10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

———————

FORM 10-Q

———————

(Mark one)
x	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
	ACT OF 1934
For the Quarterly Period Ended July 31, 2011

Or

o	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
	ACT OF 1934
For the transition period from ________________ to ________________

Commission File Number: 000-53861

———————

AURUM, INC.

(Exact name of registrant as specified in its charter)

———————

Delaware	27-1728996
(State or Other Jurisdiction	(I.R.S. Employer
of Incorporation)	Identification No.)
Level 8, 580 St Kilda Road
Melbourne, Victoria, Australia	3004
(Address of Principal Executive Offices)	(Zip Code)
Registrant’s telephone number, including area code: 001 (613) 8532 2800

———————

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   x  Yes ¨  No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).     x Yes  ¨  No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “accelerated filer,” “large accelerated filer” and “smaller reporting company” in Rule 12-b2 of the Exchange Act.

(Check one):   Large accelerated filer  ¨ Accelerated filer  ¨ Non-accelerated filer  ¨ Smaller reporting company  x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12-b2 of the Exchange Act).   ¨  Yes  x  No

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. There were 105,600,000 outstanding shares of Common Stock as of September 7, 2011.

   Table Of Contents

		PAGE NO
PART I.	FINANCIAL INFORMATION
Item 1	Financial Statements	2
Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	13
Item 3	Quantitative and Qualitative Disclosure about Market Risk	16
Item 4	Controls and Procedures	16
PART II	OTHER INFORMATION
Item 1	Legal Proceedings	18
Item 1A	Risk Factors	18
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	18
Item 3	Defaults Upon Senior Securities	18
Item 4	Removed and Reserved	18
Item 5	Other Information	18
Item 6	Exhibits	18

SIGNATURES		19
EXHIBIT INDEX		20
Exh. 31.1	Certification	21
Exh. 31.2	Certification	22
Exh. 32.1	Certification	23
Exh. 32.2	Certification	24

1

PART I – FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS

Introduction to Interim Financial Statements.

The interim financial statements included herein have been prepared by Aurum, Inc. (“Aurum” or the “Company”) without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (The “Commission”). Certain information and footnote disclosure normally included in financial statements prepared in accordance with generally accepted accounting principles in United States of America (“US GAAP”) have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading.

The interim financial statements should be read in conjunction with the financial statement and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended October 31, 2010.

In the opinion of management, all adjustments, consisting of normal recurring adjustments necessary to present fairly the financial position of the Company as of July 31, 2011, the results of its operations for the three and nine month periods ended July 31, 2011 and July 31, 2010 and for the cumulative period September 29, 2008 (inception) through July 31, 2011, and the changes in its cash flows for the nine month periods ended July 31, 2011 and July 31, 2010 and for the cumulative period September 29, 2008 (inception) through July 31, 2011, have been included.  The results of operations for the interim periods are not necessarily indicative of the results for the full year.

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

2

AURUM, INC.

(An Exploration Stage Company)

Balance Sheet

	July 31, 2011 US$ (unaudited)			October 31, 2010 US$
ASSETS
Current Assets:
Cash		41,833			39,059
Receivables		9,500			-
Prepayments		29,985			1,700
Prepaid option fees (Note 14)		290,000			-
Total Current Assets		371,318			40,759
Non Current Assets:
Property and equipment (Note 3)		79,290			15,677
Total Non Current Assets		79,290			15,677
Total Assets		450,608			56,436
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current Liabilities:
Accounts payable and accrued expenses		112,881			26,969
Total Current Liabilities		112,881			26,969
Non Current Liabilities:
Advances from affiliate (Note 4)		3,432,742			1,079,272
Total Non Current Liabilities		3,432,742			1,079,272
Total Liabilities		3,545,623			1,106,241
Stockholders’ Equity (Deficit) :
Common stock: $.0001 par value 500,000,000 shares authorised, and 105,600,000 shares issued and outstanding at July 31, 2011 and October 31, 2010.		10,560			10,560
Additional Paid-in-Capital		1,709,574			11,040
Retained (Deficit) during exploration stage		(4,725,140	)		(981,396	)
Retained (Deficit) prior to exploration activities		(90,009	)		(90,009	)
Total Stockholders’ Equity (Deficit)		(3,095,015	)		(1,049,805	)
Total Liabilities and Stockholders’ Equity (Deficit)		450,608			56,436

See Notes to Financial Statements

3

AURUM, INC.

(An Exploration Stage Company)

Statements of Operations

(Unaudited)

	For the three months ended July 31, 2011			For the three months ended July 31, 2010			For the nine months ended July 31, 2011			For the nine months ended July 31, 2010			For the period from inception September 29, 2008 to July 31, 2011
	US$			US$			US$			US$			US$
Revenues	$	-		$	-		$	-		$	-		$	-
Costs and expenses:
Legal, accounting and professional		17,422			26,224			55,743			62,726			165,952
Administration expenses		78,511			15,109			194,150			63,754			334,484
Stock based compensation		662,754			-			1,698,534			-			1,698,534
Exploration expenditure		854,980			185,082			1,540,967			441,381			2,176,586
Donations		-			-			-			100,000			100,000
Interest expense		-			-			-			13			14
Total costs and expenses		1,613,667			226,415			3,489,394			667,874			4,475,570
(Loss) from operations		(1,613,667	)		(226,415	)		(3,489,394	)		(667,874	)		(4,475,570	)
Foreign currency exchange (loss) gain		(50,188	)		9,495			(254,438	)		(1,118	)		(339,092	)
Other income - interest		42			-			88			9			113
(Loss) before income taxes		(1,663,813	)		(216,920	)		(3,743,744	)		(668,983	)		(4,814,549	)
Provision for income taxes		-			-			-			-			-
Net (loss)		(1,663,813	)		(216,920	)		(3,743,744	)		(668,983	)		(4,814,549	)
Basic and diluted net (loss) per common equivalent shares		(0.02	)		(0.00	)		(0.04	)		(0.01	)		(0.05	)
Weighted average number of common equivalent shares (in 000’s)		105,600			105,600			105,600			105,600			103,951

See Notes to Financial Statements

4

AURUM, INC.

(An Exploration Stage Company)

Statements of Stockholders’ Equity (Deficit)

(Unaudited)

	Shares		Common Stock Amount		Additional Paid-in Capital		Retained (Deficit) during exploration stage			Retained (Deficit) prior to exploration activities			Total
			US$		US$		US$			US$			US$
Inception, September 29, 2008		-		-		-		-			-			-
Issuance of shares		96,000,000		9,600		-		-			(600	)		9,000
Net (loss)		-		-		-		-			(12	)		(12	)
Balance, October 31, 2008		96,000,000		9,600		-		-			(612	)		8,988
Issuance of shares		9,600,000		960		11,040		-			-			12,000
Net (loss)		-		-		-		-			(89,397	)		(89,397	)
Balance, October 31, 2009		105,600,000		10,560		11,040		-			(90,009	)		(68,409	)
Net (loss)		-		-		-		(981,396	)		-			(981,396	)
Balance, October 31, 2010		105,600,000		10,560		11,040		(981,396	)		(90,009	)		(1,049,805	)
Amortization of 3,250,000 options under  2010 equity incentive plan		-		-		1,698,534		-			-			1,698,534
Net (loss)		-		-		-		(3,743,744	)		-			(3,743,744	)
Balance, July 31, 2011		105,600,000		10,560		1,709,574		(4,725,140	)		(90,009	)		(3,095,015	)

See Notes to Financial Statements

5

AURUM, INC.

(An Exploration Stage Company)

Statements of Cash Flows

(Unaudited)

	Nine months ended July 31, 2011 US$			Nine months ended July 31, 2010 US$			For the period from inception September 29, 2008 to July 31, 2011 US$
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss)		(3,743,744	)		(668,983	)		(4,814,549	)
Adjustments to reconcile net loss to net cash (used)
in operating activities:
Employee options issued for stock based compensation		1,698,534			-			1,698,534
Foreign currency exchange loss		254,438			364			337,074
Depreciation		20,853			3,408			26,243
Net change in:
Prepayments		(28,285	)		7,997			(29,985	)
Receivables		(9,500	)		-			(9,500	)
Advances - affiliate		-			12,971			-
Accounts payable and accrued expenses		85,912			(23,792	)		112,881
Net Cash (Used) in Operating Activities		(1,721,792	)		(668,035	)		(2,679,302	)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment		(84,466	)		(10,227	)		(105,533	)
Option fees paid		(290,000	)		-			(290,000	)
Net Cash (Used) in Investing Activities		(374,466	)		(10,227	)		(395,533	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of stock		-			-			21,000
Borrowings from affiliate		2,098,062			691,724			3,096,310
Net Cash Provided by Financing Activities		2,098,062			691,724			3,117,310
Effect of exchange rate  on cash		970			(364	)		(642	)
Net increase in cash		2,774			13,098			41,833
Cash at beginning of period		39,059			189			-
Cash at end of period		41,833			13,287			41,833
Supplemental Disclosures Interest Paid		-			13			14

See Notes to Financial Statements

6

AURUM, INC.

(An Exploration Stage Company)

Notes to Financial Statements

July 31, 2011

(unaudited)

(1)    ORGANIZATION AND BUSINESS

Aurum, Inc. ("Aurum” or the “Company") is a Delaware corporation, originally incorporated in Florida as Liquid Financial Engines, Inc. The principal stockholder of Aurum is Golden Target Pty Ltd., an Australian corporation (“Golden”), which owned 96.21% of Aurum as of July 31, 2011.

On January 20, 2010, the Company re-incorporated in the state of Delaware (the “Reincorporation”) through a merger involving Liquid Financial Engines Inc. (“Liquid”) and Aurum, Inc., a Delaware Corporation that was a wholly owned subsidiary of Liquid. The Reincorporation was effected by merging Liquid with Aurum, with Aurum being the surviving entity. For financial reporting purposes Aurum is deemed a successor to Liquid.

In July 2009, Golden acquired a 96% interest in Aurum from certain stockholders. In connection therewith, the Company appointed a new President/Chief Executive Officer and Chief Financial Officer/Secretary and a new sole Director. The sole director and stockholder of Golden is also the President of the Company.

In 2009, the Company shifted its focus to mineral exploration for gold and copper in the Lao Peoples Democratic Republic (Lao P.D.R or Laos).  Laos is known by the Company to have significant potential for gold and copper discoveries and is a highly under explored nation with respect to all mineral commodities.

In December 2010, the Company executed a Management and Shareholders Agreement with Argonaut Overseas Investments Ltd (“AOI”), an indirectly wholly owned Subsidiary of Argonaut Resources N.L., in respect to Argonaut’s 70% held Century Concession in Laos.

The agreement appoints Aurum as the manager of the Century Thrust Joint Venture Agreement (“Joint Venture”) and the Company has the right to earn 72.86% of AOI’s interest in the Joint Venture which is equivalent to a 51% beneficial interest in the Century Concession. The agreement between Aurum and AOI includes a one year assessment period, ending in December 2011, during which Aurum will conduct initial exploration to assess the Tenement.

On February 10, 2011, the Company entered into a Deed of Agreement with the shareholders of the Lao Inter Mining Options Ltd (“LIMO”) which grants Aurum an option to purchase LIMO’s 20% interest in the Joint Venture. This Agreement, in conjunction with the Management and Shareholders Agreement with AOI enables Aurum to acquire, at its option, a 71% beneficial interest in the Century Concession (see note 14).

The Company’s ability to continue operations through the remainder of 2011 is dependent upon future funding from affiliated entities, capital raisings, or its ability to commence revenue producing operations and positive cash flows.

(2)           RECENT ACCOUNTING PRONOUNCEMENTS

In January 2010, the FASB issued ASU 2010-06, Fair Value Measurements and Disclosures (Topic 820) – Improving Disclosures about Fair Value Measurements. This ASU requires new disclosures and clarifies certain existing disclosure requirements about fair value measurements. ASU 2010-06 requires a reporting entity to disclose significant transfers in and out of Level 1 and Level 2 fair value measurements, to describe the reasons for the transfers and to present separately information about purchases, sales, issuances and settlements for fair value measurements using significant unobservable inputs. 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, which is effective for interim and annual reporting periods beginning after December 15, 2010; early adoption is permitted. The adoption of ASU 2010-06 did not have a material impact on our financial position, results of operations or cash flows.

7

In May 2011, the Financial Accounting Standards Board (FASB) issued ASU No. 2011-04, “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and International Financial Reporting Standards (“IFRSs”)”. The amendments in this Update generally represent clarifications of Topic 820, but also include some instances where a particular principle or requirement for measuring fair value or disclosing information about fair value measurements has changed. This Update results in common principles and requirements for measuring fair value and for disclosing information about fair value measurements in accordance with U.S. GAAP and IFRSs. The amendments in this Update are to be applied prospectively. For public entities, the amendments are effective during interim and annual periods beginning after December 15, 2011. Early application by public entities is not permitted. The Company does not expect this guidance to have a significant impact on our consolidated financial position, results of operations or cash flows.

In June 2011, the FASB issued Accounting Standards Update (“ASU”) 2011-05, Presentation of Comprehensive Income. This ASU is intended to increase the prominence of other comprehensive income in financial statements by presenting the components of net income and other comprehensive income in one continuous statement, referred to as the statement of comprehensive income, or in two separate, but consecutive statements. The new guidance eliminates the current option to report other comprehensive income and its components in the statement of stockholders’ equity. This new guidance is effective for fiscal years and interim periods beginning after December 15, 2011. While the new guidance changes the presentation of comprehensive income, there are no changes to the components that are recognized in net income or other comprehensive income under current accounting guidance; therefore, adoption of the new guidance in the first quarter of fiscal 2012 will not have any impact on the Company’s consolidated financial position, results of operations or cash flows.

(3)           PROPERTY AND EQUIPMENT

Property and equipment is stated at cost. The Company records depreciation and amortization, when appropriate, using the straight-line method over the estimated useful lives of the assets. Expenditures for maintenance and repairs are charged to expense as incurred. Additions, major renewals and replacements that increase the property’s useful life are capitalized. Property sold or retired, together with the related accumulated depreciation is removed from the appropriate accounts and the resultant gain or loss is included in net income (loss).

		At July 31, 2011							At October 31, 2010
	Depreciable Life (in years)	Cost $		Accumulated Depreciation $			Net Book Value $		Cost $		Accumulated Depreciation $			Net Book Value $
Office Equipment	1-2		3,830		(2,901	)		929		3,830		(1,469	)		2,362
Computer Equipment	1-3		101,053		(23,269	)		77,784		17,237		(3,921	)		13,316
Furniture	1-2		650		(73	)		577
			105,533		(26,243	)		79,290		21,067		(5,390	)		15,677

The depreciation expense for the nine months ended July 31, 2011 amounted to $20,853 and for the nine months ended July 31, 2010 amounted to $3,408.

(4)           AFFILIATE TRANSACTIONS

The Company entered into an agreement with AXIS Consultants Pty Ltd (“AXIS”) to provide management and administration services to the Company. AXIS is affiliated through common management. The Company is one of ten affiliated companies to which AXIS provides services. Each of the companies has some common Directors, officers and shareholders. Currently, there are no material arrangements or planned transactions between the Company and any of the affiliated companies other than AXIS.

During the nine months ended July 31, 2011, AXIS provided services in accordance with the services agreement, incurred direct costs on behalf of the Company and provided funding of $2,098,062. The amounts owed to AXIS as of July 31, 2011 and October 31, 2010 was $3,432,742 and $1,079,272 respectively and are reflected in non current liabilities - advance from affiliates. During the nine months ended July 31, 2011 and 2010, AXIS did not charge interest.

8

The Company intends to repay these amounts with funds raised either via additional debt or equity offerings, but as this may not occur within the next 12 months. AXIS has agreed not to call the advance within the next twelve months and accordingly the Company has classified the amounts payable as non-current in the accompanying balance sheet.

(5)           GOING CONCERN

The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which contemplate continuation of Aurum as a going concern. Aurum has incurred net losses since inception and may continue to incur substantial and increasing losses for the next several years, all of which raises substantial doubt as to its ability to continue as a going concern.

In addition, Aurum is reliant on loans and advances from corporations affiliated with the President of Aurum. Based on discussions with these affiliate companies, Aurum believes this source of funding will continue to be available. Other than the arrangements noted above, Aurum has not confirmed any other arrangement for ongoing funding. As a result Aurum may be required to raise funds by additional debt or equity offerings in order to meet its cash flow requirements during the forthcoming year.

The retained deficit of the Company from inception (September 2008) through July 31, 2011 amounted to $4,815,149.

(6)           INCOME TAXES

Aurum files its income tax returns on an accrual basis.

The Company follows the accounting requirements associated with uncertainty in income taxes using the provisions of FASB ASC 740, Income Taxes. Using that guidance, tax positions initially need to be recognized in the financial statements when it is more-likely-than-not the positions will be sustained upon examination by the tax authorities. It also provides guidance for derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. As of July 31, 2011, the Company has no uncertain tax positions that qualify for either recognition or disclosure in the financial statements.

The Company is required to file tax returns in the United States. The Company has available net operating loss carry forwards which are subject to limitations aggregating approximately US$700,000 which would expire in years 2029 through 2030.

The Company’s tax returns for all years since 2008 remain open to examination by the respective tax authorities.  There are currently no tax examinations in progress.

(7)           STOCKHOLDERS EQUITY

In September 2008, 96,000,000 shares of common stock were issued to the Company’s founder raising $9,000.

In March 2009, the Company raised $12,000 in a registered public offering of 9,600,000 shares of common stock share pursuant to a prospectus dated January 30, 2009.

On September 29, 2009 the Company’s Board of Directors declared an 8-for-1 stock split in the form of a stock dividend that was payable in October 2009 to stockholders of record as of October 23, 2009. The Company has accounted for this bonus issue as a stock split and accordingly, all share and per share data has been retroactively restated.

(8)           ISSUE OF OPTIONS UNDER EQUITY INCENTIVE PLAN

(i) Effective December 13, 2010, the Company issued 2,500,000 options over shares of Common Stock to employees under the 2010 Equity Incentive Plan that has been adopted by the Directors of the Company. The options vested 1/3 on December 13, 2010, 1/3 will vest on November 17, 2011 and the balance on November 17, 2012. The exercise price of the options is US$1.00 and the latest exercise date for the options is November 17, 2020.  

9

The Company has accounted for all options issued based upon their fair market value using the Binomial pricing model.

An external consultant has calculated the fair value of the 2,500,000 options using the Binomial valuation method using the following inputs:

Grant date	Dec 13, 2010	Dec 13, 2010	Dec 13, 2010
Grant date share price	US$1.10	US$1.10	US$1.10
Vesting date	Dec 13, 2010	Nov 17, 2011	Nov 17, 2012
Expected life in years	4.5	5.0	5.5
Risk-free rate	1.91%	1.91%	1.91%
Volatility	95%	95%	95%
Exercise price	US$1.00	US$1.00	US$1.00
Call option value	US$0.78	US$0.81	US$0.83

	Options		Option Price Per Share US$		Weighted Average Exercise Price US$
Outstanding at November 1, 2010		-		-		-
Granted		2,500,000		1.00		1.00
Forfeited		-		-		-
Outstanding at July 31, 2011		2,500,000		1.00		1.00

	The exercise price is US$1.00 per option. The weighted average per option fair value of options granted during fiscal 2011 was US$0.81 and the weighted average remaining contractual life of those options is 9½ years. There are 833,333 options currently exercisable.
	The total value of the outstanding unvested options equates to $723,700 and is being amortised over the vesting periods.
	For the nine months ended July 31, 2011, the amortization amounted to $1,292,967.
(ii)	In May 2011, the Company issued 750,000 options over shares of Common Stock to employees under the 2010 Equity Incentive Plan that has been adopted by the Directors of the Company. The options vested 1/3 upon grant date, 1/3 will vest on February 1, 2012 and the balance on February 1, 2013. The exercise price of the options is US$1.00 and the latest exercise date for the options is February 1, 2018.
	The Company has accounted for all options issued based upon their fair market value using the Binomial pricing model.
	An external consultant has calculated the fair value of the 750,000 options using the Binomial valuation method using the following inputs:

Grant date	May 1, 2011	May 1, 2011	May 1, 2011
Grant date share price	US$1.30	US$1.30	US$1.30
Vesting date	May 1, 2011	Feb 1, 2012	Feb 1, 2013
Expected life in years	3.5	4.0	4.5
Risk-free rate	1.04%	2.02%	2.02%
Volatility	100%	100%	100%
Exercise price	US$1.00	US$1.00	US$1.00
Call option value	US$0.91	US$0.95	US$0.99

10

	Options		Option Price Per Share US$		Weighted Average Exercise Price US$
Outstanding at November 1, 2010		-		-		-
Granted		750,000		1.00		1.00
Forfeited		-		-		-
Outstanding at July 31, 2011		750,000		1.00		1.00

The exercise price is US$1.00 per option. The weighted average per option fair value of options granted during fiscal 2011 was US$0.95 and the weighted average remaining contractual life of those options is 6½ years. There are 250,000 options currently exercisable.

The total value of the outstanding unvested options equates to $306,933 and is being amortised over the vesting periods.

For the nine months ended July 31, 2011, the amortization amounted to $405,567.

(9)           FAIR VALUE OF FINANCIAL INSTRUMENTS

The Company’s financial instruments consist of cash, receivables and advances from affiliate. The carrying amounts of cash and receivables approximates its fair values because of the short term maturities of those instruments. The fair value of advances from affiliate is not readily determinable as no similar market exists for these instruments and it doesn’t have a specified date of repayment.

(10)         EXPLORATION STAGE COMPANY

As a result of the Company’s focus on mineral exploration, it is considered an exploration stage company and accordingly reports operations, stockholders deficit and cash flows since inception through the date that revenues are generated from management’s intended operations. Since inception, the Company has incurred an operating loss of $4,814,549. The Company’s working capital has been primarily generated through the sales of common stock as well as advances from an affiliated entity.

(11)        NET LOSS PER SHARE

Basic income (loss) per share is computed by dividing net profit (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share is similarly calculated using the treasury stock method except that the denominator is increased to reflect the potential dilution that would occur if dilutive securities at the end of the applicable period were exercised. Options to acquire 1,083,333 shares of common stock were not included in the diluted weighted average shares outstanding as such effects would be anti-dilutive.

(12)         CASH

The Company maintains cash deposits with financial institutions in Australia and in Laos (USD).  Cash deposits maintained in Australian dollars are translated into US dollars at the period end exchange rate with the related adjustment recognized in statements of operations.

(13)        COMMITMENTS

Pursuant to the Century Thrust Joint Venture Agreement (Joint Venture), the Company may fund up to $6.5 million in explorationexpenditure, of which $1,125 million has already been funded, in order to acquire a 51% beneficial interest in the Joint Venture. Should Aurum wish to execute its rights under the agreement, it may be required to expend up to $5.38 million on the Century Thrust Concession (see note 1).

The Company has entered into and thereafter amended a Deed of Agreement (“the LIMO Deed”) which grants the Company an option to purchase 20% of Lao Inter Mining Options Ltd’s (“LIMO”) interest in the Joint Venture at a purchase price of $1.35 million, inclusive of option fees of $405,000. The Company has paid the first and second tranches of option fees of $67,500 and $202,500, respectively, as at July 31, 2011 and paid the third tranche of $135,000 in August 2011.

11

(14)        OPTION AGREEMENT

Pursuant to the LIMO Deed, as amended, the Company has paid the first and second tranches of Option Fees of $270,000, along with associated costs of $20,000 (see note 13).

The third Option fee of $135,000, was paid in August, 2011, after LIMO completed certain conditions detailed in the agreement. The Company has 60 days from the date of the last option payment to exercise the option to purchase 20% of the Joint Venture for $1.35 million, inclusive of the option fees of $405,000.

(15)         SUBSEQUENT EVENTS

The Company has evaluated significant events subsequent to the balance sheet date through the date the financial statements were issued and has determined that there were no subsequent events or transactions which would require recognition or disclosure in the financial statements, other than herein.

On August 15, 2011, pursuant to the LIMO Deed, the Company paid the third Option fee of $135,000.

12

Item 2.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

General

The following discussion and analysis of our financial condition and plan of operation should be read in conjunction with the Financial Statements and accompanying notes and the other financial information appearing elsewhere in this report. This report contains numerous forward-looking statements relating to our business. Such forward-looking statements are identified by the use of words such as believes, intends, expects, hopes, may, should, plan, projected, contemplates, anticipates or similar words. Actual operating schedules, results of operations and other projections and estimates could differ materially from those projected in the forward-looking statements.

Overview

Aurum, Inc. is an exploration stage company and was incorporated in Florida on September 29, 2008, to develop and market financial software. In July 2009, Golden Target Pty Ltd, an Australian corporation ("Golden") acquired a 96% interest in Aurum from Daniel McKelvey and certain other stockholders. Mr. McKelvey resigned as Sole Director and Officer of Aurum, Joseph Gutnick was appointed President, Chief Executive Officer and a Director and Peter Lee was appointed Chief Financial Officer and Secretary. In March 2011, the Company appointed Simon Lee as Chief Financial Officer. Peter Lee resigned as Chief Financial Officer but has agreed to remain as Secretary. In June, 2011, the Company appointed Craig Michael as Chief Executive Officer. Joseph Gutnick relinquished his role as Chief Executive Officer and was appointed Executive Chairman. Commencing August 2009, the Company decided to focus on mineral exploration for gold and copper in the Lao Peoples Democratic Republic. The Company’s planned operations have not commenced and is considered to be in the exploration stage. On January 20, 2010, the Company re-incorporated in the state of Delaware through a merger involving Liquid Financial Engines Inc. and Aurum, Inc., with Aurum being the surviving entity.

In December 2010, the Company executed a Management and Shareholders Agreement with Argonaut Overseas Investments Ltd (“AOI”), an indirectly wholly owned Subsidiary of Argonaut Resources N.L., in respect to Argonaut’s 70% held Century Concession in Laos.

The agreement appoints Aurum as the manager of the Century Thrust Joint Venture Agreement and the Company has the right to earn 72.86% of AOI’s interest in the Joint Venture which is equivalent to a 51% beneficial interest in the Century Concession. The agreement between Aurum and AOI includes a one year assessment period during which Aurum will conduct initial Exploration to assess the Tenement.

On February 10, 2011, the Company entered into a Deed of Agreement with the shareholders of the Laos Inter Mining Options Ltd (“LIMO”) which grants Aurum an option to purchase LIMO’s 20% interest in the Joint Venture. This Agreement in conjunction with the Management and Shareholders Agreement with AOI enables Aurum to acquire, at its option, 71% beneficial interest in the Century Concession. In August 2011, the Company made the last option payment of $135,000. The Company has 60 days from the date of the last option payment to exercise the option to purchase 20% of the Joint Venture for $1.35 million, inclusive of the previously paid option fees of $405,000.

We have incurred net losses since our inception and may continue to incur substantial and increasing losses for the next several years. Since inception (September 2008) we have incurred accumulated losses of $4,814,549 which was funded primarily by the sale of equity securities and advances from affiliates.

RESULTS OF OPERATIONS

Three Months Ended July 31, 2011 vs. Three Months Ended July 31, 2010.

Costs and expenses increased from $226,415 in the three months ended July 31, 2010 to $1,613,667 in the three months ended July 31, 2011. The increase in costs and expenses is a net result of:

a) a decrease in legal, accounting and professional expense from $26,224 for the three months ended July 31, 2010 to $17,422 for the three months ended July 31, 2011, primarily as a result of a decrease in tax fees from $10,105 to $nil due to the Company filing a short year tax return in 2010.  

13

b)	an increase in administrative expenses from $15,109 in the three months ended July 31, 2010 to $78,511 in the three months ended July 31, 2011, as a result of (i) an increase in direct costs charged to the Company by AXIS which increased from $11,376 to $69,085 primarily as a result of increased management activities related to the Century Thrust Joint Venture Agreement and (ii) an increase in SEC filing costs which increased from $738 to $4,029.
c)	an increase in stock based compensation from $nil in the three months ended July 31, 2010 to $662,754 in the three months ended July 31, 2011. In December 2010 and May 2011, the Company issued options over shares of Common Stock to employees under the 2010 Equity Incentive Plan. See note 8 to the financial statements included in Item 1.
d)	an increase in exploration expenditure expense from $185,082 for the three months ended July 31, 2010 to $854,980 for the three months ended July 31, 2011. The exploration costs include salaries for both our staff and contract field staff, accommodations, Laos office costs, field work expenditure and reviewing data on exploration targets in Laos. In relation to our Century Thrust Joint Venture, work commenced on the review of data and identification of potential exploration targets.

As a result of the foregoing, the loss from operations increased from $226,415 for the three months ended July 31, 2010 to $1,613,667 for the three months ended July 31, 2011.

The Company recorded a foreign currency exchange loss of $50,188 for the three months ended July 31, 2011 compared to a foreign currency exchange gain of $9,495 for the three months ended July 31, 2010, primarily due to revaluation of the advance from affiliate which is denominated in Australian dollars.

The Company recorded an increase in interest income from $nil for the three months ended July 31, 2010 to $42 for the three months ended July 31, 2011.

The net loss was $1,663,813 for the three months ended July 31, 2011 compared to a net loss of $216,920 for the three months ended July 31, 2010.

Nine months Ended July 31, 2011 vs. Nine months Ended July 31, 2010.

Costs and expenses increased from $667,874 in the nine months ended July 31, 2010 to $3,489,394 in the nine months ended July 31, 2011.

The increase in costs and expenses is a net result of:

a)	a decrease in legal, accounting and professional expense from $62,726 for the nine months ended July 31, 2010 to $55,743 for the nine months ended July 31, 2011, primarily as a result of a decrease in tax fees from $10,105 to $1,799 due to the Company filing a short year tax return in 2010.
b)	an increase in administrative costs from $63,754 in the nine months ended July 31, 2010 to $194,150 in the nine months ended July 31, 2011,as a result of (i) an increase in direct costs charged to the Company by AXIS from $46,462 to $154,340 primarily as a result of increased management activities related to the Century Thrust Joint Venture Agreement and (ii) an increase in SEC filing costs which increased from $4,571 to $13,351.
c)	an increase in stock based compensation from $nil in the nine months ended July 31, 2010 to $1,698,534 in the nine months ended July 31, 2011. In December 2010 and May 2011, the Company issued options over shares of Common Stock to employees under the 2010 Equity Incentive Plan. See note 8 to the financial statements included in Item 1.
d)	an increase in exploration expense from $441,381 for the nine months ended July 31, 2010 to $1,540,967 for the nine months ended July 31, 2011. The exploration costs include salaries for both our staff and contract field staff, accommodations, Laos office costs, field work expenditure and reviewing data on exploration targets in Laos. In relation to our Century Thrust Joint Venture, work commenced on the review of data and identification of potential exploration targets.
e)	a decrease in donations from $100,000 for the nine months ended July 31, 2010 to $nil for the nine months ended July 31, 2011. During the nine months ended July 31, 2010 we donated $100,000 to the typhoon victims in Southern Laos.

14

f) a decrease in interest expense from $13 for the nine months ended July 31, 2010 to $nil for the nine months ended July 31, 2011.  

As a result of the foregoing, the loss from operations increased from $667,874 for the nine months ended July 31, 2010 to $3,489,394 for the nine months ended July 31, 2011.

The Company recorded a foreign currency exchange loss of $254,438 for the nine months ended July 31, 2011 compared to a foreign currency exchange loss of $1,118 for the nine months ended July 31, 2010, primarily due to revaluation of the advance from affiliate which is denominated in Australian dollars.

The Company recorded an increase in interest income from $9 for the nine months ended July 31, 2010 to $88 for the nine months ended July 31, 2011.

The net loss was $3,743,744 for the nine months ended July 31, 2011 compared to a net loss of $668,983 for the nine months ended July 31, 2010.

Liquidity and Capital Resources

For the nine months ended July 31, 2011, net cash used in operating activities was $1,721,792 consisting primarily of the net loss from operations of $3,743,744, which was offset by a non-cash cost charge relating to employee options issued for stock based compensation of $1,698,534. Net cash used in investing activities was $374,466 being the cost of additional equipment and $290,000 in prepayment of option fees; and net cash provided by financing activities was $2,098,062 being advances from affiliates.

As of July 31, 2011 the Company has short term obligations of $112,881 comprising accounts payable and accruals.

The Company has $41,833 in cash at July 31, 2011.

The Company may fund up to $6.5 million in exploration expenditure, of which $1.125 million has already been funded, in order to acquire a 51% beneficial interest in the Century Thrust Joint Venture (“Joint Venture”). The Company has entered into a Deed of Agreement which grants the Company an option to purchase 20% of LIMO’s interest in the Joint Venture at a purchase price of $1.35 million, inclusive of option fees of $405,000. The Company has paid the first and second tranches of option fees of $67,500 and $202,500, respectively. The third option fee of $135,000 was paid in August 2011 after LIMO completed certain conditions detailed in the agreement. The Company has 60 days from the date of the last option payment to exercise the option to purchase 20% of the Joint Venture for $1.35 million, inclusive of the option fees of $405,000.

The Company’s ability to continue operations through 2011 is dependent upon future funding from affiliated entities, capital raisings, or its ability to commence revenue producing operations and positive cash flows.

The Company continues to search for additional sources of capital, as and when needed; however, there can be no assurance funding will be successfully obtained. Even if it is obtained, there is no assurance that it will not be secured on terms that are highly dilutive to existing shareholders.

Information Concerning Forward Looking Statements

This report and other reports, as well as other written and oral statements made or released by us, may contain forward looking statements. Forward looking statements are statements that describe, or that are based on, our current expectations, estimates, projections and beliefs. Forward looking statements are based on assumptions made by us, and on information currently available to us. Forward-looking statements describe our expectations today of what we believe is most likely to occur or may be reasonably achievable in the future, but such statements do not predict or assure any future occurrence and may turn out to be wrong. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. The words "believe," "anticipate," "intend," "expect," "estimate," "project", "predict", "hope", "should", "may", and "will", other words and expressions that have similar meanings, and variations of such words and expressions, among others, usually are intended to help identify forward-looking statements.

15

Forward-looking statements are subject to both known and unknown risks and uncertainties and can be affected by inaccurate assumptions we might make.  Risks, uncertainties and inaccurate assumptions could cause actual results to differ materially from historical results or those currently anticipated.  Consequently, no forward-looking statement can be guaranteed.  The potential risks and uncertainties that could affect forward looking statements include, but are not limited to:

● The risk factors set forth in Item 1A of the Company’s Annual Report on Form 10-K for the fiscal year ended October 31, 2010,  

● The risks and hazards inherent in the mineral exploration business (including environmental hazards, industrial accidents, weather or geologically related conditions),  

● The uncertainties inherent in our exploratory activities, including risks relating to permitting and regulatory delays,  

● The political, governmental and regulatory risks affecting mineral exploration activites in foreign countries,  

● The effects of environmental and other governmental regulations, and  

● Uncertainty as to whether financing will be available to enable further exploration and development.  

● Movements in foreign exchange rates,  

● Performance of information systems,  

● Ability of the Company to hire, train and retain qualified employees,  

● Our ability to enter into key exploration agreements and the performance of contract counterparties.  

In addition, other risks, uncertainties, assumptions, and factors that could affect the Company's results and prospects are described in this Quarterly Report on Form 10-Q and in the Company’s Annual Report on Form 10-K for the fiscal year ended October 31, 2010, including under the heading “Risk Factors” and elsewhere herein and therein and may further be described in the Company's prior and future filings with the Securities and Exchange Commission and other written and oral statements made or released by the Company.

We caution you not to place undue reliance on any forward-looking statements, which speak only as of the date of this document.  The information contained in this report is current only as of its date, and we assume no obligation to update any forward-looking statements.

Item 3.Quantitative and Qualitative Disclosures About Market Risk.

At July 31, 2011, the Company had no outstanding loan facilities.

The Company reports in US$ and holds cash in Australian dollars. At July 31, 2011, this amounted to A$28,864. A change in the exchange rate between the A$ and the US$ will have an effect on the amounts reported in the Company’s consolidated financial statements, and create a foreign exchange gain or loss. A movement of 1% in the A$ versus the US$ exchange rate will have a US$315 effect on the balance sheet and income statement.

Item 4.Controls and Procedures.

 a)Disclosure Controls and Procedures

Our principal executive officer and our principal financial officer evaluated the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934 as amended) as of the end of the period covered by this report. Based on that evaluation, such principal executive officer and principal financial officer concluded that, the Company’s disclosure controls and procedures were effective as of the end of the period covered by this report at the reasonable level of assurance.

16

 b)Change in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting during the second quarter of fiscal 2011 that materially affected, or are reasonably likely to materially affect, internal control over financial reporting.

 c)Other

We believe that a controls system, no matter how well designed and operated, cannot provide absolute assurance that the objectives of the controls system are met, and no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within a company have been detected. Therefore, a control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Our disclosure controls and procedures are designed to provide such reasonable assurances of achieving our desired control objectives, and our principal executive officer and principal financial officer have concluded, as of July 31, 2011, that our disclosure controls and procedures were effective in achieving that level of reasonable assurance.

17

PART II – OTHER INFORMATION

Item 1. Legal Proceedings.

Not Applicable

Item 1A. Risk Factors.

Not Applicable for smaller reporting company.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

Not Applicable

Item 3. Defaults Upon Senior Securities.

Not Applicable

Item 4. Removed and Reserved.

Not Applicable

Item 5. Other Information.

Not Applicable

Item 6. Exhibits.

(a)	Exhibit No.	Description
	31.1	Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 by Craig Anthony Michael
	31.2	Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 by Simon Joseph Lee
	32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of Sarbanes-Oxley act of 2002 by Craig Anthony Michael
	32.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of Sarbanes-Oxley act of 2002 by Simon Joseph Lee
	101	The following materials from the Aurum, Inc. Quarterly Report on Form 10-Q for the quarter ended July 31, 2011 formatted in Extensible Business Reporting Language (XBRL):  (i) the Statements of Operations, (ii) the Balance Sheets, (iii) the Statements of Cash Flows, (iv) Statement of Stockholders’ (Deficit) and (v) related notes.
		#101.INS XBRL Instance Document.
		#101.SCH XBRL Taxonomy Extension Schema Document.
		#101.CAL XBRL Taxonomy Extension Calculation Linkbase Document.
		#101.LAB XBRL Taxonomy Extension Label Linkbase Document.
		#101.PRE XBRL Taxonomy Extension Presentation Linkbase Document.
		#101.DEF XBRL Taxonomy Extension Definition Linkbase Document.
		_________________
		# Filed herewith.  In accordance with Rule 406T of Regulation S-T, these interactive data files are deemed “not filed” for purposes of section 18 of the Exchange Act, and otherwise are not subject to liability under that section.

18

(FORM 10-Q)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Aurum, Inc.

By:   /s/ Joseph I Gutnick  

Joseph I. Gutnick

Executive Chairman, President and

Director

By:  /s/ Craig Michael           

Craig Michael

Director and

Chief Executive Officer

(Principal Executive Officer)

By:  /s/ Simon Lee                  

Simon Lee

Chief Financial Officer

(Principal Financial Officer)

Dated September 13, 2011

19

EXHIBIT INDEX

Exhibit No.	Description
31.1	Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 by Craig Anthony Michael
31.2	Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 by Simon Joseph Lee
32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of Sarbanes-Oxley act of 2002 by    Craig Anthony Michael
32.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of Sarbanes-Oxley act of 2002 by    Simon Joseph Lee

20

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO

SECURITIES EXCHANGE ACT RULE 13A-14(a)

I, Craig Michael, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of Aurum, Inc. (“Registrant”);
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;
4.	The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e) and internal controls over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:
	(a)	designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	(b)	designed such internal controls over financial reporting, or caused such internal controls over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	(c)	evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	(d)	disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and
5.	The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s Board of Directors:
	(a)	all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and
	(b)	any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Date:  September 13, 2011

/s/ Craig A Michael                                         

Name:  Craig A Michael

Title: Director and Chief Executive Officer

(Principal Executive Officer)

21

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO

SECURITIES EXCHANGE ACT RULE 13A-14(a)

I, Simon Lee, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of Aurum, Inc. (“Registrant”);
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;
4.	The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e) and internal controls over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:
	(a)	designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	(b)	designed such internal controls over financial reporting, or caused such internal controls over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	(c)	evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	(d)	disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and
5.	The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s Board of Directors:
	(a)	all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and
	(b)	any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Date:  September 13, 2011

/s/ Simon Lee                                                 

Name: Simon Lee

Title: Chief Financial Officer

(Principal Financial Officer)

22

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report on Form 10-Q of Aurum, Inc. (the “Company”) for the three and nine months ended July 31, 2011 as filed with the Securities and Exchange Commission on the date hereof (the “report”), the undersigned, Craig Michael, Chief Executive Officer of the Company, certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 that:

(1)	The report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)	The information contained in the report fairly presents, in all material respects, the financial condition and result of operations of the Company.

Date:    September 13, 2011

/s/ Craig A Michael                                         

Name:  Craig A Michael

Title: Director and Chief Executive Officer

(Principal Executive Officer)

23

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report on Form 10-Q of Aurum, Inc. (the “Company”) for the three and nine months ended July 31, 2011 as filed with the Securities and Exchange Commission on the date hereof (the “report”), the undersigned, Simon Lee, Chief Financial Officer of the Company, certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 that:

(1)	The report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)	The information contained in the report fairly presents, in all material respects, the financial condition and result of operations of the Company.

Date:    September 13, 2011

/s/ Simon Lee                                                 

Name: Simon Lee

Title: Chief Financial Officer

(Principal Financial Officer)

24

XML



Balance Sheet (An Exploration Stage Company) (Parenthetical) (USD $)	Jul. 31, 2011	Oct. 31, 2010
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorised	500,000,000	500,000,000
Common stock, shares issued	105,600,000	105,600,000
Common stock, shares outstanding	105,600,000	105,600,000

XML



Statements of Operations (An Exploration Stage Company) (Unaudited) (USD $) Share data in Thousands, except Per Share data	3 Months Ended		9 Months Ended		34 Months Ended
	Jul. 31, 2011	Jul. 31, 2010	Jul. 31, 2011	Jul. 31, 2010	Jul. 31, 2011
Revenues	$ 0	$ 0	$ 0	$ 0	$ 0
Costs and expenses:
Legal, accounting and professional	17,422	26,224	55,743	62,726	165,952
Administration expenses	78,511	15,109	194,150	63,754	334,484
Stock based compensation	662,754		1,698,534		1,698,534
Exploration expenditure	854,980	185,082	1,540,967	441,381	2,176,586
Donations				100,000	100,000
Interest expense				13	14
Total costs and expenses	1,613,667	226,415	3,489,394	667,874	4,475,570
(Loss) from operations	(1,613,667)	(226,415)	(3,489,394)	(667,874)	(4,475,570)
Foreign currency exchange (loss) gain	(50,188)	9,495	(254,438)	(1,118)	(339,092)
Other income - interest	42		88	9	113
(Loss) before income taxes	(1,663,813)	(216,920)	(3,743,744)	(668,983)	(4,814,549)
Provision for income taxes	0	0	0	0	0
Net (loss)	$ (1,663,813)	$ (216,920)	$ (3,743,744)	$ (668,983)	$ (4,814,549)
Basic and diluted net (loss) per common equivalent shares	$ (0.02)	$ 0.00	$ (0.04)	$ (0.01)	$ (0.05)
Weighted average number of common equivalent shares	105,600	105,600	105,600	105,600	103,951

XML



Document and Entity Information	9 Months Ended
	Jul. 31, 2011	Sep. 07, 2011
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jul. 31, 2011
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	Q3
Trading Symbol	AURM
Entity Registrant Name	Aurum, Inc.
Entity Central Index Key	0001450708
Current Fiscal Year End Date	--10-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		105,600,000

XML



GOING CONCERN

9 Months Ended

Jul. 31, 2011

GOING CONCERN

(5)           GOING CONCERN

The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which contemplate continuation of Aurum as a going concern. Aurum has incurred net losses since inception and may continue to incur substantial and increasing losses for the next several years, all of which raises substantial doubt as to its ability to continue as a going concern.

In addition, Aurum is reliant on loans and advances from corporations affiliated with the President of Aurum. Based on discussions with these affiliate companies, Aurum believes this source of funding will continue to be available. Other than the arrangements noted above, Aurum has not confirmed any other arrangement for ongoing funding. As a result Aurum may be required to raise funds by additional debt or equity offerings in order to meet its cash flow requirements during the forthcoming year.

The retained deficit of the Company from inception (September 2008) through July 31, 2011 amounted to $4,815,149.

XML



EXPLORATION STAGE COMPANY

9 Months Ended

Jul. 31, 2011

EXPLORATION STAGE COMPANY

(10)         EXPLORATION STAGE COMPANY

As a result of the Company’s focus on mineral exploration, it is considered an exploration stage company and accordingly reports operations, stockholders deficit and cash flows since inception through the date that revenues are generated from management’s intended operations. Since inception, the Company has incurred an operating loss of $4,814,549. The Company’s working capital has been primarily generated through the sales of common stock as well as advances from an affiliated entity.

XML



ORGANIZATION AND BUSINESS

9 Months Ended

Jul. 31, 2011

ORGANIZATION AND BUSINESS

(1)    ORGANIZATION AND BUSINESS

Aurum, Inc. ("Aurum” or the “Company") is a Delaware corporation, originally incorporated in Florida as Liquid Financial Engines, Inc. The principal stockholder of Aurum is Golden Target Pty Ltd., an Australian corporation (“Golden”), which owned 96.21% of Aurum as of July 31, 2011.

On January 20, 2010, the Company re-incorporated in the state of Delaware (the “Reincorporation”) through a merger involving Liquid Financial Engines Inc. (“Liquid”) and Aurum, Inc., a Delaware Corporation that was a wholly owned subsidiary of Liquid. The Reincorporation was effected by merging Liquid with Aurum, with Aurum being the surviving entity. For financial reporting purposes Aurum is deemed a successor to Liquid.

In July 2009, Golden acquired a 96% interest in Aurum from certain stockholders. In connection therewith, the Company appointed a new President/Chief Executive Officer and Chief Financial Officer/Secretary and a new sole Director. The sole director and stockholder of Golden is also the President of the Company.

In 2009, the Company shifted its focus to mineral exploration for gold and copper in the Lao Peoples Democratic Republic (Lao P.D.R or Laos).  Laos is known by the Company to have significant potential for gold and copper discoveries and is a highly under explored nation with respect to all mineral commodities.

In December 2010, the Company executed a Management and Shareholders Agreement with Argonaut Overseas Investments Ltd (“AOI”), an indirectly wholly owned Subsidiary of Argonaut Resources N.L., in respect to Argonaut’s 70% held Century Concession in Laos.

The agreement appoints Aurum as the manager of the Century Thrust Joint Venture Agreement (“Joint Venture”) and the Company has the right to earn 72.86% of AOI’s interest in the Joint Venture which is equivalent to a 51% beneficial interest in the Century Concession. The agreement between Aurum and AOI includes a one year assessment period, ending in December 2011, during which Aurum will conduct initial exploration to assess the Tenement.

On February 10, 2011, the Company entered into a Deed of Agreement with the shareholders of the Lao Inter Mining Options Ltd (“LIMO”) which grants Aurum an option to purchase LIMO’s 20% interest in the Joint Venture. This Agreement, in conjunction with the Management and Shareholders Agreement with AOI enables Aurum to acquire, at its option, a 71% beneficial interest in the Century Concession (see note 14).

The Company’s ability to continue operations through the remainder of 2011 is dependent upon future funding from affiliated entities, capital raisings, or its ability to commence revenue producing operations and positive cash flows.

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STOCKHOLDERS EQUITY

9 Months Ended

Jul. 31, 2011

STOCKHOLDERS EQUITY

(7)           STOCKHOLDERS EQUITY

In September 2008, 96,000,000 shares of common stock were issued to the Company’s founder raising $9,000.

In March 2009, the Company raised $12,000 in a registered public offering of 9,600,000 shares of common stock share pursuant to a prospectus dated January 30, 2009.

On September 29, 2009 the Company’s Board of Directors declared an 8-for-1 stock split in the form of a stock dividend that was payable in October 2009 to stockholders of record as of October 23, 2009. The Company has accounted for this bonus issue as a stock split and accordingly, all share and per share data has been retroactively restated.

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CASH

9 Months Ended

Jul. 31, 2011

CASH

(12)         CASH

The Company maintains cash deposits with financial institutions in Australia and in Laos (USD).  Cash deposits maintained in Australian dollars are translated into US dollars at the period end exchange rate with the related adjustment recognized in statements of operations.

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ISSUE OF OPTIONS UNDER EQUITY INCENTIVE PLAN

9 Months Ended

Jul. 31, 2011

ISSUE OF OPTIONS UNDER EQUITY INCENTIVE PLAN

(8)           ISSUE OF OPTIONS UNDER EQUITY INCENTIVE PLAN

(i) Effective December 13, 2010, the Company issued 2,500,000 options over shares of Common Stock to employees under the 2010 Equity Incentive Plan that has been adopted by the Directors of the Company. The options vested 1/3 on December 13, 2010, 1/3 will vest on November 17, 2011 and the balance on November 17, 2012. The exercise price of the options is US$1.00 and the latest exercise date for the options is November 17, 2020.  

The Company has accounted for all options issued based upon their fair market value using the Binomial pricing model.

An external consultant has calculated the fair value of the 2,500,000 options using the Binomial valuation method using the following inputs:

Grant date	Dec 13, 2010	Dec 13, 2010	Dec 13, 2010
Grant date share price	US$1.10	US$1.10	US$1.10
Vesting date	Dec 13, 2010	Nov 17, 2011	Nov 17, 2012
Expected life in years	4.5	5.0	5.5
Risk-free rate	1.91%	1.91%	1.91%
Volatility	95%	95%	95%
Exercise price	US$1.00	US$1.00	US$1.00
Call option value	US$0.78	US$0.81	US$0.83

	Options		Option Price Per Share US$		Weighted Average Exercise Price US$
Outstanding at November 1, 2010		-		-		-
Granted		2,500,000		1.00		1.00
Forfeited		-		-		-
Outstanding at July 31, 2011		2,500,000		1.00		1.00

	The exercise price is US$1.00 per option. The weighted average per option fair value of options granted during fiscal 2011 was US$0.81 and the weighted average remaining contractual life of those options is 9½ years. There are 833,333 options currently exercisable.
	The total value of the outstanding unvested options equates to $723,700 and is being amortised over the vesting periods.
	For the nine months ended July 31, 2011, the amortization amounted to $1,292,967.
(ii)	In May 2011, the Company issued 750,000 options over shares of Common Stock to employees under the 2010 Equity Incentive Plan that has been adopted by the Directors of the Company. The options vested 1/3 upon grant date, 1/3 will vest on February 1, 2012 and the balance on February 1, 2013. The exercise price of the options is US$1.00 and the latest exercise date for the options is February 1, 2018.
	The Company has accounted for all options issued based upon their fair market value using the Binomial pricing model.
	An external consultant has calculated the fair value of the 750,000 options using the Binomial valuation method using the following inputs:

Grant date	May 1, 2011	May 1, 2011	May 1, 2011
Grant date share price	US$1.30	US$1.30	US$1.30
Vesting date	May 1, 2011	Feb 1, 2012	Feb 1, 2013
Expected life in years	3.5	4.0	4.5
Risk-free rate	1.04%	2.02%	2.02%
Volatility	100%	100%	100%
Exercise price	US$1.00	US$1.00	US$1.00
Call option value	US$0.91	US$0.95	US$0.99

	Options		Option Price Per Share US$		Weighted Average Exercise Price US$
Outstanding at November 1, 2010		-		-		-
Granted		750,000		1.00		1.00
Forfeited		-		-		-
Outstanding at July 31, 2011		750,000		1.00		1.00

The exercise price is US$1.00 per option. The weighted average per option fair value of options granted during fiscal 2011 was US$0.95 and the weighted average remaining contractual life of those options is 6½ years. There are 250,000 options currently exercisable.

The total value of the outstanding unvested options equates to $306,933 and is being amortised over the vesting periods.

For the nine months ended July 31, 2011, the amortization amounted to $405,567.

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INCOME TAXES

9 Months Ended

Jul. 31, 2011

INCOME TAXES

(6)           INCOME TAXES

Aurum files its income tax returns on an accrual basis.

The Company follows the accounting requirements associated with uncertainty in income taxes using the provisions of FASB ASC 740, Income Taxes. Using that guidance, tax positions initially need to be recognized in the financial statements when it is more-likely-than-not the positions will be sustained upon examination by the tax authorities. It also provides guidance for derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. As of July 31, 2011, the Company has no uncertain tax positions that qualify for either recognition or disclosure in the financial statements.

The Company is required to file tax returns in the United States. The Company has available net operating loss carry forwards which are subject to limitations aggregating approximately US$700,000 which would expire in years 2029 through 2030.

The Company’s tax returns for all years since 2008 remain open to examination by the respective tax authorities.  There are currently no tax examinations in progress.

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Statements of Stockholders' Equity (Deficit) (An Exploration Stage Company) (Unaudited) (Parenthetical)	9 Months Ended
	Jul. 31, 2011
Amortization under 2010 equity incentive plan, options	3,250,000

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RECENT ACCOUNTING PRONOUNCEMENTS

9 Months Ended

Jul. 31, 2011

RECENT ACCOUNTING PRONOUNCEMENTS

(2)           RECENT ACCOUNTING PRONOUNCEMENTS

In January 2010, the FASB issued ASU 2010-06, Fair Value Measurements and Disclosures (Topic 820) – Improving Disclosures about Fair Value Measurements. This ASU requires new disclosures and clarifies certain existing disclosure requirements about fair value measurements. ASU 2010-06 requires a reporting entity to disclose significant transfers in and out of Level 1 and Level 2 fair value measurements, to describe the reasons for the transfers and to present separately information about purchases, sales, issuances and settlements for fair value measurements using significant unobservable inputs. 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, which is effective for interim and annual reporting periods beginning after December 15, 2010; early adoption is permitted. The adoption of ASU 2010-06 did not have a material impact on our financial position, results of operations or cash flows.

In May 2011, the Financial Accounting Standards Board (FASB) issued ASU No. 2011-04, “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and International Financial Reporting Standards (“IFRSs”)”. The amendments in this Update generally represent clarifications of Topic 820, but also include some instances where a particular principle or requirement for measuring fair value or disclosing information about fair value measurements has changed. This Update results in common principles and requirements for measuring fair value and for disclosing information about fair value measurements in accordance with U.S. GAAP and IFRSs. The amendments in this Update are to be applied prospectively. For public entities, the amendments are effective during interim and annual periods beginning after December 15, 2011. Early application by public entities is not permitted. The Company does not expect this guidance to have a significant impact on our consolidated financial position, results of operations or cash flows.

In June 2011, the FASB issued Accounting Standards Update (“ASU”) 2011-05, Presentation of Comprehensive Income. This ASU is intended to increase the prominence of other comprehensive income in financial statements by presenting the components of net income and other comprehensive income in one continuous statement, referred to as the statement of comprehensive income, or in two separate, but consecutive statements. The new guidance eliminates the current option to report other comprehensive income and its components in the statement of stockholders’ equity. This new guidance is effective for fiscal years and interim periods beginning after December 15, 2011. While the new guidance changes the presentation of comprehensive income, there are no changes to the components that are recognized in net income or other comprehensive income under current accounting guidance; therefore, adoption of the new guidance in the first quarter of fiscal 2012 will not have any impact on the Company’s consolidated financial position, results of operations or cash flows.

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PROPERTY AND EQUIPMENT

9 Months Ended

Jul. 31, 2011

PROPERTY AND EQUIPMENT

(3)           PROPERTY AND EQUIPMENT

Property and equipment is stated at cost. The Company records depreciation and amortization, when appropriate, using the straight-line method over the estimated useful lives of the assets. Expenditures for maintenance and repairs are charged to expense as incurred. Additions, major renewals and replacements that increase the property’s useful life are capitalized. Property sold or retired, together with the related accumulated depreciation is removed from the appropriate accounts and the resultant gain or loss is included in net income (loss).

		At July 31, 2011							At October 31, 2010
	Depreciable Life (in years)	Cost $		Accumulated Depreciation $			Net Book Value $		Cost $		Accumulated Depreciation $			Net Book Value $
Office Equipment	1-2		3,830		(2,901	)		929		3,830		(1,469	)		2,362
Computer Equipment	1-3		101,053		(23,269	)		77,784		17,237		(3,921	)		13,316
Furniture	1-2		650		(73	)		577
			105,533		(26,243	)		79,290		21,067		(5,390	)		15,677

The depreciation expense for the nine months ended July 31, 2011 amounted to $20,853 and for the nine months ended July 31, 2010 amounted to $3,408.

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NET LOSS PER SHARE

9 Months Ended

Jul. 31, 2011

NET LOSS PER SHARE

(11)        NET LOSS PER SHARE

Basic income (loss) per share is computed by dividing net profit (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share is similarly calculated using the treasury stock method except that the denominator is increased to reflect the potential dilution that would occur if dilutive securities at the end of the applicable period were exercised. Options to acquire 1,083,333 shares of common stock were not included in the diluted weighted average shares outstanding as such effects would be anti-dilutive.

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AFFILIATE TRANSACTIONS

9 Months Ended

Jul. 31, 2011

AFFILIATE TRANSACTIONS

(4)           AFFILIATE TRANSACTIONS

The Company entered into an agreement with AXIS Consultants Pty Ltd (“AXIS”) to provide management and administration services to the Company. AXIS is affiliated through common management. The Company is one of ten affiliated companies to which AXIS provides services. Each of the companies has some common Directors, officers and shareholders. Currently, there are no material arrangements or planned transactions between the Company and any of the affiliated companies other than AXIS.

During the nine months ended July 31, 2011, AXIS provided services in accordance with the services agreement, incurred direct costs on behalf of the Company and provided funding of $2,098,062. The amounts owed to AXIS as of July 31, 2011 and October 31, 2010 was $3,432,742 and $1,079,272 respectively and are reflected in non current liabilities - advance from affiliates. During the nine months ended July 31, 2011 and 2010, AXIS did not charge interest.

The Company intends to repay these amounts with funds raised either via additional debt or equity offerings, but as this may not occur within the next 12 months. AXIS has agreed not to call the advance within the next twelve months and accordingly the Company has classified the amounts payable as non-current in the accompanying balance sheet.

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OPTION AGREEMENT

9 Months Ended

Jul. 31, 2011

OPTION AGREEMENT

(14)        OPTION AGREEMENT

Pursuant to the LIMO Deed, as amended, the Company has paid the first and second tranches of Option Fees of $270,000, along with associated costs of $20,000 (see note 13).

The third Option fee of $135,000, was paid in August, 2011, after LIMO completed certain conditions detailed in the agreement. The Company has 60 days from the date of the last option payment to exercise the option to purchase 20% of the Joint Venture for $1.35 million, inclusive of the option fees of $405,000.

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Statements of Stockholders' Equity (Deficit) (An Exploration Stage Company) (Unaudited) (USD $)	Total	Common Stock	Additional Paid-in Capital	Retained (Deficit) during exploration stage	Retained (Deficit) prior to exploration activities
Beginning Balance at Sep. 29, 2008
Issuance of shares (in shares)		96,000,000
Issuance of shares	$ 9,000	$ 9,600			$ (600)
Net (loss)	(12)				(12)
Ending Balance at Oct. 31, 2008	8,988	9,600			(612)
Ending Balance (in shares) at Oct. 31, 2008		96,000,000
Issuance of shares (in shares)		9,600,000
Issuance of shares	12,000	960	11,040
Net (loss)	(89,397)				(89,397)
Ending Balance at Oct. 31, 2009	(68,409)	10,560	11,040		(90,009)
Ending Balance (in shares) at Oct. 31, 2009		105,600,000
Net (loss)	(981,396)			(981,396)
Ending Balance at Oct. 31, 2010	(1,049,805)	10,560	11,040	(981,396)	(90,009)
Ending Balance (in shares) at Oct. 31, 2010		105,600,000
Amortization of 3,250,000 options under 2010 equity incentive plan	1,698,534		1,698,534
Net (loss)	(3,743,744)			(3,743,744)
Ending Balance at Jul. 31, 2011	$ (3,095,015)	$ 10,560	$ 1,709,574	$ (4,725,140)	$ (90,009)
Ending Balance (in shares) at Jul. 31, 2011		105,600,000

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SUBSEQUENT EVENTS

9 Months Ended

Jul. 31, 2011

SUBSEQUENT EVENTS

(15)         SUBSEQUENT EVENTS

The Company has evaluated significant events subsequent to the balance sheet date through the date the financial statements were issued and has determined that there were no subsequent events or transactions which would require recognition or disclosure in the financial statements, other than herein.

On August 15, 2011, pursuant to the LIMO Deed, the Company paid the third Option fee of $135,000.

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Statements of Cash Flows (An Exploration Stage Company) (Unaudited) (USD $)	9 Months Ended		34 Months Ended
	Jul. 31, 2011	Jul. 31, 2010	Jul. 31, 2011
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss)	$ (3,743,744)	$ (668,983)	$ (4,814,549)
Adjustments to reconcile net loss to net cash (used) in operating activities:
Employee options issued for stock based compensation	1,698,534		1,698,534
Foreign currency exchange loss	254,438	364	337,074
Depreciation	20,853	3,408	26,243
Net change in:
Prepayments	(28,285)	7,997	(29,985)
Receivables	(9,500)		(9,500)
Advances - affiliate		12,971
Accounts payable and accrued expenses	85,912	(23,792)	112,881
Net Cash (Used) in Operating Activities	(1,721,792)	(668,035)	(2,679,302)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment	(84,466)	(10,227)	(105,533)
Option fees paid	(290,000)		(290,000)
Net Cash (Used) in Investing Activities	(374,466)	(10,227)	(395,533)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of stock			21,000
Borrowings from affiliate	2,098,062	691,724	3,096,310
Net Cash Provided by Financing Activities	2,098,062	691,724	3,117,310
Effect of exchange rate on cash	970	(364)	(642)
Net increase in cash	2,774	13,098	41,833
Cash at beginning of period	39,059	189
Cash at end of period	41,833	13,287	41,833
Supplemental Disclosures
Interest Paid		$ 13	$ 14

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FAIR VALUE OF FINANCIAL INSTRUMENTS

9 Months Ended

Jul. 31, 2011

FAIR VALUE OF FINANCIAL INSTRUMENTS

(9)           FAIR VALUE OF FINANCIAL INSTRUMENTS

The Company’s financial instruments consist of cash, receivables and advances from affiliate. The carrying amounts of cash and receivables approximates its fair values because of the short term maturities of those instruments. The fair value of advances from affiliate is not readily determinable as no similar market exists for these instruments and it doesn’t have a specified date of repayment.

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COMMITMENTS

9 Months Ended

Jul. 31, 2011

COMMITMENTS

(13)        COMMITMENTS

Pursuant to the Century Thrust Joint Venture Agreement (Joint Venture), the Company may fund up to $6.5 million in explorationexpenditure, of which $1,125 million has already been funded, in order to acquire a 51% beneficial interest in the Joint Venture. Should Aurum wish to execute its rights under the agreement, it may be required to expend up to $5.38 million on the Century Thrust Concession (see note 1).

The Company has entered into and thereafter amended a Deed of Agreement (“the LIMO Deed”) which grants the Company an option to purchase 20% of Lao Inter Mining Options Ltd’s (“LIMO”) interest in the Joint Venture at a purchase price of $1.35 million, inclusive of option fees of $405,000. The Company has paid the first and second tranches of option fees of $67,500 and $202,500, respectively, as at July 31, 2011 and paid the third tranche of $135,000 in August 2011.

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Balance Sheet (An Exploration Stage Company) (USD $)	Jul. 31, 2011	Oct. 31, 2010
Current Assets:
Cash	$ 41,833	$ 39,059
Receivables	9,500
Prepayments	29,985	1,700
Prepaid option fees (Note 14)	290,000
Total Current Assets	371,318	40,759
Non Current Assets:
Property and equipment (Note 3)	79,290	15,677
Total Non Current Assets	79,290	15,677
Total Assets	450,608	56,436
Current Liabilities:
Accounts payable and accrued expenses	112,881	26,969
Total Current Liabilities	112,881	26,969
Non Current Liabilities:
Advances from affiliate (Note 4)	3,432,742	1,079,272
Total Non Current Liabilities	3,432,742	1,079,272
Total Liabilities	3,545,623	1,106,241
Stockholders' Equity (Deficit) :
Common stock: $.0001 par value 500,000,000 shares authorised, and 105,600,000 shares issued and outstanding at July 31, 2011 and October 31, 2010.	10,560	10,560
Additional Paid-in-Capital	1,709,574	11,040
Retained (Deficit) during exploration stage	(4,725,140)	(981,396)
Retained (Deficit) prior to exploration activities	(90,009)	(90,009)
Total Stockholders' Equity (Deficit)	(3,095,015)	(1,049,805)
Total Liabilities and Stockholders' Equity (Deficit)	$ 450,608	$ 56,436