Investments

As consideration of certain area of interest obligations of NV Gold Corporation (“NVX”) that apply to the Roberts Gold project, the Company was issued 250,000 common shares of NVX and 250,000 common share purchase warrants (the “NVX Warrants”) on October 26, 2010. The NVX Warrants entitle the Company to purchase one common share of NVX at an exercise price of $0.40 until October 26, 2012. If the volume weighted average price of the common shares of NVX exceeds $0.60 for twenty consecutive trading days, NVX may notify the Company in writing that the NVX Warrants will expire 15 trading days from receipt of such notice unless exercised by the Company before such date.

The NVX Warrants are considered derivatives. The NVX Warrants will be revalued each reporting period with gains or losses recorded in the Statement of Operations. The following Black-Scholes valuation assumptions were used on June 30, 2012: expected life of 0.3 years; volatility of 151%; no dividend yield; and a risk free interest rate of 1.6%. The following Black-Scholes valuation assumptions were used on December 31, 2011: expected life of 0.82 years; volatility of 68%; no dividend yield; and a risk free interest rate of 0.91%.

	June 30, 2012
	Number of shares or warrants		Cost		Accumulated unrealized gains (losses)			Fair Value
Available for sale – common shares		250,000	$	43,125	$	(24,375	)	$	18,750
Warrants		250,000		16,995		(16,649	)		346
Total investments			$	60,120	$	(41,024	)	$	19,096

	December 31, 2011
	Number of shares or warrants		Cost		Accumulated unrealized gains (losses)			Fair Value
Available for sale – common shares		250,000	$	43,125	$	26,875		$	70,000
Warrants		250,000		16,995		(8,062	)		8,933
Total investments			$	60,120	$	18,813		$	78,933

During the three month period ended June 30, 2012, the Company recorded a net unrealized loss on the common shares of NVX of $58,750 in accumulated other comprehensive income and a net unrealized loss on the NVX Warrants of $6,330 in the Statement of Operations for the difference in the fair value at June 30, 2012 as compared to March 31, 2012.

During the six month period ended June 30, 2012, the Company recorded a net unrealized loss on the common shares of NVX of $51,250 in accumulated other comprehensive income and a net unrealized loss on the NVX Warrants of $8,587 in the Statement of Operations for the difference in the fair value at June 30, 2012 as compared to December 31, 2011.