hill an option to acquire an undivided 100% of the right, title and interest of Ebisch in and to that certain Montana State Metallferrous Gold Lease M-1974-06 dated August 21,2006 he entered into with the State of Montana (the “Montana Gold Lease”) under which Ebisch was granted the exclusive right to prospect, explore, develop and mine for gold, silver and other minerals on property situated in Lincoln County, Montana. The Montana Gold Lease is for a ten (10) year term and is subject to the 5% net smelter return due to the State of Montana. Pursuant to the terms of the Assignment Agreement, Boulder Hill transferred and assigned us all of its right, title and interest, in, to and under the Option Agreement and we assumed the assignment of the Option Agreement agreeing to be bound, the same extent as Boulder Hill, to the terms and conditions of the Option Agreement. As consideration for the Assignment Agreement, we issued Boulder Hill 500,000 restricted shares of our common stock and are obligated to pay Boulder Hill $25,000 in cash within twelve (12) months of the Effective Date, which is December 16, 2012, and $25,000 in cash within twenty-four (24) months of the Effective Date, which is December 16, 2013.

Under the terms of the Assignment Agreement, Boulder Hill and Ebisch have agreed to indemnify us from claims resulting from any breach or inaccuracy of any representation or warranty made by Boulder Hill or Ebisch in the Assignment Agreement and for any breaches of any representations, warranties, obligations, terms or covenants of either Boulder Hill or Ebisch under or pursuant to the Option Agreement.

The Option Agreement and assignment of Boulder Hill’s right, title and interest, in, to and under the Option Agreement provide that we will have exercised the option to acquire an undivided 100% of Ebisch’s right, title and interest in and to the Montana Gold Lease after incurring an aggregate of $210,000 in exploration expenditures, paying Ebisch an aggregate of $80,000 plus five per cent (5%) of any joint-venture and buyout payments (hereafter referred to as ”JV&BP”) and paying filing fees over the term of the Option Agreement. Our responsibility for the foregoing exploration expenditures and cash payments is inclusive of exploration expenditures incurred by Boulder Hill to the present and payments previously made by Boulder Hill to Ebisch under the terms of the Option Agreement.

The Option Agreement provides that the cash payments payable to Ebisch shall be made according to the following schedule:

· $20,000 on or before October 14, 2012 plus five per cent (5%)of any JV & BP (of which an initial payment of $3,000 has been made)

· $15,000 on or before July 15, 2013 plus five per cent (5%) of any JV&BP;extended to September 14,2013 (payment not made)

· $20,000 on or before July 15, 2014 plus five per cent (5%) of any JV&BP; and

· $25,000 on or before July 15, 2015 plus five per cent (5%) of any JV&BP.  

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We have received a waiver on the October 14, 2012 payments and 2012 work commitments,waived through September 30,2013.

The Option Agreement provides that the exploration expenditures of an aggregate of not less than $210,000 on the property underlying the Montana Gold Lease shall be incurred as follows:

· on or before December 16, 2012, incur not less than an aggregate of $49,000 in exploration expenditures; and,extended until September 30,2013.

· on or before December 13, 2013, incur not less than an aggregate of $210,000 in exploration expenditures.

In addition to the foregoing cash payments and exploration expenditures, we will be responsible for paying filing fees over the term of the Option Agreement and the following in order to maintain Ebisch’s interest in the Montana Gold Lease:

· Make advance royalty payments to Ebisch of $25,000 per year commencing on July 15, 2015 and continuing on the 15th day of July each and every year thereafter for so long as the Company in the Montana Gold Lease, an

  ● The Company elected to not proceed with the Ebusch portion of the property and the agreement lapsed upon the payments referred to above on extenson to September 15,2013 and September 30,2013 respectively not being made.

Description of Boulder Hill Project

In connection with our consideration of entering into the foregoing agreements, we conducted a diligence review. The Claims and the property that is subject to the Montana Gold Lease is being referred to by us as the “Boulder Hill Project.” The description of the property underlying the Boulder Hill Project that is contained herein is the product of the Company’s due diligence review.

Location The general location of the Boulder Hill is on the map below:

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The Boulder Hill Project consists of approximately 60 acres comprised of three unpatented mining claims (the “Claims”) and an option to acquire certain rights under a contiguous lease with the State of Montana (Montana State metal ferrous Gold Lease M-1974-06, the “Montana Gold Lease”) of approximately 114 acres located in Lincoln County, Montana. The property underlying the Claims and Montana Gold Lease lie in Township 29 North, Range 27 West, Montana Principal Meridian.

Land Status

Mineral rights on federal unpatented lode mining claims can be held indefinitely as long as the annual claim maintenance payments are current. At the present time, all of the required annual claim maintenance payments for the Claims have been made. The initial term on the Montana Gold Lease is for a ten-year period commencing on August 21, 2006, which may be renewable. The total area consisting of the Boulder Hill Project consists of approximately 174 acres. The total annual property maintenance costs due the state and federal government for the Boulder Hill Project is currently about $800/year.

History

The Boulder Hill Project contains several historic prospect pits and adits, which we believe were excavated in the late 19th century or early 20th century. Bright white quartz veins with low gold contents attracted early prospectors to the Boulder Hill Project area. In 1995 during a regional reconnaissance conducted by Jim Ebisch, these original mine workings were sampled. Quartz vein samples from these historic workings were found in 1995 to contain low-grade gold; however, one prospect pit further down the hill, also originally sampled at the same time, contained altered, siliceous metasediments that have a far different appearance than that of the bright white quartz veins. These metasediments, poorly exposed in the prospect pit, were found to contain gold grades much higher than that of the bright white quartz veins that attracted historic attention. We have not independently verified this information and can provide no assurance that any of our exploration work will result in similar results.

Regional Geology

The Boulder Hill Project is located within an area that includes the Belt Basin of the northwestern United States. Mineralization is hosted by the Precambrian Age Prichard Formation. The Boulder Hill Project lies near the crest of the Wolf Creek Anticline. The rocks exposed in that area are thought to belong to the G Member of the Prichard Formation. The Boulder Hill Project also lies immediately south of the Wolf Creek Fault, an important regional structure.

Boulder Hill Project Geology

Structurally the Boulder Hill Project is on the downthrown side of the Wolf Creek fault, and the project is considered by us as a stratiform sulfide target within the Middle Prichard Formation in Lincoln County, Montana.

Our exploration plan at the Boulder Hill Project is designed to target what are believed to be Stratabound gold occurrences. Poorly-exposed gold mineralization found during the aforementioned reconnaissance exploration at the Boulder Hill Project within a prospect trench in 1995 is in contrast to the bright white quartz veins that were of historic interest. The rocks containing the gold mineralization found in 1995 consisted of silicified, sericitized and pyritic to locally gossanous metasediments. We have not independently verified this historical information and can provide no assurance that any of our exploration work will result in similar results.

Project Infrastructure, Access and Power

The Boulder Hill Project is located in an area of low-lying hills, away from residential areas. A paved road, a power line, and a railway line passes within one mile of the subject area. An improved gravel road passes by northwestern portion of the property. Skid trails lead to the area where the gold mineralization was found during the 1995 exploration and a subsequent follow-up site visit in 2008 by Mr. Ebisch. There are no accessible tunnels or shafts on the subject area. The source of water for proposed drilling is currently uncertain, which may require initial hauling of water for drilling purposes.

Reserves

There are no established probable or proven reserves on the property underlying the Boulder Hill Project. Our due diligence activities have been limited, and to a great extent, have relied upon information provided to us by third parties. We have not established and cannot provide any assurance that any of the properties underlying the Boulder Hill Project contain adequate, if any, amounts of gold or other mineral reserves to make mining economically feasible to recover that gold, or other mineral reserves, or to make a profit in doing so.

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Proposed Exploration Plan

Several phases of exploration work will be necessary to move forward this project. Each successive phase of work is contingent upon the results of previous phases. The first phase will require geological mapping and sampling. Concurrent with this work, excavation of trenches on the underlying property will be necessary to expose and sample mineralization of interest. Geophysics may also be done on the property if the mineralization found by trenching has characteristics that lend to detection by geophysical methods. The total cost of this work is estimated to be $49,500.

The second phase of work will involve limited drilling, consisting of 3-5 diamond drill holes. These will test for near-surface strata bound gold. The total cost of this work is estimated to be $214,500.

The third phase of work will involve the drilling of one-two deep drill holes, each with an estimated depth of 1,500 feet. These will test for deep strata bound gold close to the Wolf Creek Fault. The total cost of this work is estimated to be $338,000.

Our current cash on hand is insufficient to complete any of the activities set forth in our planned exploration program. We have postponed the commencement of exploration drilling and development program until such time that we are able to secure sufficient financing. We can provide no assurance that we will be successful in securing sufficient financing. Provided we are able to secure sufficient financing, we anticipate that we will incur the following costs for the next twelve months:

Proposed Exploration Budget

Stage 1 (Trenching and Geophysics)

Permitting and Bonding	$	6,500
Trench rehabilitation, new trenching, surveying and sampling	$	9,500
Supervision, geologic mapping and reporting	$	10,000
Analyses (100 samples @ $40 each)	$	4,000
Geophysics & Reclamation	$	15,000
Administration & overhead @ 10%	$	4,500
Subtotal	$	49,500

Stage 2 (Shallow Drilling)

Permitting and Bonding	$	10,000
Surface diamond drilling 3-5 holes @ 400 ft depth average @ $70/ft	$	140,000
Site Preparation & Reclamation	$	10,000
Supervision, core logging, sampling and reporting	$	25,000
Analyses (100 samples @ $50 each)	$	5,000
Core Handling/Storage	$	5,000
Administration & overhead @ 10%	$	19,500
Subtotal	$	214,500

Stage 3 (Deep Drilling)

Permitting and Bonding	$	5,000
Surface diamond drilling 2 holes @ 1,500 feet each @$90/foot	$	270,000
Site Preparation & Reclamation	$	3,000
Supervision, core logging, sampling, and reporting	$	20,000
Analyses (100 samples @$50/each)	$	5,000
Core Handling/Storage	$	5,000
Administration & overhead @ 10%	$	30,800
Subtotal	$	338,800
Grand Total of all 3 Steps	$	602,800

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This exploration plan may change or be terminated depending on the results from each stage of exploration.

The Company is reviewing the initial project information to update for implementation by reviewing estimates and determining scheduling requirements for staff, and subject to financing, and weather to date has precluded ability to schedule planned personnel for initial stages described above. The Company is reviewing its data base of information on the project to determine the proper timing, vendor selection and consideration of adjacent ground that may be acquired to enhance territory that can be explored as part of the project, and determining outside geological assistance that may be required. We have reviewed permitting and bonding requirements with our professional geologist.

We have elected to concentrate on the owned claims, and have informed Boulder Hill Mines,Inc. that we do not seek to proceed under the current agreement but instead wish to re-negotiate going forward.

Montana

During the quarter, the Company conducted reconnaissance exploration in Jefferson County, Montana. This included reviewing historical data, and field site visits to areas of interest. These efforts are designed initially from surface examination to identify properties with geological characteristics that indicate further exploration and potential acquisition may be warranted.

We have acquired the Skip claims in Montana through right of location. The Skip project is considered an early-stage silver exploration project, and we are seeking either a JV partner, or to develop an exploration plan for 2013. The project has no indicated reserves.

Memorandum of Understanding to Earn-Interest in the Nile Mine Project

On May 1, 2013, the Company with GMRV, a branch of 4uX, LLC, a private Montana company (“GMRV”) entered into a Memorandum of Understanding (“MOU”) to enter into a Definitive Agreement within 180 days for the Company to earn a fifty percent interest in the Nile Mine project. The Company has not entered into a final and definitive agreement at this time.

Land Status

The project is owned/controlled by GMRV and private interests. The Company signed a Memorandum of Understanding (“MOU”) on the project effective May 1, 2013 containing the following terms and conditions for the Company to earn a 50% interest in the project:

Paying within 180 days of the signing of this MOU $2,500 which will be payable in cash or the issuance of restricted shares of the Company at the market bid price, or the equivalent in restricted preferred shares of the Company, subject to an subscription agreement signed by GMRV acceptable to the Company. The Company has agreed to an initial work commitment of $5,000 in 2013, and upon mutual agreement of an exploration plan for 2014, an increased work commitment of at least $10,000 for 2014.

The Company agreed that work commitment will include the consulting services that will be provided by GMRV. The parties in good faith agree to enter into a definitive agreement with duration of 10 years, with a work commitment for this period of $250,000 and annual minimum advance royalty payments of $5,000 per year in cash, common shares, or preferred shares, at First Colombia’s option, for First Colombia to earn a 50% interest in the project. Should a mutually agreed upon definitive agreement not be agreed on and implemented within the effective date of this agreement, the payment referred to above shall be non-refundable.

On the effective Date: May 1, 2013, The Company was responsible for all property maintenance fees, estimated not to exceed $500.00 annually at the current BLM Maintenance Fee rate.

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The foregoing description of the MOU does not purport to be complete and is qualified in its entirety by reference to the MOU, which is filed as Exhibit 10.1 to this Current Report on Form 8-K and is incorporated herein by reference.

Description of Property

Location

The project is located in Marysville Mining District in the Marysville area, and is comprised of the Nile Mine and nearby Springer II Placer mining claim, comprising approximately fifty-five acres.

The Nile Mine Project consists of two unpatented lode claims covering the over 1,000 feet of the unpatented section of Nile and South Nile Veins and the Nile Cross-Cut located in Section 4, T11N, R6W.

The Springer_II Placer consists of one unpatented placer claim covering three tailing ponds and nearly 0.3 miles of old dredge piles in Section 32, T12N, R6W. The mill tailings are from the Empire Mill located further up the drainage.

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History

The placer property contains evidence of production from a former gold-silver mill. Prior sampling identified about 13,000 cubic yards of mill tailings containing gold, silver, and copper values. The Company has not verified prior sampling results. The lead-silver-gold mine reported intermittent production from 1890's through 1940's.

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Regional Geology

The Company is currently reviewing regional and project geology.

Project Infrastructure, Access and Power

There is evidence and historical information that indicates some level of production from the Nile Mine but the Company hasn’t completed a thorough review of this data.

Reserves

There are no established reserves on the project.

Permitting

In Montana an Exploration License or POO (Plan of Operation) may be required depending on the extent of planned surface disturbance or water discharge form exploration and development activities, and such permits can typically require bonding.

Skip Claims

Land Status

The Skip unpatented mining claims comprise approximately forty acres and are considered a potential silver prospect.

Reserves

There are no established reserves on the property.

Exploration History

The Company has no documented information on prior exploration history. The Company has noticed evidence of trenching on the property.

Exploration Plans

The Company’s next step would be to prepare basic mapping, geologic mapping and taking surface samples. The Company believes that seeking a joint-venture partner would be the preferable approach to advancing the project.

Whatcom Uranium Claims

Land Status

The Company staked two unpatented mining claims in Washington state comprising approximately forty acres, with cost incurred of filing fees and outside geological consulting time related to the acquisition.

Reserves

There are no established reserves on the property.

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Exploration History

The Company has no documented exploration history ion the property which formerly was owned by Utah-Idaho Consolidated Uranium,Inc.

Exploration Plans

The Company is evaluating costs and timing of conducting a survey using a spectrometer as an initial step to guide further exploration plans or holding of the property.

Other Exploration Areas

Our strategy is to advance projects we own, lease or option, and seek joint-venture partners where possible, and to acquire additional projects in different geographical areas though our concentration currently is in Montana and Idaho. We currently have two geologists performing work for the Company in database construction and review considering potential projects for the Company. There is no assurance this will result in additional projects for the Company, or if they do the Company will meet regulatory and financial requirements to acquire any projects identified.

The Peru Property and Settlement and Mutual Release Agreement

We entered into a Mineral Right Option Agreement with Temasek on September 18, 2008, as amended and supplemented by Amendment No. 1 dated May 12, 2009 (“Amendment No. 1”), Amendment No. 2 dated February 3, 2010 (“Amendment No. 2”), and Amendment No. 3 dated June 25, 2010 (“Amendment No. 3”) (collectively, the “Option Agreement”). Pursuant to the Option Agreement, we acquired from Temasek a fifty percent equity interest in Beardmore Holdings, Inc. (“Beardmore”) and had the option to acquire the remaining fifty percent equity interest in Beardmore from Temasek, which would have resulted in our ownership of one hundred percent of Beardmore’s equity. Beardmore indirectly holds, through its subsidiary Rio Santiago Minerales S.A.C., certain mineral rights (the “Mineral Rights”) underlying properties located in Peru.

Under the terms of Amendment No. 3, we would have increased our ownership interest in the Mineral Rights from fifty percent to one-hundred percent resulting in our acquisition of all of the outstanding capital stock of Beardmore, if we had fulfilled the following conditions (collectively the “Option Requirements”) within ten business days following the effective date of Amendment No. 3:

· Completion of the exercise of options resulting in our acquisition of a fifty percent interest in the Mineral Rights through our acquisition of fifty percent of the outstanding capital stock of Beardmore;

· Issuance to Temasek of a total of 11,000,000 shares of our common stock (of which 5,000,000 shares were previously issued to Temasek);

· Payment to Temasek of US $250,000 (which such payment was acknowledged by Temasek to have been made in March 2010);

· Issuance of a convertible note for US $250,000 (the “$250,000 Convertible Note”) payable to the order and the direction of Temasek (which was issued on June 25, 2010); and

· Issuance of a convertible note for US $3,250,000 (the “$3,250,000 Convertible Note” and, collectively with the $250,000 Convertible Note, the “Convertible Notes”) payable to the order and the direction of Temasek (which was issued on June 25, 2010).

The $250,000 Convertible Note had a term of ninety days and accrued interest at a rate of 12% per annum. We failed to pay the principle and interest under the $250,000 Convertible Note upon maturity, which caused us to default on the $250,000 Convertible Note.

The $3,250,000 Convertible Note had a term of three years and accrued interest at a rate of 12% per annum. Interest was payable annually and the principal was to be paid upon maturity.

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As of the date we were required to fulfill the Option Requirements under Amendment No. 3, we did not issue the 6,000,000 shares of our common stock to Temasek and defaulted on the $250,000 Convertible Note resulting from our failure to pay the principal plus interest on such note on its maturity date. This also resulted in the options to acquire the remaining fifty percent interest in the Mineral Rights (which would have resulted in the our acquisition of a one hundred percent interest in the Mineral Rights) having lapsed as of July 5, 2010.

On September 21, 2011, we entered into a Settlement and Mutual Release Agreement (“Settlement Agreement”) with Temasek, which resulted in our relinquishment and transfer to Temasek of our fifty percent interest in the outstanding capital stock of Beardmore in exchange for Temasek releasing us from all of our outstanding obligations under the terms of the Option Agreement. By execution of the Settlement Agreement, we no longer held any interest, directly or indirectly, in the Mineral Rights.

Under the terms of the Settlement Agreement, the $250,000 Convertible Note and the $3,250,000 Convertible Note were cancelled and we are no longer obligated to issue Temasek 6,000,000 shares of our common stock in exchange for our relinquishment and transfer to Temasek of our fifty percent interest in the outstanding capital stock of Beardmore. We are not entitled to recover any consideration previously paid to Temasek or any mineral property exploration expenditures incurred in connection with the exploration and development of the properties underlying the Mineral Rights. The Settlement Agreement included a mutual release of all claims arising out of or relating to the Option Agreement.

Other Geographic Locations

We are also considering further geographic locations for exploration projects including Mexico and Europe. This activity consists primarily of reviewing historical data to determine potential areas of interest, to be followed by a determination for requirements and potential for acquiring mineral property interest. We have not identified to date any particular properties that it may be interested in acquiring, but due to the experience of management in certain areas it is considering Zacatecas, Mexico and the Balkans as territories of current and future interest. These activities may not lead to future acquisitions absent future financing under terms deemed acceptable to, if any such financing is available, and determining properties that management believes are properties of merit to add to our portfolio of mineral interests.

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Glossary of Mining terms

Please find attached certain mining terms that may not be familiar.

Glossary of Certain Mining Terms

Andesite	A gray, fine-grained volcanic rock, chiefly plagioclase and feldspar
Argentite	A valuable silver ore, Ag2S, with a lead-gray color and metallic luster that is often tarnished a dull black
Arsenic	A very poisonous metallic element that has three allotropic forms
Arsenopyrite	A silvery-gray mineral consisting of an arsenide and sulfide of iron
Basalt	An extrusive volcanic rock composed primarily of plagioclase, pyroxene and some olivine
brecciated tuffs	Rocks in which angular fragments are surrounded by a mass of fine grained minerals
Chalcopyrite	A sulphide mineral of copper and iron the most important ore mineral of copper
Cretaceous	Geologic period and system from circa 145.5 ± 4 to 65.5 ± 0.3 million years ago
Diorite	An intrusive igneous rock composed chiefly of sodic plagioclase, hornblende, biotite or pyroxene
Electrum	An alloy of silver and gold
Eocene	the second epoch of the Tertiary Period
Epithermal	Pertaining to mineral veins and ore deposits formed from warm waters at shallow depth
Fault	A break in the Earth’s crust caused by tectonic forces which have moved the rock on one side with respect to the other.
Galena	Lead sulphide, the most common ore mineral of lead
Granodiorite	a phaneritic igneous rock with greater than 20% quartz
Hornfels	A fine-grained metamorphic rock composed of quartz, feldspar, mica, and other minerals
Humus	organic component of soil, formed by the decomposition of leaves and other plant material by soil microorganisms
Igneous	Formed by the solidification
kaolin-chlorite	A fine soft white clay, used for making porcelain and china, as a filler in paper and textiles, and in medicinal absorbents
metamorphism	The process by which the form and structure of rocks is changed by heat and pressure
Miocene	the fourth epoch of the Tertiary period.
montmorillonite	An aluminum-rich clay mineral of the smectite group, containing sodium and magnesium
paragenesis	A set of minerals that were formed together, esp. in a rock, or with a specified mineral
Piedrancha	A faultline in Colombia

Reserves	That part of a mineral deposit which could be economically and legally extracted or produced at the time of the reserve determination
sericite	a fine grained mica, either muscovite, illite, or paragonite
shale	Sedimentary rock formed by the consolidation of mud or silt
sphalerite	A zinc sulphide metal; the most common ore mineral of zinc
Tertiary	Stones deposited during the Tertiary period lasting from about 65 million to 1.6 million years ago
zinc	a silvery-white metal that is a constituent of brass and is used for coating (galvanizing)

Mine safety issues.: As we have no operating mines or mines under development at present we have no disclosures related to mine safety issues.

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Results of Operations for the Three Months Ended September 30, 2013 and 2012

Revenues

We have not generated any revenues from our operations since our inception and we do not expect to generate revenues in the near future, due to the exploratory nature of operations at this time.

Operating Expenses

We reported operating expenses in the amount of $118,273 for the three months ended September 30, 2013, compared to operating expenses of $69,168 for the three months ended September 30, 2012. The increase in operating expenses for the three months ended September  30, 2013, as compared to the three months ended September 30, 2012, was primarily a result of an increase in bank and interest charges, and consulting and management fees, shareholder communication. The increase in consulting fees occurred primarily as the Company is conducting more operations and administrative work in-house to save outside professional services.

We incurred bank charges and interest of $32,663 for the three months ended September 30, 2013, as compared to $29,582 for the three months ended September 30, 2012. The increase of in bank charges and interest is attributable to  interest expense resulting from  convertible promissory notes.

Our expenditures were also higher over the prior period as a result of increased consulting and management fees incurred during the reporting period.We incurred consulting and management fees of $42,173 for the three months ended September 30 , 2013, as compared to $10,500 for the three months ended September 30, 2012. The increase in consulting and management fees is attributable  an increase exploration activities especially related to new and potential property interests, and consulting services required to support these activities, and more work done in-house by Company personnel. Exploration and mineral property expenses totaled $12,000 for the three months ended September 30,2013, compared to $12,319 in the three months ended September 30, 2012.

Other Items

We reported a gain on forgiveness of debt of $5,373 for the three months ended September 30, 2013, and for the three month period ending September 30, 2012  no other income or expenses was reported.

Net (Income) Loss

As a result of the above, for the three months ended September 30, 2013, we reported a net loss of $112,900. For the three months ended September 30, 2012, we reported a net loss of $69,168.

Results of Operations for the Nine Months Ended September 30, 2013 and 2012

Revenues

We have not generated any revenues from our operations since our inception and we do not expect to generate revenues in the near future, due to the exploratory nature of operations at this time.

Operating Expenses

We reported operating expenses in the amount of $303,858 for the nine months ended September 30, 2013, compared to operating expenses of $191,914 for the nine months ended September 30, 2012 The increase in operating expenses for the nine months ended September 30, 2013, as compared to the nine months ended September 30, 2012, was primarily a result of an increase in bank and interest charges, consulting and management fees ,shareholder communications and exploration expenses.

We incurred bank charges and interest of $90,357 for the nine months ended September 30, 2013, as compared to $64,037 for the nine months ended September 30, 2012. The increase in bank charges and interest is attributable to increased interest resulting from  convertible promissory notes.

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Current period expenditures were also lower over the prior period as a result of increased consulting and management fees incurred during the reporting period.We incurred consulting and management fees of $78,473 for the nine months ended September 30, 2013, as compared to $29,250 for the nine months ended September 30, 2012. The increase in consulting and management fees is attributable an  increase exploration activities, consulting services required to support these activities, and more work done in-house by company personnel. Exploration and mineral property expenses totaled $41,500 for the nine months ended September 30,2013, compared to $29,819 in the nine months ended September 30, 2012.

We incurred professional fees of $41,322 for the nine months ended September 30, 2013, compared to $37,879 for the nine months ended September 30 2012. The decrease in professional fees is attributable tolower accounting, financial reporting and legal services expense for the period, primarily due to more administrative support work being performed in house. Shareholder communication costs increased from $175 in the nine month period ending September 30,2012, to $23,775 for the period ending September 30,2013.

Other Items

During the nine months ended September 30, 2013 other items included $50,730 in income form forgiveness of debts, and a write down of mineral property interests of $36,650. In the nine month period ending September 30,2012  there were no other items.

Net (Income) Loss

As a result of the above, for the nine months ended September 30, 2013, we reported a net loss of $289,778. For the nine months ended September 30, 2012, we reported a net loss of $191,914.

Liquidity and Capital Resources

At September 30, 2013, we had cash and cash equivalents of $0, compared to $0 at December 31, 2012. At September 30, 2013, we had a working capital deficit of $323,584, compared to a working capital deficit of $570,498  at December 31, 2012.  This reduction in our working capital deficit of $246,914 resulted primarily from the issuance of $202,746 in two year notes payable in exchange for satisfaction of accounts payable, and a decline in the net book value of convertible notes payable

Our present capital resources are insufficient to commence and sustain any planned exploration activity. Our current cash on hand is insufficient to be able to make all cash payments required in connection with our acquisition of the Boulder Hill Project and those cash payments and exploration expenditures which are required in order to exercise our option to acquire a 100% interest in mineral property interests proposed plan of exploration anticipates that we would havel incurred aggregate exploration related expenditures of $260,000over the next twelve months; with minimum payments would amount to $125,000 in the next twelve months on exploration related expenses, with a total of $664,000 in exploration planned for the next twenty-four months, subject to available funding. Accordingly the Company elected to abandon the current planned expenditures on the South Idaho Silver project, and is currently forecasting subject to financing being secured an exploration and acquisition budget of $240,000over the next 12 months.

In addition to any expenditures related to any exploration activity, our business plan provides for spending of approximately $15,000 in ongoing general and administrative expenses per month for the next twelve months, for a total anticipated expenditure for general and administrative expenses of $180,000 over the next twelve months. The general and administrative expenses for the year will consist primarily of professional fees for the audit and legal work relating to our regulatory filings throughout the year, as well as transfer agent fees and general office expenses.

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Accordingly, we must obtain additional financing in order to continue our plan of operations during and beyond the next twelve months, which would include being able to sustain any exploration activity. We believe that debt financing will not be an alternative for funding additional phases of exploration as we have limited tangible assets to secure any debt financing. We anticipate that additional funding will be in the form of equity financing from the sale of our common stock. We cannot provide investors with any assurance that we will be able to raise sufficient funding from the sale of our common stock to fund our complete exploration programs or any acquisition of additional property interests. Any issuance of common stock would dilute the interests of our existing stockholders. In the absence of such financing, we will not be able to pursue our exploration program and may not be able to maintain our mineral property interests in good standing. If we do not fulfill the terms of any of our option agreements according to our business plan, then our ability to commence or continue operations could be materially limited. We also may be forced to abandon our mineral property interests. If we are unable to raise additional capital in the near future, we will experience liquidity problems and management expects that we will need to curtail operations, liquidate assets, seek additional capital on less favorable terms and/or pursue other remedial measures.

We may consider entering into a joint venture arrangement to provide the required funding to explore the properties underlying our mineral property interests. We have not undertaken any efforts to locate a joint venture participant. Even if we determine to pursue a joint venture participant, there is no assurance that any third party would enter into a joint venture agreement with us in order to fund exploration of the properties underlying our mineral property interests. If we enter into a joint venture arrangement, we would likely have to assign a percentage of our interest in our mineral property interests to the joint venture participant.

The company has been dependent on convertible note financing which can be highly dilutive to existing shareholders, and there is no assurance the company can continue to receive such financing.

Cash Used in Operating Activities

Operating activities in the nine months ended September 30, 2013 and 2012 used cash of $68,832 and $67,061, respectively, which reflect our recurring operating losses. Our net loss reported for nine months ended September 30, 2013 and September 30,2012  was the primary reason for our negative operating cash flows. Our negative operating loss contributing to negative operating cash flows for the nine months ended September 30, 2013 was partially offset by accrued interest of $90,370 for the reporting period as compared to $62,951 in the nine month period ending September 30,2012, and increase in accounts payable of $115,835 in the nine months ended September 30,2013 as compared to an increase of $59,195 in the period ending September 30,2012.

Cash Used in Investing Activities

For the nine months ended September 30, 2013, we used $4,150 in investing activities, as compared to  $0 used in investing activities during the nine months ended September 30, 2012.

Cash from Financing Activities

As we have had no revenues since inception, we have financed our operations primarily by using existing capital reserves and through private placements of our stock. Net cash flows provided by financing activities for the nine months ended September 30, 2013 was $72,982, which consisted of proceeds of convertible notes issued to Asher Enterprises, Inc. Net cash flows provided by financing activities for the nine months ended September 30, 2012 was $65,000, which consisted entirely of proceeds of convertible note issued to Asher Enterprises,Inc.

Commitments

Convertible Notes

On November 23, 2011, we entered into a Securities Purchase Agreement (“Purchase Agreement”) with Asher Enterprises, Inc., a Delaware corporation (“Asher”), relating to the issuance and sale to Asher of an unsecured convertible promissory note (the “ November 2011 Note”) in a private transaction (the “Transaction”) with a principal amount of $37,500. We received net proceeds of $37,500 from the Transaction on December 1, 2011. Interest on the November 2011 Note accrues at a rate of 8% annually and is to be paid with principal in full on the maturity date of August 28, 2012. The principal amount of the Note together with interest may be converted into shares of our common stock, par value $0.00001, at the option of the Asher at a conversion price equal to fifty-eight percent (58%) of the Market Price (as defined in the November 2011 Note) for the Common Stock during the ten trading days prior to the conversion. During the nine month period ending September 30, 2013 the Company issued 5,945,378 common shares valued at $2,600 reducing the principal amount to $0.

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On March 16, 2012, we issued Asher an unsecured convertible promissory note (the “March 2012 Note”) with a principal amount of $37,500 with substantially the same terms and conditions as the November 2011 Note. The March 2012 Note has a maturity date of December 20, 2012, at which time interest, accruing at a rate of 8% annually, and principal are to be paid in full.During the period ending September 30,2013 the Companyissued common stock in the amount of 47,527,622 in settlement of $15,800 of this note. This promissory note has been paid in full through the issuance of common stock.

On June 6, 2012, we entered into an agreement we issued Asher an unsecured convertible promissory note (the “June 2012 Note”) with a principal amount of $27,500 with substantially the same terms and conditions as the November 2011 Note; the June 2012 note was funded on July 2, 2012. The June 2012 Note has a maturity date of March 6, 2013, at which time interest, accruing at a rate of 8% annually, and principal are to be paid in full through the issuance of common stock.

On December 18, 2012, (funded January 2, 2013) we entered into an agreement we issued Asher an unsecured convertible promissory note (the “December 2012 Note”) with a principal amount of $27,500 with substantially the same terms and conditions as the November 2011 Note; the December 18, 2012 note was funded on January 2, 2013. The December 2012 Note has a maturity date of September 20, 2013, at which time interest, accruing at a rate of 8% annually, and principal are to be paid in full. The conversion price is equal to 45% of the Market Price (as defined in the December 2012 Note). During the period ending September 30,2013 the Company issued common stock in the amount of 113,144,698 in settlement of $27,500 of this note. This promissory note has been paid in full through the issuance of common shares.

On February 21, 2013, we entered into an agreement we issued Asher an unsecured convertible promissory note (the “February 2013 Note”) with a principal amount of $27,500 with substantially the same terms and conditions as the November 2011 Note; the February 21, 2013 The February 21, 2013 Note has a maturity date of November 25, 2013, at which time interest, accruing at a rate of 8% annually, and principal are to be paid in full. The conversion price is equal to forty five percent (45%) of the Market Price (as defined in the February 2013 Note).During the period ending September 30,2013 the Company issued 55,174,600 common shares valued at $9,700 reducing the principal amount to $17,800.

On April 29, 2013, we entered into an agreement we issued Asher an unsecured convertible promissory note (the “April 2013 Note”) with a principal amount of $32,500 with substantially the same terms and conditions as the November 2011 Note; the April 29, 2013 The April Note has a maturity date of January 31, 2014, at which time interest, accruing at a rate of 8% annually, and principal are to be paid in full. The conversion price is equal to forty five percent (45%) of the Market Price (as defined in the April 2013 Note).The note was not funded until May 2013.

On August 8, 2013, we entered into an agreement we issued Asher an unsecured convertible promissory note (the “August 2013 Note”) with a principal amount of $12,995 with substantially the same terms and conditions as the November 2011 Note; the August 8, 2013 The August 2013 Note has a maturity date of May 12 ,2014, at which time interest, accruing at a rate of 8% annually, and principal are to be paid in full. The conversion price is equal to forty five percent (45%) of the Market Price (as defined in the August 2013 Note).The note was not funded until August 23, 2013.

If Asher decides not to convert the February 2013 Note , April 2013 Note or August 2013 Note, into shares of our common stock, we will have an obligation on the maturity date of each note to pay Asher all accrued interest and principal on such note. In such case, we would have to find sources of cash to re-pay Asher and there can be no assurance such resources will be available.

Cash Payments and Exploration Expenditures

Our obligations to make cash payments and incur exploration expenditures in connection with our acquisition of the Boulder Hill Project and the South Idaho Silver Project are described above in Part II of this Quarterly Report on Form 10-Q. These expenditures of property payments and exploration are required to maintain our mineral property interests. We have elected to not pay claim fees related to the South Idaho Silver project and have informed the owner Castle Creek Silver that the Company wishes to re-negotiate the terms of the existing mineral property agreements.

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Off Balance Sheet Arrangements

We do not have any off-balance sheet debt nor did we have any transactions, arrangements, obligations (including contingent obligations) or other relationships with any unconsolidated entities or other persons that may have material current or future effects on financial conditions, changes in the financial conditions, results of operations, liquidity, capital expenditures, capital resources, or significant components of revenue or expenses.

Going Concern

We have incurred an accumulated deficit for the period from inception on September 5, 1997 to September 30, 2013 of  $19,377,548 and have no source of revenue. The continuity of our future operations is dependent on our ability to obtain financing and upon future acquisition, exploration and development of profitable operations from our mineral properties. These conditions raise substantial doubt about our ability to continue as a going concern.

Critical Accounting Policies

Our interim consolidated financial statements have been prepared in conformity with GAAP. For a full discussion of our accounting policies as required by GAAP, refer to our Annual Report on Form 10-K for the years ended December 31, 2012 and December 31,2011. We consider certain accounting policies to be critical to an understanding of our consolidated financial statements because their application requires significant judgment and reliance on estimations of matters that are inherently uncertain. The specific risks related to these critical accounting policies are unchanged at the date of this report and are described in detail in our Annual Report on Form 10-K.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Not Applicable.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

We carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of September 30, 2013. This evaluation was carried out under the supervision and with the participation of our Chief Executive Officer and our Chief Financial Officer. Based upon that evaluation, our Chief Executive Officer and our Chief Financial Officer concluded that, as of September  30, 2013, our disclosure controls and procedures are not effective. Our conclusion is based primarily on the material weakness in internal control over financial reporting which was disclosed in our Annual Report on Form 10-K for the year ended December 31, 2012, where management identified material weaknesses, that were based on the size of our company and the fact that we have only one financial expert on our management team, no audit committee and no person on our board of directors that qualifies as an “audit committee financial expert”. We are in the process of considering changes to remediate these weaknesses.

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act are recorded, processed, summarized and reported, within the time periods specified in the SEC's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed under the Exchange Act is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.

- 27 -

Limitations on the Effectiveness of Internal Controls

Our management does not expect that our disclosure controls and procedures or our internal control over financial reporting will necessarily prevent all fraud and material error. Our disclosure controls and procedures are designed to provide reasonable assurance of achieving our objectives and our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures are effective at that reasonable assurance level. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within our company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the internal control. The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Over time, control may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate.

Changes in Internal Control Over Financial Reporting

There have been no changes in our internal controls over financial reporting during the quarter ended September 30, 2013 that have materially affected or are reasonably likely to materially affect such controls.

- 28 -

PART II – OTHER INFORMATION

Item 1. Legal Proceedings.

We are not a party to any pending legal proceeding. We are not aware of any pending legal proceeding to which any of our officers, directors, or any beneficial holders of five percent or more of our voting securities are adverse to us or have a material interest adverse to us.

Item 1A. Risk Factors.

Not Applicable.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

The Company during the quarter ending September 30, 2013 issued a total of 171,319,300 shares valued at $38,300, in settlement of convertible notes payable.

Exemption From Registration Claimed

All of the above sales by the Company of its unregistered securities were made by the Company in reliance upon Rule 506 of Regulation D and Section 4(2) of the Securities Act of 1933, as amended (the "1933 Act"). All of the individuals and/or entities that purchased the unregistered securities were primarily existing shareholders, known to the Company and its management, through pre-existing business relationships, as long standing business associates and employees. All purchasers were provided access to all material information, which they requested, and all information necessary to verify such information and were afforded access to management of the Company in connection with their purchases. All purchasers of the unregistered securities acquired such securities for investment and not with a view toward distribution, acknowledging such intent to the Company. All certificates or agreements representing such securities that were issued contained restrictive legends (to be removed subject per rule 144), prohibiting further transfer of the certificates or agreements representing such securities, without such securities either being first registered or otherwise exempt from registration in any further resale or disposition. The issuances were not accompanied by advertising nor were any commissions paid on the sales.

Item 3. Defaults upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

None.

Item 5. Other Information.

None.

- 29 -

Item 6. Exhibits.

Exhibit No.	Description	Filed Herewith
31.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	X
31.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	X
32.1	Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	X
101.INS  *	XBRL Instance Document	X
101 SCH *	XBRL Taxonomy Extension Schema Document	X
101.CAL *	XBRL Taxonomy Extension Calculation Linkbase Document	X
101 LAB *	XBRL Extension Labels Linkbase Document	X
101.PRE  *	XBRL Taxonomy Extension Presentation Linkbase Document	X
101.DEF *	XBRL Taxonomy Extension Definition Linkbase Document	X

* In accordance with SEC rules, this interactive data file is deemed “furnished” and not “filed” for purposes of Sections 11 or 12 of the Securities Act of 1933 and Section 18 of the Securities and Exchange Act of 1934, and otherwise is not subject to liability under those sections or acts.

- 30 -

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	First Colombia Gold Corp.
Date: November 19, 2013	By: /s/  Piero Sutti-Keyser                                                                                     Piero Sutti-Keyser Title :   Chief Executive Officer (Principal Executive Officer)
Date: November 19, 2013	By: /s/  Gilberto Zapata                                                                                        Gilberto Zapata Title:Chief Financial Officer (Principal Accounting Officer)

- 31 -

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, Piero Sutti-Keyser, certify that;

(1) I have reviewed this quarterly report on Form 10-Q of First Colombia Gold Corp.;

(2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

(3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

(4) The registrant’s other certifying officer(s) an I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(1) and 15d-15(f) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

(5) The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of the internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: November 19, 2013

/s/       PieroSsutti-Keyser                                                

By:     PieroSutti-Keyser,

Title:  Chief Executive Officer

           (Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, Gilberto Zapata, certify that;

(1) I have reviewed this quarterly report on Form 10-Q of First Colombia Gold Corp.;

(2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

(3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

(4) The registrant’s other certifying officer(s) an I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(1) and 15d-15(f) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

(5) The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of the internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: November 19, 2013

/s/       Gilberto Zapata                                              

By:     Gilberto Zapata,

Title:  Chief Financial Officer

           (Principal Accounting Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND

CHIEF FINANCIAL OFFICER

PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the accompanying Quarterly Report on Form 10-Q of First Colombia Gold Corp. for the quarter ended September 30, 2013, I certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to my knowledge, that:

(1) the Quarterly Report on Form 10-Q of First Colombia Gold Corp. for the quarter ended September 30, 2013, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) the information contained in the Quarterly Report on Form 10-Q for the quarter ended September 30, 2013, fairly presents in all material respects, the financial condition and results of operations of First Colombia Gold Corp.

By:	/s/  Piero Sutti-Keyser
Name:	Piero Sutti-Keyser
Title:	Chief Executive Officer       (Principal Executive Officer)
Date:	November 19, 2013
By:	/s/   Gilberto Zapata
Name:	Gilberto Zapata
Title:	Chief Financial Officer        (Principal Accounting Officer)
Date:	November 19,2013

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to First Colombia Gold Corp. and will be retained by First Colombia Gold Corp. and furnished to the Securities and Exchange Commission or its staff upon request.

XML

12. Supplemental Disclosures with Respect to Cash Flows

9 Months Ended

Sep. 30, 2013

Notes to Financial Statements

Supplemental Disclosures with Respect to Cash Flows

Included in accounts payable and accrued liabilities as at 30 September 2013 are mineral property acquisition costs and exploration expenditures of $3,091 (31 December 2012 – $19,394) related to the Boulder Hill Project (Notes 3 and 5).

Included in accounts payable and accrued liabilities as at 30 September 2013 are exploration expenditures of $11,245 (31 December 2012 – $10,245) related to the South Idaho Silver Project (Notes 3 and 5).

During the year ended 31 December 2012, the Company recorded a write-down of mineral property in the amount of $33,000 in relation to the Boulder Hill Claims and Boulder Hill Property (Note 3).

During the nine month period ended 30 September 2013, the Company recorded a provision for write-down of mineral property in the amount of $36,650 (30 September 2012 - $Nil) in relation to the South Idaho Property (Notes 3, 10 and 14).

During the nine month period ended 30 September 2013, the Company accrued a total interest expense of $86,763 (30 September 2012 – $62,951) related to the convertible debentures, of which $66,451 relates to the amortization of debt discount (30 September 2012 – $57,195) and $13,750 relates to the default penalty (30 September 2012 - $Nil) (Note 6).

During the nine month period ended 30 September 2013, the Company recorded a write-down of accrued interest in the amount of $5,938 (30 September 2012 - $Nil) in relation to the Asher Note, Asher Note #2, Asher Note #3 and Asher Note #4 (Note 6).

During the nine month period ended 30 September2013, the Company issued a total of 47,568,500 class A preferred shares valued at $104,650 ($0.0022 per share) for the settlement of liabilities totaling $150,007 with officers, directors and unrelated parties. The Company recorded a gain of $45,357 related to this settlement (Notes 5, 8 and 9).

During the nine month period ended 30 September 2013, the Company entered into agreements with various vendors to convert a total of $201,100 the amounts payable to the vendors to long-term promissory notes. The promissory notes have a term of two years, are unsecured, and bear interest of 5% per annum.  During the nine month period ended 30 September 2013, the Company accrued interest of $1,376 (30 September 2012 - $Nil, cumulative - $1,376) (Notes 5 and 7).

During the nine month period ended 30 September 2013, the Company wrote down $5,373 of the amount payable to a vendor.  Management does not consider this amount to be payable; however, there is no assurance that a formal claim will not be made against the Company for some or all of these amounts in the future (Notes 5 and 10).

	For the period from the date of inception on 5 September 1997 to 30 September 2013			For the nine month period ended 30 September 2013		For the nine month period ended 30 September 2012
	$			$		$
Supplemental cash flows information
Interest expense		1,906			-		-
Foreign exchange (gain) loss		21,787			-		-
Income taxes paid		-			-		-
Supplemental disclosure of non-cash investing and financing
Common shares issued for oil and gas property ($25 per share)		10,000			-		-
Common shares issued for services ($6 per share)		50,000			-		-
Donated consulting services		16,200			-		-
Common shares cancelled and returned		(2	)		-		-
Common shares issued for equity acquisition of Finmetal ($25.60 per share)		1,280,000			-		-
Restricted shares issued ($24.80 per share)		2,418,000			-		-
Common shares issued for finder’s fee ($10 per unit)		254,500			-		-
Warrants issued		100,421			-		-
Common shares issued for finder’s fee for mineral property interests ($26.80 per share)		536,000			-		-
Common shares issued for acquisition of mineral rights (deemed at $0.003 to $0.25 per share)		2,320,000			-		-
Common shares issued upon conversions of promissory note ($0.00011 to $0.0080 per share)		158,650			123,750		-
Preferred shares issued for settlement of debt ($0.0022 per share)		104,650			104,650		-

XML

Interim Consolidated Statements of Operations (Unaudited) (USD $)	3 Months Ended		9 Months Ended		193 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013
Expenses
Amortization - equipment (Note 4)	$ 440	$ 899	$ 1,321	$ 2,697	$ 45,056
Amortization - website development cost					40,001
Bank charges and interest (Note 6)	32,663	29,582	90,357	64,037	1,732,412
Consulting and management fees (Note 8)	42,173	10,500	78,473	29,250	5,420,155
Foreign exchange loss					19,657
Investor communication and promotion	14,500	175	23,775	175	656,521
Office and administrative	1,040	1,100	2,835	1,117	113,629
Professional fees	7,843	6,748	41,322	37,879	914,590
Rent				600	57,016
Stock-based compensation (Note 9)					22,399
Telephone					54,659
Transfer agent and filing fees	7,614	7,845	24,275	26,340	124,795
Travel and accommodation					377,754
Website maintenance					86,000
Mineral property exploration expenditures (Note 3)	12,000	12,319	41,500	29,819	5,144,574
Net operating loss before other items	(118,273)	(69,168)	(303,858)	(191,914)	(14,809,218)
Other items
Forgiveness of debt (Note 5)	5,373		50,730		89,730
Gain on sale of oil and gas property					10,745
Interest income					102,561
Recovery of expenses					4,982
Provision for write-down of mineral property interests (Note 3)			(36,650)		(5,069,650)
Write-down of incorporation cost					(12,500)
Write-down of assets					(14,111)
Net operating loss before income taxes	(112,900)	(69,168)	(289,778)	(191,914)	(19,697,461)
Future income tax recovery					2,319,871
Net operating loss from continuing operations	(112,900)	(69,168)	(289,778)	(191,914)	(17,377,590)
Discontinued operations of Beardmore Holdings, Inc.					(1,999,958)
Net operating loss and comprehensive loss for the period	$ (112,900)	$ (69,168)	$ (289,778)	$ (191,914)	$ (19,377,548)
Basic and diluted loss per common share
Basic and diluted loss per common share	$ 0.00	$ (0.001)	$ (0.001)	$ (0.004)
Weighted average number of common shares used in per share calculations	315,574,266	47,215,190	236,764,761	43,611,525

XML

5. Accounts Payable and Accrued Liabilities

9 Months Ended

Sep. 30, 2013

Notes to Financial Statements

Accounts Payable and Accrued Liabilities

Accounts payable and accrued liabilities are non-interest bearing, unsecured and have settlement dates within one year.

On 31 January 2013, the Company issued a total of 37,022,900class A preferred shares valued at $81,450 ($0.0022 per share) for the settlement of liabilities totaling $126,807 with unrelated parties. The Company recorded a gain of $45,357 related to this settlement (Notes 9 and 12).

On 30 June 2013, the Company entered into agreement with various vendors to convert $90,000 the amounts payable to the vendors to long-term promissory notes. The promissory notes have a term of two years, are unsecured, and bear interest of 5% per annum (Notes 7 and 12).

On 20 August 2013, the Company entered into agreement witha vendorto convert $43,000of the amount payable to the vendor to a long-term promissory note. The promissory notehasa term of two years, is unsecured, and bears interest of 5% per annum.  The Company also wrote down $5,373 of the amount payable to the vendor.  Management does not consider this amount to be payable; however, there is no assurance that a formal claim will not be made against the Company for some or all of these amounts in the future (Notes 7, 10 and 12).

On 30 September 2013, the Company entered into agreement with various vendors to convert $68,100 the amounts payable to the vendors to long-term promissory notes. The promissory notes have a term of two years, are unsecured, and bear interest of 5% per annum (Note 7).

Included in accounts payable and accrued liabilities as at 30 September 2013 is an amount due to a former officer of the Company of $3,551 (31 December 2012 – $3,876). These amounts are non-interest bearing, unsecured and have no fixed terms of repayment (Note 8).

Included in accounts payable and accrued liabilities as at 30 September 2013 is an amount due to a director of the Company of $14,112 (31 December 2012 – $10,817). This amount is non-interest bearing, unsecured and have no fixed terms of repayment (Note 8).

Included in accounts payable and accrued liabilities as at 30 September 2013 is an amount due to an officer of the Company of $12,875 (31 December 2012 – $10,000). This amount is non-interest bearing, unsecured and have no fixed terms of repayment (Note 8).

Included in accounts payable and accrued liabilities as at 30 September 2013 is an amount due to an officer of the Company of $6,250 (31 December 2012 – $4,150). This amount is non-interest bearing, unsecured and have no fixed terms of repayment (Note 8).

Included in accounts payable and accrued liabilities as at 30 September 2013 are mineral property acquisition costs and exploration expenditures of $3,091 (31 December 2012 – $19,394) related to the Boulder Hill Project (Notes 3 and 12).

Included in accounts payable and accrued liabilities as at 30 September 2013 are exploration expenditures of $11,245 (31 December 2012 – $10,245) related to the South Idaho Silver Project (Notes 3 and 12).

XML

6. Convertible Promissory Notes (Tables)

9 Months Ended

Sep. 30, 2013

Convertible Promissory Notes Tables

Convertible Promissory Notes

	Principal, net of debt discount		Accrued interest		As at 30 September 2013		As at 31 December 2012 (Audited)
					$		$
Asher Note		-		-		-		5,853
Asher Note #2		-		-		-		40,041
Asher Note #3		-		-		-		22,463
Asher Note #4		-		-		-		1,373
Asher Note #5		12,142		1,320		13,462		-
Asher Note #6		17,951		1,090		19,041		-
Asher Note #7		2,332		140		2,472		-
		32,425		2,550		34,975		69,730

XML

13. Fair Value of Financial Instruments

9 Months Ended

Sep. 30, 2013

Notes to Financial Statements

Fair Value of Financial Instruments

A fair value hierarchy was established that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurements).

The fair values of the financial instruments were determined using the following input levels and valuation techniques:

Level 1:	classification is applied to any asset or liability that has a readily available quoted market price from an active market where there is significant transparency in the executed/quoted price.
Level 2:	classification is applied to assets and liabilities that have evaluated prices where the data inputs to these valuations are observable either directly or indirectly, but do not represent quoted market prices from an active market.
Level 3:	classification is applied to assets and liabilities when prices are not derived from existing market data and requires us to develop our own assumptions about how market participants would price the asset or liability.

As at 30 September 2013, the carrying amounts of accounts payable and convertible promissory notes approximated their estimated fair values because of the short maturity of these financial instruments.

As at 30 September 2013, the carrying amount of long-term debt and other financing was $202,476 (31 December 2012 - $Nil).

The fair value of the beneficial conversion feature was estimated at $79,516 (31 December 2012 – $81,077), and was recorded as a component of equity, of which $79,516 (31 December 2012 - $81,077) would be a Level 1 fair value and $Nil (31 December 2012 - $Nil) would be a Level 2 fair value.

Credit Risk

Credit risk is the risk of an unexpected loss if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises primarily from the Company’s cash and cash equivalents. The Company manages its credit risk relating to cash and cash equivalents by dealing only with highly-rated United States financial institutions. As a result, credit risk is considered insignificant.

Currency Risk

The majority of the Company’s cash flows and financial assets and liabilities are denominated in US dollars, which is the Company’s functional and reporting currency. Foreign currency risk is limited to the portion of the Company’s business transactions denominated in currencies other than the US dollar.

The Company monitors and forecasts the values of net foreign currency cash flow and balance sheet exposures and from time to time could authorize the use of derivative financial instruments such as forward foreign exchange contracts to economically hedge a portion of foreign currency fluctuations. Currently, the Company does not use derivative instruments to reduce its exposure to foreign currency risk.

Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company manages liquidity risk by continuously monitoring actual and projected cash flows and matching the maturity profile of financial assets and liabilities. The Company had a working capital deficit of $323,584 at 30 September 2013 (31 December 2012 – $570,498), but management cannot provide assurance that the Company will ultimately achieve profitable operations or become cash flow positive, or raise additional debt and/or equity capital.

Other Risks

Unless otherwise noted, the Company is not exposed to significant interest rate risk and commodity price risk.

XML

9. Common Stock (Details) (USD $)	Sep. 30, 2013
Number of options	325,000
Option One [Member]
Number of options	250,000
Exercise price	$ 0.07
Remaining life (years)	8 months 12 days
Option Two [Member]
Number of options	75,000
Exercise price	$ 0.15
Remaining life (years)	8 years 7 months 2 days

XML

1. Nature, Basis of Presentation (Details Narrative) (USD $)	3 Months Ended		9 Months Ended		193 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Dec. 31, 2012
Nature Basis Of Presentation Details Narrative
Net loss	$ (112,900)	$ (69,168)	$ (289,778)	$ (191,914)	$ (19,377,548)
Working capital deficit	323,584		323,584		323,584	570,498
Cumulative Net loss				$ 19,377,548

XML

12. Supplemental Disclosures with Respect to Cash Flows (Tables)

9 Months Ended

Sep. 30, 2013

Supplemental Disclosures With Respect To Cash Flows Tables

Supplemental cash flows information

	For the period from the date of inception on 5 September 1997 to 30 September 2013			For the nine month period ended 30 September 2013		For the nine month period ended 30 September 2012
	$			$		$
Supplemental cash flows information
Interest expense		1,906			-		-
Foreign exchange (gain) loss		21,787			-		-
Income taxes paid		-			-		-
Supplemental disclosure of non-cash investing and financing
Common shares issued for oil and gas property ($25 per share)		10,000			-		-
Common shares issued for services ($6 per share)		50,000			-		-
Donated consulting services		16,200			-		-
Common shares cancelled and returned		(2	)		-		-
Common shares issued for equity acquisition of Finmetal ($25.60 per share)		1,280,000			-		-
Restricted shares issued ($24.80 per share)		2,418,000			-		-
Common shares issued for finder’s fee ($10 per unit)		254,500			-		-
Warrants issued		100,421			-		-
Common shares issued for finder’s fee for mineral property interests ($26.80 per share)		536,000			-		-
Common shares issued for acquisition of mineral rights (deemed at $0.003 to $0.25 per share)		2,320,000			-		-
Common shares issued upon conversions of promissory note ($0.00011 to $0.0080 per share)		158,650			123,750		-
Preferred shares issued for settlement of debt ($0.0022 per share)		104,650			104,650		-

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6. Convertible Promissory Notes (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Principal net of debt discount	$ 32,425	$ 69,730
Accrued interest	2,550
Total	34,975
Asher Note [Member]
Principal net of debt discount		5,853
Accrued interest
Total
Asher Note 2 [Member]
Principal net of debt discount		40,041
Accrued interest
Total
Asher Note Three [Member]
Principal net of debt discount		22,463
Accrued interest
Total
Asher Note Four
Principal net of debt discount		1,373
Accrued interest
Total
Asher Note Five [Member]
Principal net of debt discount	12,142
Accrued interest	1,320
Total	13,462
Asher Note Six [Member]
Principal net of debt discount	17,951
Accrued interest	1,090
Total	19,041
Asher Note Seven [Member]
Principal net of debt discount	2,332
Accrued interest	140
Total	$ 2,472

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12. Supplemental Disclosures with Respect to Cash Flows (Details) (USD $)	9 Months Ended		193 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013
Supplemental cash flows information
Interest expense			$ 1,906
Foreign exchange (gain) loss			21,787
Income taxes paid
Supplemental disclosure of non-cash investing and financing
Common shares issued for oil and gas property ($25 per share)			10,000
Common shares issued for services ($6 per share)			50,000
Donated consulting services			16,200
Common shares cancelled and returned			(2)
Common shares issued for equity acquisition of Finmetal ($25.60 per share)			1,280,000
Restricted shares issued ($24.80 per share)			2,418,000
Common shares issued for finder's fee ($10 per unit)			254,500
Warrants issued			100,421
Common shares issued for finder's fee for mineral property interests ($26.80 per share)			536,000
Common shares issued for acquisition of mineral rights (deemed at $0.003 to $0.25 per share)			2,320,000
Common shares issued upon conversions of promissory note ($0.00058 to $0.0013 per share)	123,750		158,650
Preferred shares issued for settlement of debt ($0.0022 per share)	$ 104,650		$ 104,650

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4. Property and Equipment (Details) (USD $)	9 Months Ended
	Sep. 30, 2013	Dec. 31, 2012 Furniture Computer And Office Equipment [Member]
Cost	$ 47,433
Accumulated Amortization	42,880
Net Book Value	$ 4,553	$ 5,874

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9. Common Stock (Tables)

9 Months Ended

Sep. 30, 2013

Common Stock Tables

Stock options

	NUMBER OF OPTIONS		EXERCISE PRICE		REMAINING LIFE (YEARS)
			$
OPTIONS		250,000		0.07		0.20
OPTIONS		75,000		0.15		8.09
		325,000

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1. Nature, Basis of Presentation

9 Months Ended

Sep. 30, 2013

Notes to Financial Statements

Nature, Basis of Presentation and Continuance of Operations

First Colombia Gold Corp. (the “Company”) was incorporated under the laws of the State of Nevada, U.S.A. under the name “Gondwana Energy, Ltd.” on 5 September 1997. On 23 January 2007, the Company changed its name to “Finmetal Mining Ltd.”. On 27 November 2006, the Company completed the acquisition of 100% of the shares of Finmetal Mining OY (“Finmetal OY”), a company incorporated under the laws of Finland. During the fiscal year ended 31 December 2006, the Company changed its operational focus from development of oil and gas properties, to acquisition of, exploration for and development of mineral properties in Finland.

On 22 May 2008, the Company changed its name to “Amazon Goldsands Ltd.” and on 18 September 2008, the Company entered into a Mineral Rights Option Agreement and concurrently re-focused on the acquisition of, exploration for and development of mineral properties located in Peru. On 29 November 2010, the Company changed its name to “First Colombia Gold Corp.”. The Company changed its name pursuant to a parent/subsidiary merger between the Company (as Amazon Goldsands Ltd.) and its wholly-owned non-operating subsidiary, First Colombia Gold Corp., which was established for the purpose of giving effect to this name change. In 2011 the Company expanded geographic focus to include North America, acquiring two mineral property interests while terminating its agreements related to the mineral property located in Peru in September 2011.

The Company is an exploration stage enterprise, as defined in Accounting Standards Codification (the “Codification” or “ASC”) 915-10, “Development Stage Entities”. The Company is devoting all of its present efforts in securing and establishing a new business. Its planned principal operations have not commenced and no revenue has been derived during the organization period.

The business of mining and exploring for minerals involves a high degree of risk and there can be no assurance that current exploration programs will result in profitable mining operations. The recoverability of the carrying value of exploration properties and the Company’s continued existence are dependent upon the preservation of its interest in the underlying properties, the discovery of economically recoverable reserves, the achievement of profitable operations, or the ability of the Company to raise alternative financing, if necessary, or alternatively upon the Company’s ability to dispose of its interests on an advantageous basis. Changes in future conditions could require material write downs of the carrying values.

Although the Company has taken steps to verify the title to the properties on which it is conducting exploration and in which it has an interest, in accordance with industry standards for the current stage of exploration of such properties, these procedures do not guarantee the Company’s title. Property title may be subject to unregistered prior agreements and non-compliance with regulatory requirements.

The accompanying interim consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Finmetal OY, a company incorporated under the laws of Finland, since its date of acquisition on 27 November 2006 and the results of Beardmore Holdings, Inc. (“Beardmore”), a company incorporated under the laws of Panama, to the date of disposal on 21 September 2011.

The accompanying interim consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) applicable to exploration stage enterprises, and are expressed in U.S. dollars. The Company’s fiscal year end is 31 December.

The Company’s interim consolidated financial statements as at 30September 2013 and for the six month period then ended have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business.

The Company had a net loss of $289,778 for the nine month period ended 30 September 2013 (30 September 2012 - $191,914, cumulative - $19,377,548) and has a working capital deficit of $323,584 at 30 September 2013 (31 December 2012 – $570,498), but management cannot provide assurance that the Company will ultimately achieve profitable operations or become cash flow positive, or raise additional debt and/or equity capital. The Company’s solvency, ability to meet its liabilities as they become due and to continue its operations, is essentially solely dependent at present on funding provided by Asher Enterprises, Inc. (“Asher”). If Asher is unwilling to provide ongoing funding to the Company and/or if the Company is unable to raise additional capital in the immediate future, the Company will need to curtail operations, liquidate assets, seek additional capital on less favourable terms and/or pursue other remedial measures or cease operations. This material uncertainty may cast significant doubt about the ability of the Company to continue as a going concern. These interim consolidated financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern including adjustments related to employee severance pay and other costs related to ceasing operations.

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3. Mineral Property Interests

9 Months Ended

Sep. 30, 2013

Notes to Financial Statements

Mineral Property Interests

The Company’s exploration and evaluation properties expenditures for the nine month period ended 30 September 2013 and for the year ended 31 December 2012 are as follows:

	SOUTH IDAHO SILVER PROJECT			BOULDER HILL CLAIMS			BOULDER HILL PROJECT			URANIUM CLAIM PROSPECT		TOTAL
	$			$			$			$		$
AS AT 31 DECEMBER 2011		32,500			15,000			18,000			-		65,500
ADDITIONS		-			-			-			-
WRITE-DOWN		-			(15,000	)		(18,000	)		-		(33,000	)
AS AT 31 DECEMBER 2012		32,500			-			-			-		32,500
ADDITIONS		4,150			-			-			1,000		5,150
PROVISION FOR WRITE-DOWN		(36,650	)		-			-			-		(36,650	)
AS AT 30 SEPTEMBER 2013		-			-			-			1,000		1,000

South Idaho Silver Project

On 7 December 2011 (the “Effective Date”), the Company entered into an Assignment and Assumption Agreement (the “CCS Assignment”) with Castle Creek Silver Inc. (“Castle Creek”), an Idaho corporation, and Robert Ebisch (“Robert E”) to acquire by way of assignment from Castle Creek all of its rights, responsibilities and obligations under an Option to Purchase and Royalty Agreement (the “Purchase Agreement”) dated 15 July 2011, by and between Castle Creek and Robert E. Castle Creek, under the Purchase Agreement, had the option to acquire an undivided 100% of the right, title and interest of Robert E in the unpatented mining claims owned and situated in Owyhee County, Idaho (the “South Idaho Property”).

Pursuant to the terms of the CCS Assignment, Castle Creek transferred and assigned the Company all of its right, title and interest, in, to and under the Purchase Agreement and the Company assumed the assignment of the Purchase Agreement agreeing to be bound, the same extent as Castle Creek, to the terms and conditions of the Purchase Agreement.The Company agreed to make the following considerations to Castle Creek (Note 10):

·   Issue 1,000,000 restricted shares of the Company’s common stock by 12 December 2011 (issued on 7 December 2011 and valued at $30,000) (Note 9);

·   Pay $50,000 by 15 July 2013(unpaid) (Note 10); and

·   Castle Creek will be entitled to a 1% net smelter return (“NSR”) from any ore produced from the South Idaho Property.At any time from the Effective Date, the Company has the right to acquire the 1% NSR payable to Castle Creek for $250,000.

The Purchase Agreement and assignment of Castle Creek’s right, title and interest, in, to and under the Purchase Agreement provide that the Company will have exercised the option to acquire an undivided 100% of Robert E’s right, title and interest in and to the Property after incurring an aggregate of $210,000 in exploration expenditures, paying Robert E an aggregate of $80,000 plus 5% of any JVBP.The Purchase Agreement provides that the cash payments payable to Robert E shall be made according to the following schedule (Note 10):

·   $2,500 on or before 31 January 2012 plus 5% of any JVBP (paid);

·   $2,500 on or before 20June 2013 plus 5% of any JVBP (paid);

·   $5,000 on or before 15 September 2013 plus 5% of any JVBP (unpaid);

·   $10,000 on or before 15 September 2014 plus 5% of any JVBP;

·   $15,000 on or before 15 September 2015 plus 5% of any JVBP;

·   $20,000 on or before 15 September 2016 plus 5% of any JVBP; and

·   $25,000 on or before 15 September 2017 plus 5% of any JVBP.

The Purchase Agreement provides that the exploration expenditures of an aggregate of not less than $210,000 on the South Idaho Property shall be incurred as follows (Note 10):

·   On or before 15 April 2012, incur not less than an aggregate of $10,000 in exploration expenditures (an aggregate of $10,000 incurred);

·   On or before 15 July 2013, incur not less than an aggregate of $20,000 in exploration expenditures (an aggregate of $30,620 incurred);

·   On or before 15 September 2013, incur not less than an aggregate of $100,000 in exploration expenditures (not incurred); and

·   On or before 15 September 2014, incur not less than an aggregate of $210,000 in exploration expenditures.

In addition to the foregoing cash payments, exploration expenditures and filing fees, in order to maintain its interest in the South Idaho Property the Company will be responsible for the following (Note 10):

·   Make advance royalty payments to Robert E of $25,000 per year, commencing on 15 September 2015 and continuing on 15 September each and every year thereafter for so long as the Company retains its interest in the South Idaho Property; and

·   Incur a minimum of $100,000 of annual exploration expenditures on the South Idaho Property on or before 15 September each and every year after 15 September 2015, which could be offset by exploration expenditures in excess of $100,000 in any prior annual period.

On 7 December 2012, the Company entered into an agreement with Castle Creek to waive certain required cash payment and/or exploration expenditure related to the South Idaho Property until renegotiation after 31 March 2013 and before 30 June 2013, provided that a cash payment of $1,200 is paid prior to 31 March 2013 (paid).

On 31 May 2013, the Company entered into an agreement with Castle Creek to waive certain required cash payment and/or exploration expenditure related to the South Idaho Property until 15 July 2013, provided that a cash payment of $3,500 is paid prior to 15 July 2013 (unpaid).  Further, the Company may secure a waiver at any time during the year ended 31 December 2013 for the requirementsthat become due in 2014 in exchange for cash payment of or issuance of common shares valued at $50,000 (Note 10).

Included in accounts payable and accrued liabilities as at 30 September 2013 are exploration expenditures of $11,245 (31 December 2012 – $10,245) related to the South Idaho Silver Project (Notes 5 and 12).

The Company is currently in default with regards to certain obligations related to the South Idaho Property and is in the process of renegotiating the terms with Castle Creek (Note 14).

During the nine month period ended 30 September 2013, the Company recorded a provision for write-down of mineral property interests in the amount of $36,650 (30 June 2012 - $Nil, cumulative - $36,650) related to the South Idaho Property (Notes 10 and 12).

Boulder Hill Claims

On 16 December 2011, the Company entered into a Purchase and Sale Agreement (the “BHM Purchase”) with Boulder Hill Mines, Inc., an Idaho corporation (“Boulder Hill”), to purchase from Boulder Hill three unpatented mining claims situated in Lincoln County, Montana (the “Boulder Hill Claims”) by making the following considerations to Boulder Hill:

·   Issue 500,000 restricted shares of the Company’s common stock by 21 December 2011 (issued on 16 December 2011 and valued at $15,000) (Note 9);

·   Pay $25,000 in cash by 5 May 2013 (unpaid) (Note 10); and

·   Pay $25,000 in cash by 16 December 2013.

On 15 January 2013, the Company amended the agreement entered into on 12 October 2012 with Boulder Hill to extend the waiver of certain required cash payment and/or exploration expenditure related to the Boulder Hill Claims until 5 May 2013.

During the year ended 31 December 2012, the Company was in default related to certain obligations related to the Boulder Hill Claims.  The Company recorded a write-down of mineral property in the amount of $15,000 related to the Boulder Hill Claims.

Boulder Hill Project

On 30 September 2011, the Company entered into a non-binding letter of intent (“LOI”) with Boulder Hill to acquire by way of an assignment from Boulder Hill all of its rights, responsibilities and obligations under a state mineral lease and agreement (the “Option Agreement”) dated 15 July 2008 by and among Boulder Hill, James Ebisch (“James E”) and Ryan Riech (“Riech”).

James E and Riech, under the terms of the Option Agreement, hold the mining and mineral rights to a certain Montana State Metallferrous Gold Lease entered into with the State of Montana (the “Montana Gold Lease”) under which Boulder Hill was granted the exclusive right to prospect, explore, develop and mine for gold, silver and other minerals on a property situated in Lincoln County, Montana (the “Boulder Hill Property”). The Montana Gold Lease is for a 10-year term and is subject to the 5% net smelter return (“NSR”) due to the State of Montana. The Option Agreement was amended on 1 August 2011 to reflect James E as the sole owner of the Montana Gold Lease.

On 16 December 2011 (the “Effective Date”), the Company entered into an Assignment and Assumption Agreement (“BHM Assignment”) with Boulder Hill and James E, whereby Boulder Hill transferred and assigned the Company all of its right, title and interest, in, to and under the Option Agreement and the Company assumed the assignment of the Option Agreement agreeing to be bound, the same extent as Boulder Hill, to the terms and conditions of the Option Agreement.

The BHM Assignment required the Company to make the following considerations to Boulder Hill:

·   Issue 500,000 restricted shares of the Company’s common stock by 21 December 2011 (issued on 16 December 2011 and valued at $15,000) (Note 9);

·   Pay $25,000 in cash by 30September 2013 (unpaid); and

·   Pay $25,000 in cash by 16 December 2013.

The Option Agreement and the BHM Assignment provide that the Company will have exercised the option to acquire an undivided 100% of James E’s right, title and interest in and to the Montana Gold Lease after incurring an aggregate of $210,000 in exploration expenditures, paying James E an aggregate of $80,000 plus 5% of any joint-venture and buyout payments (the “JVBP”) and paying filing fees over the term of the Option Agreement.

The Option Agreement provides that the cash payments payable to James E shall be made according to the following schedule:

·   $20,000 on or before 30 September 2013 plus 5% of any JVBP, of which an initial payment of $3,000 is to be made on or before 30 October 2011 ($3,000 paid on 12 January 2012);

·   $15,000 on or before 30 September 2013 plus 5% of any JVBP (unpaid);

·   $20,000 on or before 15 July 2014 plus 5% of any JVBP; and

·   $25,000 on or before 15 July 2015 plus 5% of any JVBP.

The Option Agreement and claim purchase agreement require that the exploration expenditures of an aggregate of not less than $210,000 on the Property shall be incurred as follows:

·   On or before 30 September 2013, incur not less than an aggregate of $49,000 in exploration expenditures (an aggregate of $34,769 incurred); and

·   On or before 13 December 2013, incur not less than an aggregate of $210,000 in exploration expenditures.

In addition to the foregoing cash payments and exploration expenditures, in order to maintain James E’s leasehold interest in the Boulder Hill Property the Company will be responsible for paying filing fees over the term of the Option Agreement and Boulder Hill Agreement and the following:

·   Make advance royalty payments to James E of $25,000 per year, commencing on 15 July 2015 and continuing on 15 July each and every year thereafter for so long as the Company retains its leasehold interest in the Boulder Hill Property; and

·   Incur a minimum of $100,000 of annual exploration expenditures on the Boulder Hill Property on or before 15 July each and every year after 15 July 2011 (not incurred), which could be offset by exploration expenditures in excess of $100,000 in any prior annual period.

On 15 January 2013, the Company amended the agreement entered into on 12 October 2012 with Boulder Hill and James E to extend the waiver of certain required cash payment and/or exploration expenditure related to the Boulder Hill Property until 5 May 2013.

On 5 May 2013, the Company amended the waiver entered into on 15 January 2013 with Boulder Hill and James E to extend the waiver of certain required cash payment and/or exploration expenditure related to the Boulder Hill Property until 30 September 2013 (not completed).

Included in accounts payable and accrued liabilities as at 30 September 2013 are mineral property acquisition costs and exploration expenditures of $3,091 (31 December 2012 – $19,394) related to the Boulder Hill Project (Notes 5 and 12).

During the year ended 31 December 2012, the Company was in default related to certain obligations related to the Boulder Hill Project and as a result, the Company recorded a write-down of mineral property in the amount of $18,000 related to the Boulder Hill Project.

Uranium Claim Prospect

The Company acquired through location two unpatented mining claims in eastern Washington state in July 2013 comprising approximately forty acres.

Skip Silver Prospect

The Company acquired by right of location two unpatented mining claims in the state of Montana in 2012 covering approximately forty acres.

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6. Convertible Promissory Notes

9 Months Ended

Sep. 30, 2013

Notes to Financial Statements

Convertible Promissory Notes

a.   On 23 November 2011, the Company issued a convertible note to Asher in the amount of $37,500, bearing interest at a rate of 8% per annum on any unpaid principal balance, unsecured, with principal and interest amounts due and payable upon maturity on 28 August 2012 (the “Asher Note”). Any amount of principal or interest amount not paid on 28 August 2012 (the “Default Amount”) shall bear interest of 22% per annum commencing on 28 August 2012 to the date the amount is paid.

Asher has the option to convert any portion of the unpaid principal balance plus accrued and unpaid interest plus the Default Amount into the Company’s common shares at any time commencing 6 months after the date of issuance up to the later of 28 August 2012 or the date of the Default Amount is paid, at a conversion price equal to 58% of the market price for the common shares during the 10 trading days prior to the conversion.

The Asher Note contains a provision limiting the number of shares of common stock into which the Asher Note is convertible to 4.99% of the outstanding shares of the Company’s common stock. However, the provision in the Asher Note may be waived by Asher upon 61 days’ prior notice. The Company has a right of prepayment of the Asher Note anytime from the date of the Asher Note until 180 days thereafter, subject to a prepayment penalty in the amount of 130% to 150% of the outstanding principal and interest of the Asher Note based on the date of prepayment.

The fair value of the beneficial conversion feature was estimated at $27,155 and was recorded as additional paid-in capital.

During the year ended 31 December 2012, the Company issued a total of 42,182,653 common shares to Asher valued at $34,900 upon various conversions of Asher Note, reducing the principal amount to $2,600 as at 31 December 2012 (Notes 9 and 12).

During the nine month period ended 30 September 2013, the Company accrued interest expense of $8 (30September 2012 - $30,089, cumulative - $30,416), of which $Nil relates to the amortization of debt discount (30September 2012 – $26,668, cumulative - $27,155) (Note 12).

During the nine month period ended 30September 2013, the Company issued a total of 5,945,378 common shares to Asher valued at $4,100 upon various conversions of Asher Note, reducing the principal amount by $2,600 to $Nil, and accrued interest amount by $1,500 to $1,761 as at 30September 2013 (Notes 9 and 12).

During the nine month period ended 30 September 2013, the Company recorded a write-down of accrued interest of $1,761 related to the Asher Note (30 September 2012 - $Nil, cumulative - $1,761) (Note 12).

b.   On 16 March 2012, the Company issued a convertible note to Asher in the amount of $37,500, bearing interest at a rate of 8% per annum on any unpaid principal balance, unsecured, with principal and interest amounts due and payable upon maturity on 20 December 2012 (the “Asher Note #2”). Any amount of principal or interest amount not paid on 20 December 2012 (the “Default Amount #2”) shall bear interest of 22% per annum commencing on 20 December 2012 to the date the amount is paid.

Asher has the option to convert any portion of the unpaid principal balance into the Company’s common shares at any time commencing 6 months after the date of issuance up to the later of 20 December 2012 or the date of the Default Amount #2 is paid, at a conversion price equal to 58% of the market price for the common shares during the 10 trading days prior to the conversion.

The Asher Note #2 contains a provision limiting the number of shares of common stock into which the Asher Note #2 is convertible to 4.99% of the outstanding shares of the Company’s common stock. However, the provision in the Asher Note #2 may be waived by Asher upon 61 days’ prior notice. The Company has a right of prepayment of the Asher Note #2 anytime from the date of the Asher Note #2 until 180 days thereafter, subject to a prepayment penalty in the amount of 140% to 150% of the outstanding principal and interest of the Asher Note #2 based on the date of prepayment.

The fair value of the beneficial conversion feature was estimated at $27,155 and was recorded as additional paid-in capital.

During the nine month period ended 30September 2013, the Company accrued interest expense of $1,625 (30September 2012 – $20,936, cumulative - $31,321), of which $Nil relates to the amortization of debt discount (30September 2012 - $19,300, cumulative - $27,155) (Notes 9 and 12).

During the nine month period ended 30September 2013, the Company issued a total of 47,527,322 common shares to Asher valued at $39,000 upon various conversions of Asher Note #2, reducing the principal amount by $37,500 to $Niland accrued interest amount by $1,500 to $2,666 as at 30 September 2013 (Notes 9 and 12).

During the nine month period ended 30 September 2013, the Company recorded a write-down of accrued interest of $2,666related to the Asher Note #2 (30 September 2012 - $Nil, cumulative - $2,666) (Note 12).

c.   On 6 June 2012, the Company issued a convertible note to Asher in the amount of $27,500, bearing interest at a rate of 8% per annum on any unpaid principal balance, unsecured, with principal and interest amounts due and payable upon maturity on 6 March 2013 (the “Asher Note #3”). Any amount of principal or interest amount not paid on 6 March 2013 (the “Default Amount #3”) shall bear interest of 22% per annum commencing on 6 March 2013 to the date the amount is paid.

Asher has the option to convert any portion of the unpaid principal balance into the Company’s common shares at any time commencing 6 months after the date of issuance up to the later of 6 March 2013 or the date of the Default Amount #3 is paid, at a conversion price equal to 51% of the market price for the common shares during the 10 trading days prior to the conversion.

The Asher Note #3 contains a provision limiting the number of shares of common stock into which the Asher Note #3 is convertible to 9.99% of the outstanding shares of the Company’s common stock. However, the provision in the Asher Note #3 may be waived by Asher upon 61 days’ prior notice. The Company has a right of prepayment of the Asher Note #3 anytime from the date of the Asher Note #3 until 180 days thereafter, subject to a prepayment penalty in the amount of 140% to 150% of the outstanding principal and interest of the Asher Note #3 based on the date of prepayment.

The fair value of the beneficial conversion feature was estimated at $26,422 and was recorded as additional paid-in capital.

During the nine month period ended 30 September 2013, the Company was in default of the Asher Note #3 and the Company recorded a penalty in the amount of $13,750 (50% of the original principal) pursuant to the Asher Note #3 agreement, which has been recorded as interest expense (Note 12).

During the nine month period ended 30September 2013, the Company accrued interest expense of $20,847 (30September 2012 - $11,926, cumulative - $42,232), of which $6,291 relates to the amortization of the debt discount (30September 2012 - $11,227, cumulative - $26,422) and $13,750 relates to the default penalty (30 September 2012 - $Nil, cumulative - $13,750) (Note 12).

During the nine month period ended 30 September 2013, the Company issued a total of 60,393,147 common shares to Asher valued at $42,350 upon various conversions of Asher Note #3, reducing the principal amount by $41,250 to $Nil and accrued interest amount by $1,100 to $960 as at 30 September 2013 (Notes 9 and 12).

During the nine month period ended 30 September 2013, the Company recorded a write-down of accrued interest of $960 related to the Asher Note #3 (30 September 2012 - $Nil, cumulative - $960) (Note 12).

d.   On 18 December 2012, the Company issued a convertible note to Asher in the amount of $27,500, bearing interest at a rate of 8% per annum on any unpaid principal balance, unsecured, with principal and interest amounts due and payable upon maturity on 20 September 2013 (the “Asher Note #4”). Any amount of principal or interest amount not paid on 20 September 2013 (the “Default Amount #4”) shall bear interest of 22% per annum commencing on 20 September 2013 to the date the amount is paid.

Asher has the option to convert any portion of the unpaid principal balance into the Company’s common shares at any time commencing 6 months after the date of issuance up to the later of 20 September 2013 or the date of the Default Amount #4 is paid, at a conversion price equal to 45% of the market price for the common shares during the 30 trading days prior to the conversion.

The Asher Note #4 contains a provision limiting the number of shares of common stock into which the Asher Note #4 is convertible to 9.99% of the outstanding shares of the Company’s common stock. However, the provision in the Asher Note #4 may be waived by Asher upon 61 days’ prior notice. The Company has a right of prepayment of the Asher Note #4 anytime from the date of the Asher Note #4 until 180 days thereafter, subject to a prepayment penalty in the amount of 140% to 150% based on the date of repayment.

The fair value of the beneficial conversion feature was estimated at $33,611 and was recorded as additional paid-in capital.

During the nine month period ended 30 September 2013, the Company accrued interest expense of$19,608 (30 September 2012 – $Nil, cumulative - $20,981), of which $18,035 relates to the amortization of debt discount (30 September 2012 - $Nil, cumulative - $19,330) (Notes 9 and 12).

During the nine month period ended 30 September 2013, the Company issued a total of 113,144,698 common shares to Asher valued at $28,600 upon various conversions of Asher Note #4, reducing the principal amount by $27,500 to $Nil and accrued interest amount by $1,100 to $551 as at 30 September 2013 (Notes 9 and 12).

During the nine month period ended 30 September 2013, the Company recorded a write-down of accrued interest of $551 related to the Asher Note #4 (30 September 2012 - $Nil, cumulative - $551) (Note 12).

e.   On 21 February 2013, the Company issued a convertible note to Asher in the amount of $27,500, bearing interest at a rate of 8% per annum on any unpaid principal balance, unsecured, with principal and interest amounts due and payable upon maturity on 25 November 2013 (the “Asher Note #5”). Any amount of principal or interest amount not paid on 25 November 2013 (the “Default Amount #5”) shall bear interest of 22% per annum commencing on 25 November 2013 to the date the amount is paid.

Asher has the option to convert any portion of the unpaid principal balance into the Company’s common shares at any time commencing 6 months after the date of issuance up to the later of 25 November 2013 or the date of the Default Amount #5 is paid, at a conversion price equal to 45% of the market price for the common shares during the 30 trading days prior to the conversion.

The Asher Note #5 contains a provision limiting the number of shares of common stock into which the Asher Note #5 is convertible to 9.99% of the outstanding shares of the Company’s common stock. However, the provision in the Asher Note #5 may be waived by Asher upon 61 days’ prior notice. The Company has a right of prepayment of the Asher Note #5 anytime from the date of the Asher Note #5 until 180 days thereafter, subject to a prepayment penalty in the amount of 140% to 150% based on the date of repayment.

The fair value of the beneficial conversion feature was estimated at $33,611 and was recorded as additional paid-in capital.

During the six month period ended 30September 2013, the Company accrued interest expense of $23,162 (30September 2012 - $Nil, cumulative - $23,162), of which $21,842 relates to the amortization of debt discount (30September 2012 - $Nil, cumulative - $21,842) (Note 12).

During the nine month period ended 30 September 2013, the Company issued a total of 58,174,602 common shares to Asher valued at $9,700 upon various conversions of Asher Note #5, reducing the principal amount by $9,700 to $17,800 as at 30 September 2013 (Notes 9 and 12).

f.   On 29 April 2013, the Company issued a convertible note to Asher in the amount of $32,500, bearing interest at a rate of 8% per annum on any unpaid principal balance, unsecured, with principal and interest amounts due and payable upon maturity on 31 January 2014 (the “Asher Note #6”). Any amount of principal or interest amount not paid on 31 January 2014 (the “Default Amount #6”) shall bear interest of 22% per annum commencing on 31 January 2014 to the date the amount is paid.

Asher has the option to convert any portion of the unpaid principal balance into the Company’s common shares at any time commencing 6 months after the date of issuance up to the later of 31 January 2014 or the date of the Default Amount #6 is paid, at a conversion price equal to 45% of the market price for the common shares during the 30 trading days prior to the conversion.

The Asher Note #6 contains a provision limiting the number of shares of common stock into which the Asher Note #6 is convertible to 9.99% of the outstanding shares of the Company’s common stock. However, the provision in the Asher Note #6 may be waived by Asher upon 61 days’ prior notice. The Company has a right of prepayment of the Asher Note #6 anytime from the date of the Asher Note #6 until 180 days thereafter, subject to a prepayment penalty in the amount of 140% to 150% based on the date of repayment.

The fair value of the beneficial conversion feature was estimated at $39,722 and was recorded as additional paid-in capital.

During the nine month period ended 30 September 2013, the Company accrued interest expense of $19,041 (30 September 2012 - $Nil, cumulative - $19,041), of which $17,951 relates to the amortization of debt discount (30September 2012 - $Nil, cumulative - $17,951) (Note 12).

g.   On 12 August 2013, the Company issued a convertible note to Asher in the amount of $12,995, bearing interest at a rate of 8% per annum on any unpaid principal balance, unsecured, with principal and interest amounts due and payable upon maturity on 31 May 2014 (the “Asher Note #7”). Any amount of principal or interest amount not paid on 31 January 2014 (the “Default Amount #7”) shall bear interest of 22% per annum commencing on 31 January 2014 to the date the amount is paid.

Asher has the option to convert any portion of the unpaid principal balance into the Company’s common shares at any time commencing 6 months after the date of issuance up to the later of 31 January 2014 or the date of the Default Amount #6 is paid, at a conversion price equal to 45% of the market price for the common shares during the 30 trading days prior to the conversion.

The Asher Note #7 contains a provision limiting the number of shares of common stock into which the Asher Note #7 is convertible to 9.99% of the outstanding shares of the Company’s common stock. However, the provision in the Asher Note #6 may be waived by Asher upon 61 days’ prior notice. The Company has a right of prepayment of the Asher Note #7 anytime from the date of the Asher Note #7 until 180 days thereafter, subject to a prepayment penalty in the amount of 140% to 150% based on the date of repayment.

The fair value of the beneficial conversion feature was estimated at $15,883 and was recorded as additional paid-in capital.

During the nine month period ended 30 September 2013, the Company accrued interest expense of $2,472(30 September 2012 - $Nil, cumulative - $2,472), of which $2,332 related to the amortization of debt discount (30 September 2012 - $Nil, cumulative - $2,332).

h.   The following is the summary of convertible promissory notes that are issued and outstanding as at 30September 2013 and 31 December 2012:

	Principal, net of debt discount		Accrued interest		As at 30 September 2013		As at 31 December 2012 (Audited)
					$		$
Asher Note		-		-		-		5,853
Asher Note #2		-		-		-		40,041
Asher Note #3		-		-		-		22,463
Asher Note #4		-		-		-		1,373
Asher Note #5		12,142		1,320		13,462		-
Asher Note #6		17,951		1,090		19,041		-
Asher Note #7		2,332		140		2,472		-
		32,425		2,550		34,975		69,730

XML

4. Property and Equipment

9 Months Ended

Sep. 30, 2013

Notes to Financial Statements

Property and Equipment

					Net Book Value
	Cost		Accumulated Amortization		30 September 2013		31 December 2012 (Audited)
	$		$		$		$
Furniture, computer and office equipment		47,433		42,880		4,553		5,874

During the nine month period ended 30 September2013, total additions to property and equipment were $Nil (30 September2012- $Nil).

XML

12. Supplemental Disclosures with Respect to Cash Flows (Details Narrative) (USD $)	9 Months Ended		12 Months Ended			9 Months Ended			9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012 Boulder Hill Claims and Property [Member]	Sep. 30, 2013 Boulder Hill Claims [Member]	Dec. 31, 2012 Boulder Hill Claims [Member]	Sep. 30, 2013 South Idaho Silver Project [Member]	Sep. 30, 2012 South Idaho Silver Project [Member]	Dec. 31, 2012 South Idaho Silver Project [Member]	Sep. 30, 2013 Asher Note [Member]	Sep. 30, 2012 Asher [Member]
Mineral property acquisition costs and exploration expenditures				$ 3,091	$ 19,394	$ 11,245		$ 10,245
Provision for write-down of mineral property interests in the amount			33,000			36,650	0
Accrued interest expense convertible debentures	86,763	62,951							5,938	0
Amortization of debt	66,451	57,195
Default penalty	13,750	0
Amount payable to a vendor	5,373
Gain related to this settlement	45,357
settlement of liabilities	$ 150,007

XML

2. Significant Accounting Policies (Details) (USD $)	9 Months Ended
	Sep. 30, 2013
Property, Plant and Equipment [Line Items]
Comprehensive loss	$ 0
Asset retirement obligations	$ 0
Furniture, computer and office equipment [Member]
Property, Plant and Equipment [Line Items]
Amortized rate over their estimated useful lives	30.00%
Computer software [Member]
Property, Plant and Equipment [Line Items]
Amortized rate over their estimated useful lives	100.00%

XML

4. Property and Equipment (Details Narrative) (USD $)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Notes to Financial Statements
Additions to property and equipment	$ 0	$ 0

XML

8. Due to Related Parties and Related Party Transactions (Details Narrative) (USD $)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Preferred shares issued	10,545,600
Preferred shares issued, value	$ 23,200
Preferred share issued, per share	$ 0.0022
Settlement of liabilities	23,200
Former Officer [Member]
Accounts payable and accrued liabilities	3,551		3,876
Director [Member]
Accounts payable and accrued liabilities	14,112		10,817
Paid or accrued for consulting fees	13,000	1,517
Officer [Member]
Accounts payable and accrued liabilities	12,875		10,000
Paid or accrued for consulting fees	6,500	3,250
Officer 1 [Member]
Accounts payable and accrued liabilities	6,250		4,150
Director 1 [Member]
Paid or accrued for consulting fees	$ 12,500	$ 0

XML

Interim Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Statement of Financial Position [Abstract]
Common Stock Par Value	$ 0.0001	$ 0.0001
Common Stock Shares Authorized	850,000,000	850,000,000
Common Stock Shares Issued	368,871,415	83,686,238
Common Stock Shares Outstanding	368,871,415	83,686,238
Preferred Stock Par Value	$ 0.001	$ 0.001
Preferred Stock Shares Authorized	50,000,000	50,000,000
Preferred Stock Issued	47,568,500	0
Preferred Stock Outstanding	47,568,500	0

XML

9. Common Stock

9 Months Ended

Sep. 30, 2013

Notes to Financial Statements

Common Stock

Authorized

The total authorized capital consists of

·   850,000,000 common shares with par value of $0.00001

·   150,000,000 blank check preferred shares with no par value

·   50,000,000 designated class A preferred shares with par value of $0.001

Issued and outstanding

As at 30 September2013, the total issued and outstanding capital stock is 368,871,415 common shares with a par value of $0.00001 per share.

As of 30 September 2013, the total issued and outstanding series A preferred shares is 47,568,500 with a par value of $0.001.

On 30 September 2013, the Company issued 19,285,714 common shares valued at $2,700upon conversion of Asher Note #5 (Note 6).

On 16 September 2013, the Company issued 19,444,444 common shares valued at $3,500upon conversion of Asher Note #5 (Note 6).

On 12 September 2013, the Company issued 19,444,444 common shares valued at $3,500upon conversion of Asher Note #5 (Note 6).

On 20 August 2013, the Company issued 18,571,429 common shares valued at $3,900upon conversion of Asher Note #4 (Note 6).

On 6 August 2013, the Company issued 20,869,565 common shares valued at $4,800upon conversion of Asher Note #4 (Note 6).

On 1 August 2013, the Company issued 20,740,741 common shares valued at $5,600 upon conversion of Asher Note #4 (Note 6).

On 30 July 2013, the Company issued 20,740,741 common shares valued at $5,600upon conversion of Asher Note #4 (Note 6).

On 25 July 2013, the Company issued 20,740,741 common shares valued at $5,600 upon conversion of Asher Note #4 (Note 6).

On 23 July 2013, the Company issued 11,481,481 common shares valued at $3,100 upon conversion of Asher Note #4 (Note 6).

On 10 May 2013, the Company issued 2,840,939 common shares valued at $1,250 upon conversion of Asher Note #3 (Note 6).

On 8 May 2013, the Company issued 11,111,111 common shares valued at $6,000 upon conversion of Asher Note #3 (Note 6).

On 3 May 2013, the Company issued 11,666,667 common shares valued at $6,300 upon conversion of Asher Note #3 (Note 6).

On 1 May 2013, the Company issued 11,694,915 common shares valued at $6,900 upon conversion of Asher Note #3 (Note 6).

On 29 April 2013, the Company issued 11,625,000 common shares valued at $9,300 upon conversion of Asher Note #3 (Note 6).

On 25April 2013, the Company issued 11,454,545 common shares valued at $12,600upon conversion of Asher Note #3 (Note 6).

On 24 April 2013, the Company issued 2,150,000 common shares valued at $2,580 upon conversion of Asher Note #2 (Note 6).

On 23 April 2013, the Company issued 5,833,333 common shares valued at $7,000 upon conversion of Asher Note #2 (Note 6).

On 16 April 2013, the Company issued 11,766,666 common shares valued at $14,120 upon conversion of Asher Note #2 (Note 6).

On 20 March 2013, the Company issued 4,883,721 common shares valued at $2,100 upon conversion of Asher Note #2 (Note 6).

On 5 March 2013, the Company issued 4,878,049 common shares valued at $2,000 upon conversion of Asher Note #2 (Note 6).

On 15 February 2013, the Company issued 5,000,000 common shares valued at $2,700 upon conversion of Asher Note #2 (Note 6).

On 8 February 2013, the Company issued 4,354,839 common shares valued at $2,700 upon conversion of Asher Note #2 (Note 6).

On 4 February 2013, the Company issued 4,375,000 common shares valued at $2,800 upon conversion of Asher Note #2 (Note 6).

On 31 January 2013, the Company issued a total of 47,568,500 class A preferred shares valued at $104,650 ($0.0022 per share) in settlement of liabilities to officers, directors and unrelated parties (Notes 5, 8 and 12).

On 24 January 2013, the Company issued 4,285,714 common shares valued at $3,000 upon conversion of Asher Note #2 (Note 6).

On 23 January 2013, the Company amended its number of authorized shares of common stock and the related par value from 200,000,000 to 850,000,000 subsequent to the approval of the Board of Directors and the holders of a majority of the outstanding shares of the common stock and class A Preferred Convertible stock.

On 16 January 2013, the Company issued 3,088,235 common shares valued at $2,100 upon conversion of Asher Note (Note 6).

On 2 January 2013, the Company issued 2,857,143 common shares valued at $2,000 upon conversion of Asher Note (Note 6).

On 19 December 2012, the Company issued 2,739,726 common shares valued at $2,000 upon conversion of Asher Note (Note 6).

On 11 December 2012, the Company issued 2,857,143 common shares valued at $2,000 upon conversion of Asher Note (Note 6).

On 6 December 2012, the Company issued 2,784,810 common shares valued at $2,200 upon conversion of Asher Note (Note 6).

On 29 November 2012, the Company issued 2,876,712 common shares valued at $2,100 upon conversion of Asher Note (Note 6).

On 15 November 2012, the Company designated 50,000,000 of the 200,000,000 authorized preferred shares as class A preferred shares with a par value of $0.001 per share. Each class A preferred share is convertible into two common shares of the Company at the option of the holder and may be redeemed with 10 days’ notice at $0.01 per class A preferred share.

On 9 November 2012, the Company issued 2,758,621 common shares valued at $1,600 upon conversion of Asher Note (Note 6).

On 2 November 2012, the Company issued 2,833,333 common shares valued at $1,700 upon conversion of Asher Note (Note 6).

On 18 October 2012, the Company issued 2,878,788 common shares valued at $1,900 upon conversion of Asher Note (Note 6).

On 10 October 2012, the Company issued 2,784,810 common shares valued at $2,200 upon conversion of Asher Note (Note 6).

On 2 October 2012, the Company issued 2,784,810 common shares valued at $2,200 upon conversion of Asher Note (Note 6).

On 1 October 2012, the Company issued 2,151,899 common shares valued at $1,700 upon conversion of Asher Note (Note 6).

On 27 September 2012, the Company issued 2,117,647 common shares valued at $1,800 upon conversion of Asher Note (Note 6).

On 12 September 2012, the Company issued 2,100,000 common shares valued at $2,100 upon conversion of Asher Note (Note 6).

On 7 September 2012, the Company issued 2,166,667 common shares valued at $2,600 upon conversion of Asher Note (Note 6).

On 16 December 2011, the Company issued a total of 1,000,000 common shares valued at $30,000 as consideration to Boulder Hill pursuant to the BHM Purchase and BHM Assignment. The fair value is equal to the market price of the Company’s stock on the date of the transaction (Note3).

On 7 December 2011, the Company issued 1,000,000 common shares valued at $30,000 as consideration to Castle Creek pursuant to the CCS Assignment. The fair value is equal to the market price of the Company’s stock on the date of the transaction(Note 3).

On 14 February 2011, the Company issued 1,000,000 common shares upon the exercise of share purchase warrants with an exercise price of $0.10 per warrant for total proceeds of $100,000.

On 14 December 2010, the Company issued 1,500,000 common shares upon the exercise of share purchase warrants with an exercise price of $0.10 per warrant for total proceeds of $150,000.

On 30 November 2010, the Company issued 150,000 common shares upon the exercise of share purchase warrants with an exercise price of $0.10 per warrant for total proceeds of $15,000.

On 25 March 2010, the Company issued 18,750,000 units at a price of $0.10 per unit (the “Units”) for proceeds of $1,775,000, net of share issue costs of $100,000. Each Unit consists of one common share with par value $0.00001 and one share purchase warrant. Each share purchase warrant entitles the holder to purchase one common share at a price of $0.10 commencing six months from the closing date of the offering up to 25 March 2011. During the year ended 31 December 2011, 1,000,000 of the related share purchase warrants in this series were exercised. As at 30June 2013, none of the related share purchase warrants in this series remain outstanding.

On 9 March 2010, the Company issued 5,000,000 common shares valued at $1,250,000 ($0.25 per common share) pursuant to the Temasek Agreement. The fair value is equal to the market price of the Company’s stock on the date of the transaction.

During the year ended 31 December 2009, the Company issued 3,500,000 common shares valued at a $385,000 ($0.11 per common share) pursuant to the Temasek Agreement. The fair value is equal to the market price of the Company’s stock on the date of the transaction.

During the year ended 31 December 2009, the Company issued 140,000 common shares for total proceeds of $18,900 ($0.15 per common share), net of share issue costs of $2,100.

During the year ended 31 December 2009, the Company issued 5,272,333 common shares for total proceeds of $711,765 ($0.15 per common share), net of share issue costs of $79,085.

During the year ended 31 December 2008, the Company issued 2,500,000 common shares valued at $625,000 ($0.25 per common share) pursuant to the Temasek Agreement. The fair value is equal to the market price of the Company’s stock on the date of the transaction.

During the year ended 31 December 2008, the Company completed a one new for twenty old common share reverse stock split. The Company’s share transactions, including the weighted average number of common shares outstanding calculation for purposes of determining earnings per share, have been restated retroactively to reflect all of the above corporate capital transactions in these interim consolidated financial statements.

Stock options

The following stock options are outstanding as at 30 September2013 (31 December 2012 – 325,000):

	NUMBER OF OPTIONS		EXERCISE PRICE		REMAINING LIFE (YEARS)
			$
OPTIONS		250,000		0.07		0.20
OPTIONS		75,000		0.15		8.09
		325,000

During the year ended 31 December 2007, the Company adopted the Stock Incentive Plan (the “Plan”), which provides for the grant of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock, performance shares and performance units, and stock awards to officers, directors or employees of, as well as advisers and consultants to, the Company.

All stock options and rights are to vest over a period determined by the Board of Directors and expire not more than ten years from the date granted. Pursuant to the Plan, the maximum aggregate number of shares that may be issued for awards is 500,000 and the maximum aggregate number of shares that may be issued for incentive stock options is 500,000.

During the year ended 31 December 2007, the Company granted 167,500 options to officers, directors and consultants of the Company to purchase common shares of the Company at a price of $25 per common share on or before 17 April 2017 and vesting as to one-quarter of the common shares under the stock option on 17 April 2007 and one-quarter every six months thereafter in accordance with the terms and conditions of the Company’s Plan. During the year ended 31 December 2008, all of the related stock options in this series were forfeited.

During the year ended 31 December 2011, the Company granted 250,000 options at a price of $0.07 per share expiring on 10 December 2013, 75,000 options at a price of $0.07 per share expiring on 28 November 2012 and 75,000 options at a price of $0.15 per share expiring on 31 October 2021.  All of these stock options vest immediately.

The Company had no stock option activities during the ninemonth periods ended 30 September 2013 and 2012.

Warrants

As at 30 September2013, there were Nil (31 December 2012 - Nil) share purchase warrants outstanding.

The Company had no warrant activities during the six month periods ended 30 September 2013 and 2012.

XML

Interim Consolidated Statements of Cash Flows (Unaudited) (USD $)	3 Months Ended		9 Months Ended		193 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013
Cash flows used in operating activities
Net loss for the period	$ (112,900)	$ (69,168)	$ (289,778)	$ (191,914)	$ (17,377,590)
Adjustments to reconcile loss to net cash used by operating activities:
Amortization	440	899	1,321	2,697	85,057
Accrued interest	32,663	29,095	90,370	62,951	1,716,136
Consulting fees					40,200
Forgiveness of debt	(5,373)		(50,730)		(74,730)
Future income tax recovery					(2,319,871)
Gain on sale of oil and gas property					(10,745)
Mineral property acquisition					1,816,000
Stock-based compensation					3,609,399
Provision for write-down of mineral property interests			36,650		5,069,650
Changes in operating assets and liabilities
Amounts receivable			27,500
Accounts payable and accrued liabilities	72,175	25,253	115,835	59,195	639,637
Net cash used in continuing operating activities	(12,995)	(14,921)	(68,832)	(67,071)	(6,806,858)
Net cash used in discontinued operations					(186,440)
Cash flows from financing activities
Bank indebtedness			(13)
Cost of repurchase of common stock					(1,000)
Convertible promissory notes	12,995		72,995	65,000	202,995
Warrants exercised					100,000
Issuance of common stock, net of share issue costs					8,311,915
Net cash from continuing financing activities	12,995		72,982	65,000	8,613,910
Cash flows used in investing activities
Proceeds from sale of oil and gas property					46,200
Oil and gas property acquisitions					(2,846)
Oil and gas exploration					(22,609)
Mineral property acquisition			(4,150)		(52,759)
Purchase of equipment					(53,550)
Website development cost					(40,000)
Net cash used in continuing investing activities			(4,150)		(125,564)
Net cash used in discontinued operations					(1,499,422)
Increase in cash and cash equivalents		(14,921)		(2,071)
Cash and cash equivalents, beginning of period		15,044		2,194
Cash and cash equivalents, end of period		$ 123		$ 123

XML

Interim Consolidated Balance Sheets (Unaudited) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Current
Amounts receivable (Note 6)		$ 27,500
Mineral property interests (Note 3)	1,000	32,500
Property and equipment (Note 4)	4,553	5,874
Assets	5,553	65,874
Current
Bank indebtedness		13
Accounts payable and accrued liabilities (Note 5)	288,609	528,255
Current portion of convertible promissory notes (Note 6)	34,975	69,730
Liabilities current	323,584	597,998
Promissory notes (Note 7)	202,476
Liabilities	526,060	597,998
Stockholders' deficiency
Preferred stock 150,000,000 blank check preferred shares, no par value 50,000,000 designated class A preferred shares, par value $0.001 Issued and outstanding 30 September 2013 - 47,568,500 class A preferred shares, par value $0.001 31 December 2012 - Nil class A preferred shares, par value $0.001	47,569
Common stock (Note 9) Authorized 850,000,000 common shares, par value $0.00001 and 30 September 2013 - 368,871,415 common shares, par value $0.00001 31 December 2012 - 83,686,238 common shares, par value $0.00001	3,689	837
Additional paid in capital	18,805,783	18,554,809
Deficit, accumulated during the exploration stage	(19,377,548)	(19,087,770)
StockholdersEquity	(520,507)	(532,124)
LiabilitiesAndStockholdersEquity	$ 5,553	$ 65,874

XML

3. Mineral Property Interests (Details) (USD $)	9 Months Ended	12 Months Ended
	Sep. 30, 2013	Dec. 31, 2012
Exploration and evaluation properties, Beginning balance	$ 32,500	$ 65,500
Exploration and evaluation additions	5,150
Exploration and evaluation write-down	(36,650)	(33,000)
Exploration and evaluation properties, Ending balance	1,000	32,500
South Idaho Silver Project [Member]
Exploration and evaluation properties, Beginning balance	32,500	32,500
Exploration and evaluation additions	4,150
Exploration and evaluation write-down	(36,650)
Exploration and evaluation properties, Ending balance		32,500
Boulder Hill Claims [Member]
Exploration and evaluation properties, Beginning balance		15,000
Exploration and evaluation additions
Exploration and evaluation write-down		(15,000)
Exploration and evaluation properties, Ending balance
Boulder Hill Project [Member]
Exploration and evaluation properties, Beginning balance		18,000
Exploration and evaluation additions
Exploration and evaluation write-down		(18,000)
Exploration and evaluation properties, Ending balance
Uranium Claim Prospect [Member]
Exploration and evaluation properties, Beginning balance
Exploration and evaluation additions	1,000
Exploration and evaluation write-down
Exploration and evaluation properties, Ending balance	$ 1,000

XML

4. Property and Equipment (Tables)

9 Months Ended

Sep. 30, 2013

Property And Equipment Tables

Furniture, computer and office equipment

					Net Book Value
	Cost		Accumulated Amortization		30 September 2013		31 December 2012 (Audited)
	$		$		$		$
Furniture, computer and office equipment		47,433		42,880		4,553		5,874

XML

9. Common Stock (Details Narrative) (USD $)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Common Stock Par Value	$ 0.0001		$ 0.0001
Common Stock Shares Issued	368,871,415		83,686,238
Common Stock Shares Outstanding	368,871,415		83,686,238
Preferred Stock Par Value	$ 0.001		$ 0.001
Preferred Stock Issued	47,568,500		0
Preferred Stock Outstanding	47,568,500		0
Stock option activities	$ 0	$ 0
Share purchase warrants outstanding	0		0
Warrant [Member]
Stock option activities	0	0
Asher Note Five [Member]
Common share issued to Asher	19,285,714
Conversion value of share issued	$ 2,700

XML

6. Convertible Promissory Notes (Details Narrative) (USD $)	9 Months Ended		193 Months Ended	9 Months Ended		193 Months Ended	9 Months Ended		193 Months Ended	9 Months Ended		193 Months Ended	9 Months Ended		193 Months Ended	9 Months Ended		181 Months Ended	9 Months Ended		193 Months Ended		9 Months Ended		193 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2013 Asher [Member]	Sep. 30, 2012 Asher [Member]	Sep. 30, 2013 Asher [Member]	Sep. 30, 2013 Asher Note 2 [Member]	Sep. 30, 2012 Asher Note 2 [Member]	Sep. 30, 2013 Asher Note 2 [Member]	Sep. 30, 2013 Asher Note 3 [Member]	Sep. 30, 2012 Asher Note 3 [Member]	Sep. 30, 2013 Asher Note 3 [Member]	Sep. 30, 2013 Asher Note Four	Sep. 30, 2012 Asher Note Four	Sep. 30, 2013 Asher Note Four	Sep. 30, 2013 Asher Note Five [Member]	Sep. 30, 2012 Asher Note Five [Member]	Sep. 30, 2012 Asher Note Five [Member]	Sep. 30, 2013 Asher Note Six [Member]	Sep. 30, 2012 Asher Note Six [Member]	Sep. 30, 2013 Asher Note Six [Member]	Dec. 31, 2012 Asher Note Six [Member]	Sep. 30, 2013 Asher Note 7 [Member]	Sep. 30, 2012 Asher Note 7 [Member]	Sep. 30, 2013 Asher Note 7 [Member]	Sep. 30, 2013 Asher Note [Member]
Accrued interest expense	$ 8	$ 30,089	$ 30,416	$ 1,761	$ 0	$ 1,761	$ 1,625	$ 20,936	$ 31,321	$ 20,847	$ 11,926	$ 42,232	$ 19,608	$ 0	$ 20,981	$ 23,162	$ 0	$ 23,162	$ 19,041	$ 0	$ 19,041		$ 2,472	$ 0	$ 2,472
Amortization of debt discount	66,451	26,668	27,155				0	19,300	27,155	6,291	11,227	26,422	18,035	0	19,330	21,842	0	21,842	17,951	0	17,951		2,332	0	2,332
Common share issued	5,945,378		5,945,378				47,527,322		47,527,322	60,393,147		60,393,147	113,144,698		113,144,698	58,174,602										42,182,653
Conversion value of share issued	4,100		4,100				3,900		3,900	42,350		42,350	28,600		28,600	9,700										34,900
Accrued interest	1,500	1,761	1,500				37,500	2,666	37,500	41,250	1,100	41,250	2,750	551	2,750	17,800
Write-down of accrued interest							2,666	0	2,666	960	0	960	551	0	551
Accrued interest expense penalties										13,750	0	13,750
Reduced principal amount																						$ 2,600

XML

7. Promissory Notes (Details Narrative) (USD $)	9 Months Ended		12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Promissory Notes Details Narrative
Long term promissory note	$ 68,100
Accrued interest	1,376	0	0
Promissory notes principal	201,100		0
Cumulative accrued interest		$ 1,376

XML

8. Due to Related Parties and Related Party Transactions

9 Months Ended

Sep. 30, 2013

Notes to Financial Statements

Due to Related Parties and Related Party Transactions

Included in accounts payable and accrued liabilities as at 30 September 2013 is an amount due to a former officer of the Company of $3,551 (31 December 2012 – $3,876). These amounts are non-interest bearing, unsecured and have no fixed terms of repayment (Note 5).

Included in accounts payable and accrued liabilities as at 30 September 2013 is an amount due to a director of the Company of $14,112 (31 December 2012 – $10,817). This amount is non-interest bearing, unsecured and have no fixed terms of repayment (Note 5).

Included in accounts payable and accrued liabilities as at 30 September 2013 is an amount due to an officer of the Company of $12,875 (31 December 2012 – $10,000). This amount is non-interest bearing, unsecured and have no fixed terms of repayment (Note 5).

Included in accounts payable and accrued liabilities as at 30 September 2013 is an amount due to an officer of the Company of $6,250 (31 December 2012 – $4,150). This amount is non-interest bearing, unsecured and have no fixed terms of repayment (Note 5).

During the ninemonth period ended 30 September 2013, the Company paid or accrued $6,500(30 September 2012 – $3,250) for consulting fees to an officer of the Company.

During the ninemonth period ended 30 September 2013, the Company paid or accrued $13,000 (30 September2012 – $1,517) for consulting fees to a director of the Company.

During the ninemonth period ended 30 September 2013, the Company paid or accrued $12,500 (30 September 2012 - $Nil) for consulting fees to a director of the Company.

During the nine month period ended 30 September 2013, the Company issued a total of 10,545,600 class A preferred shares valued at $23,200 ($0.0022 per share) for the settlement of liabilities totaling $23,200 with officers and directors of the Company (Notes 9 and 12).

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3. Mineral Property Interests (Details Narrative) (USD $)	6 Months Ended	9 Months Ended	193 Months Ended			12 Months Ended		12 Months Ended
	Jun. 30, 2013 South Idaho Silver Project [Member]	Sep. 30, 2013 South Idaho Silver Project [Member]	Sep. 30, 2013 South Idaho Silver Project [Member]	Sep. 30, 2013 South Idaho Silver Project [Member]	Dec. 31, 2012 South Idaho Silver Project [Member]	Dec. 31, 2012 Boulder Hill Project [Member]	Sep. 30, 2013 Boulder Hill Project [Member]	Dec. 31, 2012 Boulder Hill Claims [Member]
Accounts payable and accrued liabilities				$ 11,245	$ 10,245	$ 19,394	$ 3,091
Provision for write-down of mineral property interests in the amount	$ 0	$ 36,650	$ 36,650			$ 18,000		$ 15,000

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13. Fair Value of Financial Instruments (Details Narrative) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Carrying amount of long-term debt and other financing	$ 202,476	$ 0
Fair value of the beneficial conversion feature estimated	79,516	81,077
Working capital deficit	323,584	570,498
Level 1 [Member]
Fair value of the beneficial conversion feature estimated	79,516	81,077
Level 2 [Member]
Fair value of the beneficial conversion feature estimated	$ 0	$ 0

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11. Geographic Areas

9 Months Ended

Sep. 30, 2013

Notes to Financial Statements

Geographic Areas

Prior to the operations of acquisition and exploration of mineral properties, the Company’s areas of operations were primarily in the South America. Since the commencement of acquisition and exploration of mineral properties, during the year ended 31 December 2006, the Company’s principal mineral property activities have been in Finland. During the year ended 31 December 2008, the Company re-focused its acquisition and exploration of mineral properties operations to Peru. During the year ended 31 December 2011, the Company re-focused its activities to Colombia and the United States. During the nine month period ended 30 September 2013, the Company does not have any material activities outside of the United States. As at 30 September 2013, the Company does not have any material assets outside of the United States.

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7. Promissory Notes

9 Months Ended

Sep. 30, 2013

Promissory Notes

Promissory Notes Text Block

On 30 June 2013, the Company entered into agreement with various vendors to convert $90,000 of the amounts payable to the vendors to long-term promissory notes. The promissory notes have a term of two years, are unsecured, and bear interest of 5% per annum that is payable quarterlybeginning 30 September 2013 (Note 5).

On 20 August 2013, the Company entered into agreement witha vendorto convert $43,000 of the amount payable to the vendor to a long-term promissory note. The promissory notehas a term of two years, is unsecured, and bears interest of 5% per annum that is payable quarterly beginning 31 December 2013 (Note5).

On 30 September 2013, the Company entered into agreement with various vendors to convert $68,100 of the amounts payable to the vendors to long-term promissory notes. The promissory notes have a term of two years, are unsecured, and bear interest of 5% per annum that is payable quarterly beginning 31 March 2014(Note 7).

During the nine month period ended 30 September 2013, the Company accrued interest of $1,376 (30September 2012 - $Nil, cumulative - $1,376). As at 30 September 2013, the balance of promissory notes consists of principal of $201,100 (31 December 2012 - $Nil) and accrued interest of $1,376 (31 December 2012 - $Nil)(Note 12).

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2. Significant Accounting Policies

9 Months Ended

Sep. 30, 2013

Notes to Financial Statements

Significant Accounting Policies

The following is a summary of significant accounting policies used in the preparation of these interim consolidated financial statements.

Principles of consolidation

All inter-company balances and transactions have been eliminated in these interim consolidated financial statements.

Cash and cash equivalents

The Company considers all highly liquid instruments with a maturity of three months or less at the time of issuance to be cash equivalents.

Property and equipment

Furniture, computer equipment, office equipment and computer software are carried at cost and are amortized over their estimated useful lives at rates as follows:

Furniture, computer and office equipment	30%
Computer software	100%

The property and equipment is written down to its net realizable value if it is determined that its carrying value exceeds estimated future benefits to the Company.

Mineral property costs

Mineral property acquisition costs are initially capitalized as tangible assets when purchased. At the end of each fiscal quarter, the Company assesses the carrying costs for impairment. If proven and probable reserves are established for a property and it has been determined that a mineral property can be economically developed, costs will be amortized using the units-of-production method over the estimated life of the probable reserve.

Mineral property exploration costs are expensed as incurred.

Estimated future removal and site restoration costs, when determinable, are provided over the life of proven reserves on a units-of-production basis. Costs, which include production equipment removal and environmental remediation, are estimated each period by management based on current regulations, actual expenses incurred, and technology and industry standards. Any charge is included in exploration expense or the provision for depletion and depreciation during the period and the actual restoration expenditures are charged to the accumulated provision amounts as incurred.

As of the date of these interim consolidated financial statements, the Company has not established any proven or probable reserves on its mineral properties and incurred only acquisition and exploration costs.

Although the Company has taken steps to verify title to mineral properties in which it has an interest, according to the usual industry standards for the stage of exploration of such properties, these procedures do not guarantee the Company’s title. Such properties may be subject to prior agreements or transfers and title may be affected by undetected defects.

Segments of an enterprise and related information

ASC 280, “Segment Reporting” establishes guidance for the way that public companies report information about operating segments in annual financial statements and requires reporting of selected information about operating segments in financial statements issued to the public. It also establishes standards for disclosures regarding products and services, geographic areas and major customers. ASC 280 defines operating segments as components of a company about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance.

Environmental costs

Environmental expenditures that are related to current operations are charged to operations or capitalized as appropriate. Expenditures that relate to an existing condition caused by past operations, and which do not contribute to current or future revenue generation, are charged to operations. Liabilities are recorded when environmental assessments and/or remedial efforts are probable, and the cost can be reasonably estimated. Generally, the timing of these accruals coincides with the earlier of completion of a feasibility study or the Company’s commitments to a plan of action based on the then known facts.

Comparative figures

Certain comparative figures have been adjusted to conform to the current period’s presentation.

Comprehensive loss

ASC 220, “Comprehensive Income” establishes standards for the reporting and display of comprehensive loss and its components in the financial statements. As at 30 September 2013, the Company did not have items that represent a comprehensive loss and, therefore, has not included a schedule of comprehensive loss in the interim consolidated financial statements.

Foreign currency translation

The Company’s functional and reporting currency is U.S. dollars. The interim consolidated financial statements of the Company are translated to U.S. dollars in accordance with ASC 830, “Foreign Currency Matters.” Monetary assets and liabilities denominated in foreign currencies are translated using the exchange rate prevailing at the balance sheet date. Gains and losses arising on translation or settlement of foreign currency denominated transactions or balances are included in the determination of income. The Company has not, to the date of these interim consolidated financial statements, entered into derivative instruments to offset the impact of foreign currency fluctuations.

Stock-based compensation

Effective 1 January 2006, the Company adopted the provisions of ASC 718, “Compensation – Stock Compensation”, which establishes accounting for equity instruments exchanged for employee services. Under the provisions of ASC 718, stock-based compensation cost is measured at the grant date, based on the calculated fair value of the award, and is recognized as an expense over the employees’ requisite service period (generally the vesting period of the equity grant). The Company adopted ASC 718 using the modified prospective method, which requires the Company to record compensation expense over the vesting period for all awards granted after the date of adoption, and for the unvested portion of previously granted awards that remain outstanding at the date of adoption. Accordingly, the financial statements for the periods prior to 1 January 2006 have not been restated to reflect the fair value method of expensing stock-based compensation. The adoption of ASC 718 did not change the way the Company accounts for stock-based payments to non-employees, with guidance provided by ASC 505-50, “Equity-Based Payments to Non-Employees”.

Long-lived assets impairment

Long-term assets of the Company are reviewed for impairment whenever events or circumstances indicate that the carrying amount of assets may not be recoverable, pursuant to guidance established in ASC 360-10-35-15, “Impairment or Disposal of Long-Lived Assets”. Management considers assets to be impaired if the carrying value exceeds the future projected cash flows from related operations (undiscounted and without interest charges). If impairment is deemed to exist, the assets will be written down to fair value. Fair value is generally determined using a discounted cash flow analysis.

Financial instruments

The carrying value of accounts payable and convertible promissory notes approximates their fair value because of the short maturity of these instruments. The Company’s financial risk is the risk that arises from fluctuations in foreign exchange rates and the degree of volatility of these rates. Currently, the Company does not use derivative instruments to reduce its exposure to foreign currency risk.

Basic and diluted loss per share

The Company computes net loss per share in accordance with ASC 260, “Earnings per Share”. ASC 260 requires presentation of both basic and diluted earnings per share (“EPS”) on the face of the income statement. Basic EPS is computed by dividing net loss available to common stockholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excluded all dilutive potential shares if their effect was anti-dilutive.

Income taxes

Deferred income taxes are reported for timing differences between items of income or expense reported in the financial statements and those reported for income tax purposes in accordance with ASC 740, “Income Taxes”, which requires the use of the asset/liability method of accounting for income taxes. Deferred income taxes and tax benefits are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and for tax losses and credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Company provides for deferred taxes for the estimated future tax effects attributable to temporary differences and carry-forwards when realization is more likely than not.

Convertible debt

The Company has adopted ASC 470-20, “Debt with Conversion and Other Options” and applies this guidance retrospectively to all periods presented upon those fiscal years. ASC 470-20 requires the liability and equity components to be separately accounted for in a manner that will reflect the entity’s nonconvertible debt borrowing rate. The Company will allocate a portion of the proceeds received from the issuance of convertible notes between a liability and equity component by determining the fair value of the liability component using the Company’s nonconvertible debt borrowing rate. The difference between the proceeds of the notes and the fair value of the liability component will be recorded as a discount on the debt with a corresponding offset to paid-in capital. The resulting discount will be accreted by recording additional non-cash interest expense over the expected life of the convertible notes using the effective interest rate method.

Asset retirement obligations

The Company has adopted ASC 410, “Assets Retirement and Environmental Obligations”, which requires that the fair value of a liability for an asset retirement obligation be recognized in the period in which it is incurred. ASC 410 requires the Company to record a liability for the present value of the estimated site restoration costs with a corresponding increase to the carrying amount of the related long-lived assets. The liability will be accreted and the asset will be depreciated over the life of the related assets. Adjustments for changes resulting from the passage of time and changes to either the timing or amount of the original present value estimate underlying the obligation will be made. As at 30 September 2013, the Company did not have any asset retirement obligations.

Use of estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the period. Actual results may differ from those estimates.

Recent Accounting Pronouncements

In April 2013, FASB issued Accounting Standards Update (“ASU”) No. 2013-07, “Presentation of Financial Statements”. The objective of this Update is to clarify when an entity should apply the liquidation basis of accounting and to provide principles for the measurement of assets and liabilities under the liquidation basis of accounting, as well as any required disclosures. ASU No. 2013-07 will be effective for fiscal years, and interim periods within those years beginning after 15 December 2013, with early adoption permitted. The Company does not expect the adoption of this update will have a material effect on its interim consolidated financial statements.

In March 2013, FASB issued ASU No. 2013-05, “Foreign Currency Matters”. The amendments in this update resolve the diversity in practice about whether Subtopic 810-10, “Consolidation – Overall”, or Subtopic 830-30, “Foreign Currency Matters - Translation of Financial Statements”, applies to the release of the cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business (other than a sale of in substance real estate or conveyance of oil and gas mineral rights) within a foreign entity. In addition, the amendments in this update resolve the diversity in practice for the treatment of business combinations achieved in stages (sometimes also referred to as step acquisitions) involving a foreign entity. ASU No. 2013-05 will be effective for fiscal years, and interim periods within those years, beginning after 15 December 2013, with early adoption permitted, and should be applied retrospectively to all prior periods presented. The Company does not expect the adoption of this update will have a material effect on its interim consolidated financial statements.

In February 2013, FASB issued ASU No. 2013-04, “Liabilities”. This update requires an entity to measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting date, as the sum of: (1) the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and (2) any additional amount the reporting entity expects to pay on behalf of its co-obligors. ASU No. 2013-04 will be effective for fiscal years, and interim periods within those years, beginning after 15 December 2013, with early adoption permitted. The Company does not expect the adoption of this update will have a material effect on its interim consolidated financial statements.

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5. Accounts Payable and Accrued Liabilities (Details Narrative) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Deconsolidated accounts payable	$ 68,100
Former Officer [Member]
Accounts payable and accrued liabilities	3,551	3,876
Director [Member]
Accounts payable and accrued liabilities	14,112	10,817
Officer [Member]
Accounts payable and accrued liabilities	12,875	10,000
Officer 1 [Member]
Accounts payable and accrued liabilities	6,250	4,150
Mineral Property Acquisition Costs [Member]
Accounts payable and accrued liabilities	$ 3,091	$ 19,394

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14. Subsequent Events

9 Months Ended

Sep. 30, 2013

Notes to Financial Statements

Subsequent Events

During the period from the nine month period ended 30 September 2013 to the date the interim consolidated financial statements there wereno subsequent events.

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10. Commitments and Contingencies

9 Months Ended

Sep. 30, 2013

Notes to Financial Statements

Commitments and Contingencies

a.   Subsequent to the nine month period ended 30 September 2013, the Company became in default with regards to certain obligations related to the South Idaho Property and is in the process of renegotiating the terms with Castle Creek (Notes 3 and 14).

b.   As at 30 September 2013, the Company is in default with regards to certain obligations related to the Boulder Hill Claims and is in the process of renegotiating the terms with Boulder Hill (Note 3).

c.   As at 30 September 2013, the Company is in default with regards to certain obligations related to the Boulder Hill Project and is in the process of renegotiating the terms with James E (Note 3).

d.   In November 2011, the Company entered into a contract, commencing 1 December 2011, with each of an unrelated individual and an unrelated company, to provide consulting services, subject to the supervision of the Company’s Chief Executive Officer, related to the exploration and development of mineral properties, operational activities and international business operations for a monthly payment of $2,500 each.

e.   The Company is committed to making repayments related to the convertible promissory notes payable to Asher (Note 6).

f.   The Company is committed to making repayments related to the promissory notespayable to various vendors (Note 7).

g.   During the nine month period ended 30 September 2013, the Company entered into a memorandum of understanding (the “MOU”) with an unrelated party to enter into a definitive agreement within 180 days for the Company to earn a fifty percent interest in the Nile Mine project. The Company has not entered into a final and definitive agreement at the time.

h.   On 27 July 2013, the Company entered into a contract with an unrelated company to provide consulting services and introductions in order to secure further funding for the Company. The consultant is entitled to 10% of the gross funding received in relation to the contract.

i.   On 20 August 2013, the Company wrote down $5,373 of the amount payable to a vendor.  Management does not consider this amount to be payable; however, there is no assurance that a formal claim will not be made against the Company for some or all of these amounts in the future (Notes 5 and 12).

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3. Mineral Property Interests (Tables)

9 Months Ended

Sep. 30, 2013

Mineral Property Interests Tables

Description of exploration and evaluation properties

The Company’s exploration and evaluation properties expenditures for the nine month period ended 30 September 2013 and for the year ended 31 December 2012 are as follows:

	SOUTH IDAHO SILVER PROJECT			BOULDER HILL CLAIMS			BOULDER HILL PROJECT			URANIUM CLAIM PROSPECT		TOTAL
	$			$			$			$		$
AS AT 31 DECEMBER 2011		32,500			15,000			18,000			-		65,500
ADDITIONS		-			-			-			-
WRITE-DOWN		-			(15,000	)		(18,000	)		-		(33,000	)
AS AT 31 DECEMBER 2012		32,500			-			-			-		32,500
ADDITIONS		4,150			-			-			1,000		5,150
PROVISION FOR WRITE-DOWN		(36,650	)		-			-			-		(36,650	)
AS AT 30 SEPTEMBER 2013		-			-			-			1,000		1,000

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2. Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2013

Significant Accounting Policies Policies

Principles of consolidation

All inter-company balances and transactions have been eliminated in these interim consolidated financial statements.

Cash and cash equivalents

The Company considers all highly liquid instruments with a maturity of three months or less at the time of issuance to be cash equivalents.

Property and equipment

Furniture, computer equipment, office equipment and computer software are carried at cost and are amortized over their estimated useful lives at rates as follows:

Furniture, computer and office equipment	30%
Computer software	100%

The property and equipment is written down to its net realizable value if it is determined that its carrying value exceeds estimated future benefits to the Company.

Mineral property costs

Mineral property acquisition costs are initially capitalized as tangible assets when purchased. At the end of each fiscal quarter, the Company assesses the carrying costs for impairment. If proven and probable reserves are established for a property and it has been determined that a mineral property can be economically developed, costs will be amortized using the units-of-production method over the estimated life of the probable reserve.

Mineral property exploration costs are expensed as incurred.

Estimated future removal and site restoration costs, when determinable, are provided over the life of proven reserves on a units-of-production basis. Costs, which include production equipment removal and environmental remediation, are estimated each period by management based on current regulations, actual expenses incurred, and technology and industry standards. Any charge is included in exploration expense or the provision for depletion and depreciation during the period and the actual restoration expenditures are charged to the accumulated provision amounts as incurred.

As of the date of these interim consolidated financial statements, the Company has not established any proven or probable reserves on its mineral properties and incurred only acquisition and exploration costs.

Although the Company has taken steps to verify title to mineral properties in which it has an interest, according to the usual industry standards for the stage of exploration of such properties, these procedures do not guarantee the Company’s title. Such properties may be subject to prior agreements or transfers and title may be affected by undetected defects.

Segments of an enterprise and related information

ASC 280, “Segment Reporting” establishes guidance for the way that public companies report information about operating segments in annual financial statements and requires reporting of selected information about operating segments in financial statements issued to the public. It also establishes standards for disclosures regarding products and services, geographic areas and major customers. ASC 280 defines operating segments as components of a company about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance.

Segments of an enterprise and related information

ASC 280, “Segment Reporting” establishes guidance for the way that public companies report information about operating segments in annual financial statements and requires reporting of selected information about operating segments in financial statements issued to the public. It also establishes standards for disclosures regarding products and services, geographic areas and major customers. ASC 280 defines operating segments as components of a company about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance.

Environmental costs

Environmental expenditures that are related to current operations are charged to operations or capitalized as appropriate. Expenditures that relate to an existing condition caused by past operations, and which do not contribute to current or future revenue generation, are charged to operations. Liabilities are recorded when environmental assessments and/or remedial efforts are probable, and the cost can be reasonably estimated. Generally, the timing of these accruals coincides with the earlier of completion of a feasibility study or the Company’s commitments to a plan of action based on the then known facts.

Comparative figures

Certain comparative figures have been adjusted to conform to the current period’s presentation.

Comprehensive loss

ASC 220, “Comprehensive Income” establishes standards for the reporting and display of comprehensive loss and its components in the financial statements. As at 30 September 2013, the Company did not have items that represent a comprehensive loss and, therefore, has not included a schedule of comprehensive loss in the interim consolidated financial statements.

Foreign currency translation

The Company’s functional and reporting currency is U.S. dollars. The interim consolidated financial statements of the Company are translated to U.S. dollars in accordance with ASC 830, “Foreign Currency Matters.” Monetary assets and liabilities denominated in foreign currencies are translated using the exchange rate prevailing at the balance sheet date. Gains and losses arising on translation or settlement of foreign currency denominated transactions or balances are included in the determination of income. The Company has not, to the date of these interim consolidated financial statements, entered into derivative instruments to offset the impact of foreign currency fluctuations.

Stock-based compensation

Effective 1 January 2006, the Company adopted the provisions of ASC 718, “Compensation – Stock Compensation”, which establishes accounting for equity instruments exchanged for employee services. Under the provisions of ASC 718, stock-based compensation cost is measured at the grant date, based on the calculated fair value of the award, and is recognized as an expense over the employees’ requisite service period (generally the vesting period of the equity grant). The Company adopted ASC 718 using the modified prospective method, which requires the Company to record compensation expense over the vesting period for all awards granted after the date of adoption, and for the unvested portion of previously granted awards that remain outstanding at the date of adoption. Accordingly, the financial statements for the periods prior to 1 January 2006 have not been restated to reflect the fair value method of expensing stock-based compensation. The adoption of ASC 718 did not change the way the Company accounts for stock-based payments to non-employees, with guidance provided by ASC 505-50, “Equity-Based Payments to Non-Employees”.

Basic and diluted net loss per share

The Company computes net loss per share in accordance with ASC 260, “Earnings per Share”. ASC 260 requires presentation of both basic and diluted earnings per share (“EPS”) on the face of the income statement. Basic EPS is computed by dividing net loss available to common stockholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excluded all dilutive potential shares if their effect was anti-dilutive.

Income taxes

Deferred income taxes are reported for timing differences between items of income or expense reported in the financial statements and those reported for income tax purposes in accordance with ASC 740, “Income Taxes”, which requires the use of the asset/liability method of accounting for income taxes. Deferred income taxes and tax benefits are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and for tax losses and credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Company provides for deferred taxes for the estimated future tax effects attributable to temporary differences and carry-forwards when realization is more likely than not.

Long-lived assets impairment

Long-term assets of the Company are reviewed for impairment whenever events or circumstances indicate that the carrying amount of assets may not be recoverable, pursuant to guidance established in ASC 360-10-35-15, “Impairment or Disposal of Long-Lived Assets”. Management considers assets to be impaired if the carrying value exceeds the future projected cash flows from related operations (undiscounted and without interest charges). If impairment is deemed to exist, the assets will be written down to fair value. Fair value is generally determined using a discounted cash flow analysis.

Asset retirement obligations

The Company has adopted ASC 410, “Assets Retirement and Environmental Obligations”, which requires that the fair value of a liability for an asset retirement obligation be recognized in the period in which it is incurred. ASC 410 requires the Company to record a liability for the present value of the estimated site restoration costs with a corresponding increase to the carrying amount of the related long-lived assets. The liability will be accreted and the asset will be depreciated over the life of the related assets. Adjustments for changes resulting from the passage of time and changes to either the timing or amount of the original present value estimate underlying the obligation will be made. As at 30 September 2013, the Company did not have any asset retirement obligations.

Financial instruments

The carrying value of accounts payable and convertible promissory notes approximates their fair value because of the short maturity of these instruments. The Company’s financial risk is the risk that arises from fluctuations in foreign exchange rates and the degree of volatility of these rates. Currently, the Company does not use derivative instruments to reduce its exposure to foreign currency risk.

Convertible debt

The Company has adopted ASC 470-20, “Debt with Conversion and Other Options” and applies this guidance retrospectively to all periods presented upon those fiscal years. ASC 470-20 requires the liability and equity components to be separately accounted for in a manner that will reflect the entity’s nonconvertible debt borrowing rate. The Company will allocate a portion of the proceeds received from the issuance of convertible notes between a liability and equity component by determining the fair value of the liability component using the Company’s nonconvertible debt borrowing rate. The difference between the proceeds of the notes and the fair value of the liability component will be recorded as a discount on the debt with a corresponding offset to paid-in capital. The resulting discount will be accreted by recording additional non-cash interest expense over the expected life of the convertible notes using the effective interest rate method.

Use of estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the period. Actual results may differ from those estimates.

Recent Accounting Pronouncements

In April 2013, FASB issued Accounting Standards Update (“ASU”) No. 2013-07, “Presentation of Financial Statements”. The objective of this Update is to clarify when an entity should apply the liquidation basis of accounting and to provide principles for the measurement of assets and liabilities under the liquidation basis of accounting, as well as any required disclosures. ASU No. 2013-07 will be effective for fiscal years, and interim periods within those years beginning after 15 December 2013, with early adoption permitted. The Company does not expect the adoption of this update will have a material effect on its interim consolidated financial statements.

In March 2013, FASB issued ASU No. 2013-05, “Foreign Currency Matters”. The amendments in this update resolve the diversity in practice about whether Subtopic 810-10, “Consolidation – Overall”, or Subtopic 830-30, “Foreign Currency Matters - Translation of Financial Statements”, applies to the release of the cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business (other than a sale of in substance real estate or conveyance of oil and gas mineral rights) within a foreign entity. In addition, the amendments in this update resolve the diversity in practice for the treatment of business combinations achieved in stages (sometimes also referred to as step acquisitions) involving a foreign entity. ASU No. 2013-05 will be effective for fiscal years, and interim periods within those years, beginning after 15 December 2013, with early adoption permitted, and should be applied retrospectively to all prior periods presented. The Company does not expect the adoption of this update will have a material effect on its interim consolidated financial statements.

In February 2013, FASB issued ASU No. 2013-04, “Liabilities”. This update requires an entity to measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting date, as the sum of: (1) the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and (2) any additional amount the reporting entity expects to pay on behalf of its co-obligors. ASU No. 2013-04 will be effective for fiscal years, and interim periods within those years, beginning after 15 December 2013, with early adoption permitted. The Company does not expect the adoption of this update will have a material effect on its interim consolidated financial statements.

XML

Document and Entity Information	9 Months Ended
	Sep. 30, 2013
Document And Entity Information
Entity Registrant Name	FIRST COLOMBIA GOLD CORP.
Entity Central Index Key	0001045929
Document Type	10-Q
Document Period End Date	Sep. 30, 2013
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding	368,871,415
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2013

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2. Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2013

Significant Accounting Policies Tables

Estimated useful lives of Furniture, computer equipment, office equipment and computer software

Furniture, computer equipment, office equipment and computer software are carried at cost and are amortized over their estimated useful lives at rates as follows:

Furniture, computer and office equipment	30%
Computer software	100%