Discontinued Operations and Disposal Groups

9 Months Ended

Nov. 30, 2013

Discontinued Operations and Disposal Groups:

Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures

On October 5, 2012 the Company entered an agreement with European Resource Capital Inc. for the sale of the Company’s 24,420,000 shares of common stock of Celtic (92.16% interest), 64,987,982 Metallum options providing the acquirer with the option to acquire an additional 64,987,982 common shares of Metallum for £0.10 per share through December 31, 2012 and amounts receivable from Celtic of approximately $217,031 in exchange for $2,500,000 (Canadian) ($2,553,887 at exchange rates at the date of this transaction).  European Resource Capital Inc. issued the Company an eight percent (8%) 5 year $2,500,000 (Canadian) promissory note payable that is secured by the 24,420,000 shares of Celtic common stock. 

On February 8, 2013, the Company’s then wholly owned subsidiary Focus Gold Mexico Limited entered into a share purchase agreement with three individuals,  Santiago Leon Avaleyra, Eduardo Zayas Dueñas and Carmen Leticia Calderon Leon, as purchasers, to sell its 50 shares of common stock in Fairfields Gold, S.A. de C.V. for $1,900,000 or purchasers can return the original consideration from the December 31, 2010 transaction (512,500 shares of the Company’s common stock) on the closing date of February 20, 2013.  On closing, the Company received as consideration 512,501 shares of its common stock with an aggregate fair value as at February 8, 2013 of $66,625.  The 512,501 shares of common stock received has been recorded as treasury stock on the condensed consolidated balance sheet pending cancellation.

A summarized statement of operations for the discontinued operations for the nine month periods ended November 30, 2013 and 2012 is as follows:

	November 30,		November 30,
	2013		2012
Revenues	$	-	$                          -
Exploration expense		-		102,590
General and administrative		-		1,354,034
Total operating expenses		-		1,456,624
Net gain on assets and liabilities written off		-		(295,898)
Mineral property impairment		-		2,756,456
Amortization of debt discount		-		354,817
Interest and finance cost		-		19,389
Non-controlling interest in operations		-		(125,448	)
Loss from discontinued operations	$	-		$          (4,165,940	)