INCOME TAXES PAYABLE (Tables)

12 Months Ended

Dec. 31, 2013

Income Taxes Payable Tables

Summary of effective income tax rate

The effective income tax rate for years ended December 31, 2013 and December 31, 2012 differs from the U.S. Federal statutory income tax rate due to the following:

	December 31,			December 31,
	2013			2012
US
Federal statutory income tax rate		35.00	%		35.00	%
State income taxes (average), net of federal benefit		-			-
Permanent Differences		(0.14	%)		(0.21	%)
Foreign Rate Difference		(14.66	%)		(21.25	%)
Valuation allowance		(20.20	%)		(13.54	%)
Net income tax provision (benefit)		-			-

Canada
Federal statutory income tax rate	15.00	%	15.00	%
Provincial income taxes	12.00	%	12.00	%
Valuation allowance	(27.00	%)	(27.00	%)
Net income tax provision (benefit)	-		-

Cumulative components of the deferred tax assets and liabilities

The cumulative components of the deferred tax assets and liabilities as of December 31, 2013 and as of December 31, 2012 are as follows:

	December 31,		December 31,
US	2013		2012
US Operating loss carry forward	$	1,065,523	$	703,074
US Capital Loss carry forward		407,869		407,869
Non-Qualified Stock Options		61,227		61,227
Canadian Operating loss carry forward		907,909		809,262
Resources pools Canada – available for expense		686,011		646,987
Resource Assets capitalized		426,094		401,856
Total	$	3,554,633	$	3,030,275

Valuation Allowance	$	(3,483,553	)	$	(2,994,618	)
Defferred Tax Assets (Net of Allowance)		71,079			35,658
Net deferred tax liabilities Accumulated Depletion		(71,079	)		(35,658	)
Total		(71,079	)		(35,658	)
Net Deferred asset/liabilities	$	-		$	-