Income Taxes

The provision (benefit) for income taxes from continued operations for the years ended December 31, 2013, 2012 and 2011 consist of the following:



	2013			2012			2011
Current:
Federal	$	—		$	—		$	—

Deferred:
Federal	—			—			(76,081		)

Income taxes provision	$	—		$	—		$	(76,081	)

Federal statutory rate	(34.0		)%	(34.0		)%	(34.0		)%
Change in valuation allowance	32.0		%	33.9		%	32.9		%
Other	2.0		%	0.1		%	0.4		%
	—		%	—		%	(0.7		)%

Deferred income taxes at December 31, 2013 and 2012 consisted of the following:



	December 31, 2013			December 31, 2012
Asset retirement obligation	$	997,035		$	609,905
Mineral rights and properties, plant, and equipment	(846,679		)	(695,728		)
Mining exploration, development, claims, and permit costs	7,812,828			5,576,631
Derivatives - change in fair value	30,600			(487,274		)
Stock-based compensation	1,720,564			2,261,053
Net operating loss carryforward	45,411,753			40,925,397
Transaction costs	1,392,079			1,362,388
Other	194,145			48,048
Valuation allowance	(56,712,325		)	(49,600,420		)
Total net deferred tax assets	$	—		$	—

At December 31, 2013, the Company had federal net operating losses of approximately $133,600,000 which will begin to expire in 2023 and could be subject to certain limitations under section 382 of the Internal Revenue Code.

The Company has provided a valuation allowance at December 31, 2013 and 2012 of $56,712,325 and $49,600,420 for its net deferred tax assets as it cannot conclude it is more likely than not that they will be realized. The valuation allowance increased by $7,111,905, $10,467,065 and $3,897,000 in 2013, 2012 and 2011, respectively.

As of December 31, 2013 and 2012, the Company did not have any unrecognized tax benefits. The Company's policy is to recognize interest and penalties related to income tax matters in income tax expense. The Company currently has no federal or state tax examinations in progress nor has it had any federal or state tax examinations since its inception. The Company is subject to U.S. federal and state income tax examination for tax years 2009 and forward.