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<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">
<b>1. NATURE OF BUSINESS</b>
</p>
<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">Intervia, Inc. (the “Company”) was incorporated in the State of Nevada on February 2, 2005. The Company was previously in the business of developing fuel cell products in China. During fiscal 2008, the Company suspended the development of their fuel cell products due to the inability to raise sufficient additional financing. Management is currently focusing on identifying, evaluating and negotiating new business opportunities.</p>
<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">The Company is considered to be an exploration stage company and has not generated any revenues from operations. The Company’s shares were de-listed from the OTC-BB subsequent to filing the Form 10-Q for the period ended October 31, 2008. The Company has not been in compliance with the filing requirements of the Securities Exchange Commission (“SEC”). The Company is currently in the process of completing all the required filings with the SEC to enable the Company to reinstate its shares for trading on the OTC-BB. The Company will obtain additional funding by borrowing funds from its director and officer, or by private placement of common stock. There can be no assurance that the Company will be successful in its efforts to raise additional financing or if financing is available, that it will be on terms that are acceptable to the Company.</p>
<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">
The accompanying financial statements have been prepared assuming the Company will continue as a going concern. As of January 31, 2012, the Company has not yet achieved profitable operations and has accumulated a deficit of $368,299
since inception. Its ability to continue as a going concern is dependent upon the ability of the Company to obtain the necessary financing to meet its obligations and pay its liabilities arising from normal business operations when they come due. The outcome of these matters cannot be predicted with any certainty at this time which raises substantial doubt that the Company will be able to continue as a going concern. These financial statements do not include any adjustments to the amounts and classification of assets and liabilities that may be necessary should the Company be unable to continue as a going concern. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern.
</p>
<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">Management is also aware that material uncertainties exist, related to current economic conditions, which could cast doubt about the entity’s ability to continue to finance its activities. It is expected that the Company will incur further losses in the development of its business, all of which casts substantial doubt about the Company’s ability to continue as a going concern.</p>
<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">
<b>2. SIGNIFICANT ACCOUNTING POLICIES</b>
</p>
<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">
<u>Basis of Presentation</u>
</p>
<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">The financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and are expressed in U.S. dollars, the Company’s functional currency. The Company has elected a January 31 year end.</p>
<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">
<u>Use of Estimates</u>
</p>
<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could materially differ from those estimates and assumptions. Significant areas requiring the use of management estimates relate to the expected tax rates for future income tax recoveries and determining the fair values of financial instruments and the carrying value of the resource property.</p>
<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">
<u>Other Comprehensive Income</u>
</p>
<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">The Company follows standards for the reporting and display of comprehensive income (loss) and its components in the financial statements. During the years ended January 31, 2012 and 2011, the Company had no components that would cause comprehensive loss to be different than net loss.</p>
<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">
<u>Mineral Properties</u>
</p>
<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">Costs of acquiring mineral properties are capitalized by project area upon purchase of the associated claims. Costs to maintain the mineral rights and leases are expensed as incurred. When a property reaches the production stage, the related capitalized costs will be amortized, using the units of production method on the basis of periodic estimates of ore reserves.</p>
<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">Mineral properties are periodically assessed for impairment of value and any diminution in value. As of January 31, 2012, the Company recorded no impairments related to its mineral properties.</p>
<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">
<u>Long-Lived Assets</u>
</p>
<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">We review our long-lived assets for impairment annually or when changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Long-lived assets under certain circumstances are reported at the lower of carrying amount or fair value. Assets to be disposed of and assets not expected to provide any future service potential to the Company are recorded at the lower of carrying amount or fair value (less the projected cost associated with selling the asset). To the extent carrying values exceed fair values, an impairment loss is recognized in operating results.</p>
<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">
<u>Mineral Exploration and Development Costs</u>
</p>
<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">All exploration expenditures are expensed as incurred. Significant property acquisition payments for active exploration properties are capitalized. If no minable ore body is discovered, previously capitalized costs are expensed in the period the property is abandoned. Expenditures to develop new mines, to define further mineralization in existing ore bodies, and to expand the capacity of operating mines, are capitalized and amortized on a unit of production basis over proven and probable reserves.</p>
<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">Should a property be abandoned, its capitalized costs are charged to operations. The Company charges to operations the allocable portion of capitalized costs attributable to properties abandoned. Capitalized costs are allocated to properties sold based on the proportion of claims sold to the claims remaining within the project area.</p>
<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">
<u>Income Taxes</u>
</p>
<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">The Company uses the asset and liability method of accounting for income taxes. Under this method, deferred income tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statements carrying amounts of assets and liabilities and their respective tax bases. 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.</p>
<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">The Company accounts for uncertainty in income taxes by prescribing the recognition threshold that a tax position is required to meet before any part of the benefit of that position may be recognized in the financial statements.</p>
<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">
<u>Basic and Diluted Loss per Share</u>
</p>
<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">Basic loss per share is computed using the weighted average number of common shares outstanding during the year. Diluted earnings per share reflect the potential dilution that could occur if potentially dilutive securities were exercised or converted to common stock. The dilutive effect of options and warrants and their equivalent is computed by application of the treasury stock method and the effect of convertible securities by the “if converted” method. For the years presented, diluted loss per share is equal to basic loss per share as the Company does not have any dilutive securities.</p>
<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">
<u>Financial Instruments</u>
</p>
<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">Pursuant to ASC 820, Fair Value Measurements and Disclosures, an entity is required to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 prioritizes the inputs into three levels that may be used to measure fair value:</p>
<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">
<i>Level 1</i>
</p>
<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.</p>
<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">
<i>Level 2</i>
</p>
<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.</p>
<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">
<i>Level 3</i>
</p>
<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.</p>
<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">The Company’s financial instruments consist principally of cash, mineral properties, accounts payable, accrued liabilities, and amounts due to related parties. We believe that the recorded values of all of our financial instruments approximate their current fair values because of their nature and respective maturity dates or durations.</p>
<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">
<u>Recent Accounting Pronouncements</u>
</p>
<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">
In January 2010, the Financial Accounting Standard Board (“FASB”) issued Accounting Standards Update (“ASU “) 2010-06, Improving Disclosures about Fair Value Measurements, which is included in the ASC Topic 820 (Fair Value Measurements and Disclosures). ASU 2010-06 requires new disclosures on the amount and reason for transfers in and out of Level
1
and
2
fair value measurements. ASU 2010-06 also requires disclosures of activities, including purchases, sales, issuances, and a settlement within Level
3
fair value measurements and clarifies existing disclosure requirements on levels of disaggregation and disclosures about inputs and valuation techniques. ASU 2010-06 is effective for interim and annual reporting periods beginning after December 15, 2009 except for the disclosures about purchases, sales, issuances, and settlements in the roll forward of activity in Level
3
fair value measurements. Those disclosures are effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. The implementation of the adoption of ASU 2010-06 did not have a material impact on the Company’s financial statements.
</p>
<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">In February 2010, the FASB issued ASU 2010-09, "Subsequent Events (Topic 855) Amendments to Certain Recognition and Disclosure Requirements". The amendment eliminates the requirement for SEC filers to disclose the date through which subsequent events have been evaluated. This standard had no impact on the Company's financial statements.</p>
<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">There are several new accounting pronouncements issued by FASB which are not yet effective. Each of these pronouncements, as applicable, has been or will be adopted by the Company. Management does not believe any of these accounting pronouncements has had or will have a material impact on the Company's financial position or operating results.</p>
<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">
<b>3. RESOURCE PROPERTY</b>
</p>
<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">
<u>Proteus Property</u>
</p>
<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">
On July 15, 2010, the Company entered into an Option Agreement that would provide for the purchase of a
100% interest in the Proteus Property which is located near Cobalt, Ontario, Canada.
</p>
<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">To complete the option, the agreement requires the Company to make the following payments and incur the following amounts of exploration and development expenses:</p>
<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%">
<tr>
<td width="5%"> </td>
<td valign="top" width="5%">a)</td>
<td>
<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt; margin: inherit;">
$25,000
upon the execution of the agreement (paid);
</p>
</td>
</tr>
<tr>
<td width="5%"> </td>
<td valign="top" width="5%">b)</td>
<td>
<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt; margin: inherit;">
an additional $25,000
cash (paid) and incur $75,000
in exploration expenditures (of which the Company has prepaid $1,352
and incurred $73,648) by July 15, 2011;
</p>
</td>
</tr>
<tr>
<td width="5%"> </td>
<td valign="top" width="5%">c)</td>
<td>
<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt; margin: inherit;">
an additional $25,000
cash and incur an additional $100,000
in exploration expenditures by July 15, 2012; and
</p>
</td>
</tr>
<tr>
<td width="5%"> </td>
<td valign="top" width="5%">d)</td>
<td>
<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt; margin: inherit;">
incur an additional $150,000
in exploration expenditures by July 15, 2013.
</p>
</td>
</tr>
</table>
<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">
The property is subject to a
2% net smelter royalty, which the Company has the right to purchase in
2.5% increments for $500,000, on or before one (1) year from the date of production.
</p>
<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">To January 31, 2012, the Company has incurred the following costs related to its resource property:</p>
<div align="center">
<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="80%">
<tr valign="top">
<td align="left"> </td>
<td align="left" width="1%"> </td>
<td align="center" nowrap="nowrap" width="12%">January 31,</td>
<td align="center" nowrap="nowrap" width="2%"> </td>
<td align="center" nowrap="nowrap" width="1%"> </td>
<td align="center" nowrap="nowrap" width="12%">January 31,</td>
<td align="left" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left"> </td>
<td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td>
<td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%">2012</td>
<td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="2%"> </td>
<td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td>
<td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%">2011</td>
<td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#e6efff">Acquisition cost</td>
<td align="left" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="1%">$</td>
<td align="right" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="12%">
50,000
</td>
<td align="left" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="2%"> </td>
<td align="left" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="1%">$</td>
<td align="right" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="12%">
25,000
</td>
<td align="left" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left">Exploration costs, beginning of year</td>
<td align="left" width="1%">$</td>
<td align="right" width="12%">
-
</td>
<td align="left" width="2%"> </td>
<td align="left" width="1%">$</td>
<td align="right" width="12%">
-
</td>
<td align="left" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#e6efff">Exploration</td>
<td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td>
<td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%">
73,648
</td>
<td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="2%"> </td>
<td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td>
<td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%">
-
</td>
<td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left">Exploration costs, end of year</td>
<td align="left" style="border-bottom: 3px double rgb(0, 0, 0);" width="1%">$</td>
<td align="right" style="border-bottom: 3px double rgb(0, 0, 0);" width="12%">
73,648
</td>
<td align="left" style="border-bottom: 3px double rgb(0, 0, 0);" width="2%"> </td>
<td align="left" style="border-bottom: 3px double rgb(0, 0, 0);" width="1%">$</td>
<td align="right" style="border-bottom: 3px double rgb(0, 0, 0);" width="12%">
-
</td>
<td align="left" style="border-bottom: 3px double rgb(0, 0, 0);" width="2%"> </td>
</tr>
</table>
</div>
<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">
<b>4. RELATED PARTY TRANSACTIONS</b>
</p>
<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">
As of January 31, 2009 the Company owed $74,529
to related parties. During the year ended January 31, 2011, the Company received $3,414
in additional cash loans from related parties, leaving a balance owed of $77,943
at January 31, 2011. During the year ended January 31, 2012, the Company received $19,335
in additional cash loans from related parties, and had $9,030
in expenses paid on its behalf by related parties. The amount owing is unsecured, bears no interest, and due on demand. All related party transactions are measured at the exchange amount which is the amount of consideration agreed to by the related parties.
</p>
<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">
<b>5. COMMON STOCK</b>
</p>
<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">
The Company is authorized to issue
75,000,000
shares of its $0.001
par value common stock. At January 31, 2012 and 2011, the Company had
15,600,000
and
3,500,000
shares issued and outstanding respectively. At January 31, 2012 and 2011 the Company had no issued or outstanding stock options or warrants.
</p>
<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">
At January 31, 2011, the Company had received $99,960
in advance for the issuance of
12,000,000
shares of common stock at a price of $0.00833
per share. On January 12, 2011, these shares of common stock were issued in full satisfaction of the stock subscription payable.
</p>
<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">
On July 14, 2011, the Company issued
100,000
shares of capital stock for cash at $1.00
per share, for an aggregate value of $100,000.
</p>
<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">
At January 31, 2012, the Company had received $70,000
in advance for the issuance of
140,000
shares of common stock at a price $0.50
per share. On January 23, 2012, these shares of common stock were issued in full satisfaction of the stock subscription payable.
</p>
<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">
<b>6. INCOME TAXES</b>
</p>
<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">
The Company is subject to United States federal and state income taxes at an approximate rate of
34%. The reconciliation of the provision for income taxes at the United States federal statutory rate compared to the Company’s income tax expense as reported is as follows:
</p>
<div align="center">
<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="80%">
<tr>
<td align="left" style="border-bottom: 3px double rgb(0, 0, 0);"> </td>
<td align="right" style="border-bottom: 3px double rgb(0, 0, 0);" width="1%"> </td>
<td align="right" style="border-bottom: 3px double rgb(0, 0, 0);" width="12%"> </td>
<td align="right" style="border-bottom: 3px double rgb(0, 0, 0);" width="2%"> </td>
<td align="right" style="border-bottom: 3px double rgb(0, 0, 0);" width="1%"> </td>
<td align="right" style="border-bottom: 3px double rgb(0, 0, 0);" width="12%"> </td>
<td align="right" style="border-bottom: 3px double rgb(0, 0, 0);" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);"> </td>
<td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td>
<td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%">
<div align="center">2012</div>
</td>
<td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="2%">
<div align="center"> </div>
</td>
<td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">
<div align="center"> </div>
</td>
<td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%">
<div align="center">2011</div>
</td>
<td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#e6efff">Net loss before income taxes</td>
<td align="left" bgcolor="#e6efff" width="1%">$</td>
<td align="right" bgcolor="#e6efff" nowrap="nowrap" width="12%">
(160,638
</td>
<td align="left" bgcolor="#e6efff" width="2%">)</td>
<td align="left" bgcolor="#e6efff" width="1%">$</td>
<td align="right" bgcolor="#e6efff" nowrap="nowrap" width="12%">
(31,001
</td>
<td align="left" bgcolor="#e6efff" width="2%">)</td>
</tr>
<tr valign="top">
<td align="left">Statutory tax rate</td>
<td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td>
<td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%">
34%
</td>
<td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="2%"> </td>
<td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td>
<td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%">
34%
</td>
<td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#e6efff">Income tax recovery</td>
<td align="left" bgcolor="#e6efff" width="1%"> </td>
<td align="right" bgcolor="#e6efff" width="12%">
(54,620
</td>
<td align="left" bgcolor="#e6efff" width="2%">)</td>
<td align="left" bgcolor="#e6efff" width="1%"> </td>
<td align="right" bgcolor="#e6efff" width="12%">
(10,540
</td>
<td align="left" bgcolor="#e6efff" width="2%">)</td>
</tr>
<tr valign="top">
<td align="left">Valuation allowance</td>
<td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td>
<td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%">
54,620
</td>
<td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="2%"> </td>
<td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%"> </td>
<td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%">
10,540
</td>
<td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);"> </td>
<td align="left" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="1%">$</td>
<td align="right" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="12%">
-
</td>
<td align="left" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="2%"> </td>
<td align="left" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="1%">$</td>
<td align="right" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="12%">
-
</td>
<td align="left" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="2%"> </td>
</tr>
</table>
</div>
<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">The amount taken into income as deferred income tax assets must reflect that portion of the income tax loss carry forwards that is more likely-than-not to be realized from future operations. The Company has chosen to provide a full valuation allowance against all available income tax loss carry forwards, regardless of their time of expiry.</p>
<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">The Company has not filed income tax returns since inception. Tax authorities prescribe penalties for failing to file certain tax returns and supplemental disclosures. Upon filing there could be penalties and interest assessed. Such penalties vary by jurisdiction and by assessing practices and authorities. As the Company has incurred losses since inception there would be no known or anticipated exposure to penalties for income tax liability. However, certain jurisdictions may assess penalties for failing to file returns and other disclosures and for failing to file other supplementary information associated with foreign ownership, activities, debt and equity positions. Management has considered the likelihood and significance of possible penalties associated with its current and intended filing positions and has determined, based on their assessment, that such penalties, if any, would not be expected to be material. Management’s assessment is subject to uncertainty.</p>
<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">
No provision for income taxes has been provided in these financial statements due to the net loss for the years ended January 31, 2012 and 2011. At January 31, 2012, the Company has net operating loss carryforwards, which expire commencing in 2032 The potential tax benefit of these losses may be limited due to certain change in ownership provisions under Section
382
of the Internal Revenue Code (“IRS”) and similar state provisions.
</p>
<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">
IRS Section
382
places a limitation (the “Section
382
Limitation”) on the amount of taxable income which can be offset by net operating loss carryforwards after a change in control (generally greater than a
50% change in ownership) of a loss corporation. Generally, after a control change, a loss corporation cannot deduct operating loss carryforwards in excess of the Section
382
Limitation. Due to these “change in ownership” provisions, utilization of the net operating loss and tax credit carryforwards may be subject to an annual limitation regarding their utilization against taxable income in future periods. The Company has not concluded its analysis of Section
382
through January 31, 2012, but believes that the provisions will not limit the availability of losses to offset future income.
</p>
<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">
<b>7. SUBSEQUENT EVENTS</b>
</p>
<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">
On February 10, 2012, the Company issued
140,000
shares of common stock at a price of $0.50
per share for $70,000
received in January 2012 as part of a private placement.
</p>