Effective November 1, 2011, the Company entered into a sub-lease agreement for the lease of premises in Toronto, Ontario, Canada, for a term of 54 months. The Company has its head office at these premises, which is approximately 1,400 square feet. The annual base rent commitment for the Toronto head office space is CAD $48,084.

Effective February 8, 2012, the Company entered into a lease agreement for the lease of premises in Sparks, Nevada, USA, for a term of 12 months, and terminating on January 31, 2013. The lease agreement was amended such that the term was extended for a further 24 months, and terminating on January 31, 2015. The Company has its field office at these premises, which is approximately 5,500 square feet. The annual base rent commitment for the Sparks field office space is USD $29,727 for the period from February 1, 2013 to January 31, 2014, and USD $30,624 for the period from February 1, 2014 to January 31, 2015.

As at March 31, 2014, the Company had a commitment, for the above noted leases, of USD $127,150 remaining.

The following table outlines the remaining lease commitment at the end of the next five fiscal years based on the leases that are currently entered into by the Company:

Year	Total Lease Commitment
March 31, 2014	$127,150
June 30, 2014	$103,356
June 30, 2015	$38,860
June 30, 2016 and thereafter	$0

On September 12, 2013, the Company and certain of its current and former officers and directors (the “Liberty Silver Parties”) were named as defendants in a proposed securities class action lawsuit filed against Robert Genovese, certain individuals alleged to have collaborated with Mr. Genovese, and an offshore investment firm allegedly controlled by Mr. Genovese (the “Action,” Case No. 9:13-cv-80923-KLR, Stanaford v. Genovese et al.). The action contains various claims alleging violations of the United States Securities Exchange Act of 1934 and rules thereunder relating to anomalous trading activity and fluctuations in the Company’s share price from August through October 2012. The plaintiff purports to bring suit on behalf of all who purchased or otherwise acquired the Company’s common shares from April 1, 2008, through and including October 5, 2012. An amended complaint was filed on September 27, 2013.

On January 22, 2014, the Court appointed Jerald Todd Stanaford and Philip Hobel lead plaintiffs and approved Federman & Sherwood as Lead Counsel and Menzer & Hill, PA as Liaison Counsel. On March 24, 2014, Plaintiffs filed a Second Amended Consolidated Class Action Complaint. On May 8, 2014, the Liberty Silver Parties moved to dismiss the Complaint. The Liberty Silver Parties intend to vigorously defend the Action. It is not possible at this time to predict whether the Company will incur any liability as a result of the Action, or to estimate the damages, or the range of damages, if any, that the Company might incur in connection with the Action.

Effective December 1, 2012, the Company has deferred payment of salary to certain employees of the Company. Pursuant to agreements reached with such employees, the accrued salary obligation of $366,667 as at September 30, 2013, may, at the sole option of such employees, subject to regulatory approval and in certain instances shareholder approval, be settled pursuant to the issuance of common shares or forfeited, within two years from the effective date of the agreements with the various employees. The common shares would be priced at the greater of (i) $0.50 per common share, and (ii) the volume weighted average price of the Company’s common shares for the five trading days immediately preceding the date on which the election is made to receive the common shares.

Effective July 1, 2013, ongoing salary obligations have been reduced by $320,000 per annum. Effective October 1, 2013, subject to regulatory and shareholder approval, salary obligations of $216,000 per annum, which would otherwise be settled in cash on a monthly basis, will be settled with 50% in cash and 50% by the issuance of common stock, on a periodic basis, and priced at the greater of (i) $0.50 per common share, and (ii) the volume weighted average price of the Company’s common shares for the five trading days immediately preceding the date on which the shares are to be issued.

Additionally, in the normal course of operations, certain other contingencies may arise relating to legal actions undertaken against the Company. In the opinion of management, whether the impact of such potential legal actions would have a material adverse effect on the Company's results of operations, liquidity, or its financial position, cannot be determined in advance.