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  April 30, 2013

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.  xYes  oNo

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  o 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  o Accelerated filer  o Non-accelerated filer  o 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).  o  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 June 12, 2013.

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	12
Item 3	Quantitative and Qualitative Disclosure about Market Risk	16
Item 4	Controls and Procedures	16
PART II	OTHER INFORMATION
Item 1	Legal Proceedings	17
Item 1A	Risk Factors	17
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	17
Item 3	Defaults Upon Senior Securities	17
Item 4	Mine Safety Disclosures	17
Item 5	Other Information	17
Item 6	Exhibits	17

SIGNATURES		18
EXHIBIT INDEX		19
Exh. 31.1	Certification	20
Exh. 31.2	Certification	21
Exh. 32.1	Certification	22
Exh. 32.2	Certification	23

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 statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended October 31, 2012.

In the opinion of management, all adjustments, consisting of normal recurring adjustments necessary to present fairly the financial position of the Company as of April 30, 2013, the results of its operations for the three and six month periods ended  April 30, 2013 and April 30, 2012 and for the cumulative period September 29, 2008 (inception) through April 30, 2013, and the changes in its cash flows for the six month periods ended April 30, 2013 and April 30, 2012 and for the cumulative period September 29, 2008 (inception) through April 30, 2013, 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

	April 30, 2013 US$ (unaudited)			October 31, 2012 US$
ASSETS
Current Assets:
Cash		18,693			18,721
Receivables		19,800			14,760
Prepayments		16,245			24,298
Total Current Assets		54,738			57,779
Non Current Assets:
Property and equipment (Note 3)		12,059			28,841
Total Non Current Assets		12,059			28,841
Total Assets		66,797			86,620
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current Liabilities:
Accounts payable and accrued expenses		190,070			162,670
Total Current Liabilities		190,070			162,670
Non Current Liabilities:
Advances from affiliates (Note 4)		7,482,049			6,630,197
Total Non Current Liabilities		7,482,049			6,630,197
Total Liabilities		7,672,119			6,792,867
Stockholders’ Equity (Deficit) :
Common stock: $.0001 par value 500,000,000 shares authorised, and 105,600,000 shares issued and outstanding at  April 30, 2013 and October 31, 2012		10,560			10,560
Additional Paid-in-Capital		2,740,207			2,663,669
Retained (Deficit) during exploration stage		(10,266,080	)		(9,290,467	)
Retained (Deficit) prior to exploration activities		(90,009	)		(90,009	)
Total Stockholders’ Equity (Deficit)		(7,605,322	)		(6,706,247	)
Total Liabilities and Stockholders’ Equity (Deficit)		66,797			86,620
See Notes to Financial Statements

3

AURUM, INC.

(An Exploration Stage Company)

Statements of Operations

(Unaudited)

	For the three months ended April 30, 2013			For the three months ended April 30, 2012			For the six months ended April 30, 2013			For the six months ended April 30, 2012			For the period from inception September 29, 2008 to  April 30, 2013
	US$			US$			US$			US$			US$
Revenues	$	-		$	-		$	-		$	-		$	-
Costs and expenses:
Legal, accounting and professional		16,455			9,217			25,265			26,827			249,466
Administration expenses		69,853			67,663			136,860			192,689			903,360
Consultants salaries - stock based compensation		384			120,714			76,538			401,919			2,729,167
Exploration expenditure		437,403			1,071,968			758,984			1,650,324			6,195,898
Donations		-			-			-			-			100,000
Interest expense		-			-			1,215			-			1,229
Total costs and expenses		524,095			1,269,562			998,862			2,271,759			10,179,120
(Loss) from operations		(524,095	)		(1,269,562	)		(998,862	)		(2,271,759	)		(10,179,120	)
Foreign currency exchange gain (loss)		78,150			53,813			23,249			68,060			(176,503	)
Other income - interest		-			2			-			3			134
(Loss) before income taxes		(445,945	)		(1,215,747	)		(975,613	)		(2,203,696	)		(10,355,489	)
Provision for income taxes		-			-			-			-			-
Net (loss)		(445,945	)		(1,215,747	)		(975,613	)		(2,203,696	)		(10,355,489	)
Basic and diluted net (loss) per common equivalent shares		(0.00	)		(0.01	)		(0.01	)		(0.02	)		(0.10	)
Weighted average number of common equivalent shares (in 000’s)		105,600			105,600			105,600			105,600			104,579
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) rior 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		-		-		2,005,676		-			-			2,005,676
Net (loss)		-		-		-		(4,777,291	)		-			(4,777,291	)
Balance, October 31, 2011		105,600,000		10,560		2,016,716		(5,758,687	)		(90,009	)		(3,821,420	)
Amortization of 3,250,000 options under  2010 equity incentive plan		-		-		646,953		-			-			646,953
Net (loss)		-		-				(3,531,780	)		-			(3,531,780	)
Balance, October 31, 2012		105,600,000		10,560		2,663,669		(9,290,467	)		(90,009	)		(6,706,247	)
Amortization of 3,250,000 options under  2010 equity incentive plan		-		-		76,538		-			-			76,538
Net (loss)		-		-				(975,613	)		-			(975,613	)
Balance, April 30, 2013		105,600,000		10,560		2,740,207		(10,266,080	)		(90,009	)		(7,605,322	)
See Notes to Financial Statements

5

AURUM, INC.

(An Exploration Stage Company)

Statements of Cash Flows

(Unaudited)

	Six months ended April 30, 2013 US$			Six months ended April 30, 2012 US$			For the period from inception September 29, 2008 to April 30, 2013 US$
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss)		(975,613	)		(2,203,696	)		(10,355,489	)
Adjustments to reconcile net (loss) to net cash (used)
in operating activities:
Employee options issued for stock based compensation		76,538			401,919			2,729,167
Foreign currency exchange (gain) loss		(23,249	)		(68,060	)		174,487
Depreciation		16,782			20,634			94,396
Net change in:
Prepayments		8,053			447,408			(16,245	)
Receivables		(5,040	)		(4,154	)		(19,800	)
Accounts payable and accrued expenses		27,400			(47,203	)		190,070
Net Cash (Used) in Operating Activities		(875,129	)		(1,453,152	)		(7,203,414	)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment		-			-			(106,455	)
Net Cash (Used) in Investing Activities		-			-			(106,455	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of stock		-			-			21,000
Borrowings from affiliate		879,098			1,457,143			7,294,449
Net Cash Provided by Financing Activities		879,098			1,457,143			7,315,449
Effect of exchange rate  on cash		(3,997	)		(3,816	)		13,113
Net increase/(decrease) in cash		(28	)		175			18,693
Cash at beginning of period		18,721			10,133			-
Cash at end of period		18,693			10,308			18,693
Supplemental Disclosures Interest Paid		-			-			14

See Notes to Financial Statements

6

AURUM, INC.

(An Exploration Stage Company)

Notes to Financial Statements

April 30, 2013

(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 April 30, 2013.

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 and CEO of the Company.

Commencing August 2009, the Company decided to focus on mineral exploration for gold and copper in the Lao Peoples Democratic Republic (Lao P.D.R or Laos). The Company is considered to be in the exploration stage.

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 gives the Company 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. In order to acquire this interest, Aurum may be required to spend US$6.5 million on exploration within the five year period ending December 10, 2015.

On February 10, 2011, the Company entered into a Deed of Agreement with the shareholders of the Lao Inter Mining Options Ltd (“LIMO”) which granted 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 enabled Aurum to acquire, at its option, a 71% beneficial interest in the Century Concession. On October 24, 2011, the Company executed a Deed of Variation of Call Option extending the exercise date of Option to April 24, 2012, for a consideration of $55,000 for each month extended (see note 14). In April 2012, the Company decided not to exercise the option to purchase 20% of the Joint Venture.

The Company’s ability to continue operations through the remainder of 2013 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

The Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

7

(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 April 30, 2013							At October 31, 2012
	Depreciable Life (in years)	Cost $		Accumulated Depreciation $			Net Book Value $		Cost $		Accumulated Depreciation $			Net Book Value $
Office Equipment	1-2		3,830		(3,830	)		-		3,830		(3,830	)		-
Computer Equipment	1-3		101,975		(89,924	)		12,051		101,975		(73,303	)		28,672
Furniture	1-2		650		(642	)		8		650		(481	)		169
			106,455		(94,396	)		12,059		106,455		(77,614	)		28,841

The depreciation expense for the six months ended April 30, 2013 amounted to $16,782 and for the six months ended April 30, 2012 amounted to $20,634.

(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 six months ended April 30, 2013, AXIS provided services in accordance with the services agreement, incurred direct costs on behalf of the Company and provided funding of $792,852.  In addition, the Manager of the Laos operations advanced the Company $59,000. The amounts owed to affiliates as of April 30, 2013 and October 31, 2012 were $7,482,049 and $6,630,197 respectively and are reflected in non-current liabilities - advance from affiliates. Included in these amounts is $232,500 and $173,500 respectively being funds advanced by the Manager of the Laos operations. During the three and six months ended April 30, 2013 and 2012, the affiliates did not charge interest.

The Company intends to repay these amounts with funds raised either via additional debt or equity offerings. Both affiliates have 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.

8

The retained deficit of the Company from inception (September 2008) through April 30, 2013 amounted to approximately $10.3 million.

(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 de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. As of April 30, 2013, 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$1,405,000 which would expire in various years through 2032.

The Company’s tax returns for all years since 2009 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 vested on November 17, 2011 and the balance vested 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

9

	Options		Option Price Per Share US$		Weighted Average Exercise Price US$
Outstanding at November 1, 2010		-		-		-
Granted		2,500,000		1.00		1.00
Outstanding at October 31, 2012 and April 30, 2013		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 2013 was US$0.81 and the weighted average remaining contractual life of those options is 7 1/2 years. At April 30, 2013 there are 2,500,000 options exercisable.
	For the six months ended April 30, 2013, the amortization amounted to $40,686.
(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 vested on February 1, 2012 and the balance vested 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	2.02%	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
Outstanding at October 31, 2012 and April 30, 2013		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 2013 was US$0.99 and the weighted average remaining contractual life of those options is 4 3/4 years. At April 30, 2013 there are 750,000 options exercisable.

For the six months ended April 30, 2013, the amortization amounted to $35,852.

10

(9) FAIR VALUE OF FINANCIAL INSTRUMENTS

The Company’s financial instruments consist of cash, receivables, accounts payable and accrued expenses and advances from affiliate. The carrying amounts of cash, receivables and payables approximate 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 approximately $10.3 million. 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 3,250,000 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 $3.79 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 an additional $2.71 million on the Century Thrust Concession (see note 1). All such exploration costs are being expensed as incurred.

(14) OPTION AGREEMENT

Pursuant to the LIMO Deed, as amended, during 2011, the Company paid Option Fees of $405,000, along with associated costs of $20,000.

The Company had 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. On October 24, 2011, the Company executed a Deed of Variation of Call Option extending the exercise date of Option to April 24, 2012, for a consideration of $55,000 for each month extended. The Company did not exercise the option to purchase 20% of the Joint Venture on April 24, 2012 and accordingly $425,000 of prepaid option fees were expensed in 2012 (see note 1).

(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 noted herein.

11

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 results of operations 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. Commencing August 2009, the Company decided to focus on mineral exploration for gold and copper in the Lao Peoples Democratic Republic. The Company 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, 55,105 acre Century Concession in Laos.

The agreement appoints Aurum as the manager of the Century Thrust Joint Venture Agreement, which currently exists between Argonaut and two other parties, and gives the Company 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. In order to acquire this interest, Aurum may spend US$6.5 million on exploration within the five year period ending December 10, 2015.

On February 10, 2011, the Company entered into a Deed of Agreement with the shareholders of the Lao Inter Mining Options Ltd (“LIMO”) which granted 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, enabled Aurum to acquire, at its option, a 71% beneficial interest in the Century Concession. In August 2011, the Company made the last option payment of $135,000. The Company had 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. On October 24, 2011, the Company executed a Deed of Variation of Call Option, extending the exercise date of the Option to April 24, 2012, for consideration of $55,000 for each month extended. The Company did not exercise the option due to delays in acquiring assay results and the time required to adequately assess the program.

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 approximately $10.3 million which was funded primarily by the sale of equity securities and advances from affiliates.

12

RESULTS OF OPERATIONS

Three Months Ended April 30, 2013 vs. Three Months Ended April 30, 2012.

Costs and expenses decreased from $1,269,562 in the three months ended April 30, 2012 to $524,095 in the three months ended April 30, 2013. The decrease in costs and expenses is a net result of:

a)	an increase in legal, accounting and professional expense from $9,217 for the three months ended April 30, 2012 to $16,455 for the three months ended April 30, 2013, primarily due to an increase in audit and legal fees.
b)	an increase in administrative expenses from $67,663 in the three months ended April 30, 2012 to $69,853 in the three months ended April 30, 2013, is primarily as a result of an increase in the cost of insurance.
c)	a decrease in stock based compensation from $120,714 in the three months ended April 30, 2012 to $384 in the three months ended April 30, 2013. In December 2010 and May 2011, the Company issued options over shares of Common Stock to employees under the 2010 Equity Incentive Plan. The decrease is due to options being fully vested in prior periods.
d)	a decrease in exploration expenditure expense from $1,071,968 for the three months ended April 30, 2012 to $437,403 for the three months ended April 30, 2013. The primary reason for the decrease is due to $590,000 of option fees being fully expensed and written off as a result of the LIMO Deed expiry during the three months ended April 30, 2012. (See note 14 to the financial statements included in Item 1).  Other costs are exploration costs that include salaries for 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 in November 2011 on field work including drilling, assaying, camp costs and contractors.

As a result of the foregoing, the loss from operations decreased from $1,269,562 for the three months ended April 30, 2012 to $524,095 for the three months ended April 30, 2013.

The Company recorded a foreign currency exchange gain of $78,150 for the three months ended April 30, 2013 compared to a foreign currency exchange gain of $53,813 for the three months ended April 30, 2012, primarily due to revaluation of the advance from affiliate which is denominated in Australian dollars.

The Company recorded a decrease in interest income from $2 for the three months ended April 30, 2012 to nil for the three months ended April 30, 2013.

The net loss was $445,945 for the three months ended April 30, 2013 compared to a net loss of $1,215,747 for the three months ended April 30, 2012.

Six Months Ended April 30, 2013 vs. Six Months Ended April 30, 2012.

Costs and expenses decreased from $2,271,759 in the six months ended April 30, 2012 to $998,862 in the six months ended April 30, 2013. The increase in costs and expenses is a net result of:

a)	a decrease in legal, accounting and professional expense from $26,827 for the six months ended April 30, 2012 to $25,265 for the six months ended April 30, 2013, primarily as a result of a decrease in accounting fees and compliance costs.
b)	a decrease in administrative expenses from $192,689 in the six months ended April 30, 2012 to $136,860 in the six months ended April 30, 2013, primarily due to a decrease in overseas travel and accommodation costs from $52,173 to $nil.
c)	a decrease in stock based compensation from $401,919 in the six months ended April 30, 2012 to $76,538 in the six months ended April 30, 2013. In December 2010 and May 2011, the Company issued options over shares of Common Stock to employees under the 2010 Equity Incentive Plan. The decrease is due to options being fully vested in prior periods.

13

d) a decrease in exploration expenditure expense from $1,650,324 for the six months ended April 30, 2012 to $758,984 for the six months ended April 30, 2013. The primary reason for the decrease is due to the option fees of $755,000 being fully expensed and written off as a result of the LIMO Deed expiry (See note 14 to the financial statements included in Item 1) during the six months ended April 30, 2012.  In addition, a decrease in the exploration costs expensed of $136,338 from the period six months ended April 30, 2012 to April 30, 2013. 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 in November 2011 on field work including drilling, assaying, camp costs and contractors.

As a result of the foregoing, the loss from operations decreased from $2,271,759 for the six months ended April 30, 2012 to $998,862 for the six months ended April 30, 2013.

The Company recorded a foreign currency exchange gain of $23,249 for the six months ended April 30, 2013 compared to a foreign currency exchange gain of $68,060 for the six months ended April 30, 2012, primarily due to revaluation of the advance from affiliate which is denominated in Australian dollars.

The Company recorded a decrease in interest income from $3 for the six months ended April 30, 2012 to nil for the six months ended April 30, 2013.

The net loss was $975,613 for the six months ended April 30, 2013 compared to a net loss of $2,203,696 for the six months ended April 30, 2012.

Liquidity and Capital Resources

For the six months ended April 30, 2013, net cash used in operating activities was $875,129 consisting primarily of the net loss from operations of $975,613, which was offset by a non-cash cost charge relating to employee options issued for stock based compensation of $76,538. Net cash used in investing activities was $nil; and net cash provided by financing activities was $879,098 being advances from affiliates.

As of April 30, 2013 the Company has short term obligations of $190,070 comprising accounts payable and accruals.

The Company has $18,693 in cash at April 30, 2013.

The Company may fund up to $6.5 million in exploration expenditure, within the five year period ending December 10, 2015, of which $3.79 million has already been funded, in order to acquire a 51% beneficial interest in the Century Thrust Joint Venture (“Joint Venture”).

As of December 31, 2011, the Company had completed its initial drilling program on the Century Thrust Joint Venture tenements and is currently compiling assay results. Depending upon available capital resources, the Company may conduct additional exploration drilling programs during 2013 on the Joint Venture.

The Company’s ability to continue operations through 2013, including the ability to purchase any interest in the Joint Venture, is dependent upon future funding from affiliated entities, capital raisings, or its ability to commence revenue producing operations and positive cash flows, of which there can be no assurance.

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.

14

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, 2012,  

● 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 activities 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, 2012, 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.

15

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

At April 30, 2013, the Company had no outstanding loan facilities.

The Company reports in US$ and holds cash in Australian dollars. At April 30, 2013, this amounted to A$14,845. A change in the exchange rate between the A$ and the US$ will have an effect on the amounts reported in the Company’s 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$151 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.

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 2013 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 April 30, 2013, that our disclosure controls and procedures were effective in achieving that level of reasonable assurance.

16

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.	Mine Safety Disclosure.
	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 Joseph Isaac Gutnick
	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 Joseph Isaac Gutnick
	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 April 30, 2013 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.

17

(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 Gutnick
	Chairman of the Board, President and Chief Executive Officer
	(Principal Executive Officer)
By:	/s/ Craig Michael
	Craig Michael
	Director
By:	/s/ Simon Lee
	Simon Lee
	Chief Financial Officer
	(Principal Financial Officer)

Dated  June 12, 2013

18

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 Joseph Isaac Gutnick
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 Joseph Isaac Gutnick
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 April 30, 2013 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.

19

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO

SECURITIES EXCHANGE ACT RULE 13A-14(a)

I, Joseph Gutnick, 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:  June 12, 2013

/s/ Joseph I Gutnick
Name:	Joseph Gutnick
Title:	Chairman of the Board, President and Chief Executive Officer
	(Principal Executive Officer)

20

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:  June 12, 2013

/s/ Simon Lee
Name:	Simon Lee
Title:	Chief Financial Officer
	(Principal Financial Officer)

21

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 six months ended April 30, 2013 as filed with the Securities and Exchange Commission on the date hereof (the “report”), the undersigned, Joseph Gutnick, 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:    June 12, 2013

/s/ Joseph I Gutnick                                            

Joseph Gutnick

Chairman of the Board, President and Chief Executive Officer

(Principal Executive Officer)

22

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 six months ended April 30, 2013 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:    June 12, 2013

/s/ Simon Lee                                                            

Simon Lee

Chief Financial Officer

(Principal Financial Officer)

23

XML

EXPLORATION STAGE COMPANY

6 Months Ended

Apr. 30, 2013

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 approximately $10.3 million. The Company’s working capital has been primarily generated through the sales of common stock as well as advances from an affiliated entity.

XML

Statements of Operations (An Exploration Stage Company) (Unaudited) (USD $) Share data in Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended		55 Months Ended
	Apr. 30, 2013	Apr. 30, 2012	Apr. 30, 2013	Apr. 30, 2012	Apr. 30, 2013
Revenues
Costs and expenses:
Legal, accounting and professional	16,455	9,217	25,265	26,827	249,466
Administration expenses	69,853	67,663	136,860	192,689	903,360
Consultants salaries - stock based compensation	384	120,714	76,538	401,919	2,729,167
Exploration expenditure	437,403	1,071,968	758,984	1,650,324	6,195,898
Donations					100,000
Interest expense			1,215		1,229
Total costs and expenses	524,095	1,269,562	998,862	2,271,759	10,179,120
(Loss) from operations	(524,095)	(1,269,562)	(998,862)	(2,271,759)	(10,179,120)
Foreign currency exchange gain (loss)	78,150	53,813	23,249	68,060	(176,503)
Other income - interest		2		3	134
(Loss) before income taxes	(445,945)	(1,215,747)	(975,613)	(2,203,696)	(10,355,489)
Provision for income taxes
Net (loss)	$ (445,945)	$ (1,215,747)	$ (975,613)	$ (2,203,696)	$ (10,355,489)
Basic and diluted net (loss) per common equivalent shares	$ 0.00	$ (0.01)	$ (0.01)	$ (0.02)	$ (0.10)
Weighted average number of common equivalent shares (in 000's)	105,600	105,600	105,600	105,600	104,579

XML

PROPERTY AND EQUIPMENT

6 Months Ended

Apr. 30, 2013

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 April 30, 2013							At October 31, 2012
	Depreciable Life (in years)	Cost $		Accumulated Depreciation $			Net Book Value $		Cost $		Accumulated Depreciation $			Net Book Value $
Office Equipment	1-2		3,830		(3,830	)		-		3,830		(3,830	)		-
Computer Equipment	1-3		101,975		(89,924	)		12,051		101,975		(73,303	)		28,672
Furniture	1-2		650		(642	)		8		650		(481	)		169
			106,455		(94,396	)		12,059		106,455		(77,614	)		28,841

The depreciation expense for the six months ended April 30, 2013 amounted to $16,782 and for the six months ended April 30, 2012 amounted to $20,634.

XML

ISSUE OF OPTIONS UNDER EQUITY INCENTIVE PLAN (Tables)

6 Months Ended

Apr. 30, 2013

Options Granted December 13, 2010

Schedule of fair value assumptions used for stock options

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

Schedule of stock option activity

	Options		Option Price Per Share US$		Weighted Average Exercise Price US$
Outstanding at November 1, 2010		-		-		-
Granted		2,500,000		1.00		1.00
Outstanding at October 31, 2012 and April 30, 2013		2,500,000		1.00		1.00

Options Granted May 2011

Schedule of fair value assumptions used for stock options

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	2.02%	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

Schedule of stock option activity

	Options		Option Price Per Share US$		Weighted Average Exercise Price US$
Outstanding at November 1, 2010		-		-		-
Granted		750,000		1.00		1.00
Outstanding at October 31, 2012 and April 30, 2013		750,000		1.00		1.00

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NET LOSS PER SHARE

6 Months Ended

Apr. 30, 2013

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 3,250,000 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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Option agreement (Detail) (Century Thrust Joint Venture Agreement, Century Concession in Laos, USD $)	6 Months Ended	12 Months Ended
	Apr. 30, 2013	Oct. 31, 2012	Oct. 31, 2011
Century Thrust Joint Venture Agreement | Century Concession in Laos
Mineral Rights [Line Items]
Mining project, option fees paid, capitalized			$ 405,000
Costs associated with mining project, capitalized			20,000
Mining project, exercise price of option	1,350,000
Mining project, write-down of previously capitalized costs		$ 425,000

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Property and equipment - Narrative (Detail) (USD $)	6 Months Ended		55 Months Ended
	Apr. 30, 2013	Apr. 30, 2012	Apr. 30, 2013
Property, Plant and Equipment [Line Items]
Depreciation	$ 16,782	$ 20,634	$ 94,396

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Property and equipment (Detail) (USD $)									6 Months Ended
	Apr. 30, 2013	Oct. 31, 2012	Apr. 30, 2013 Office Equipment	Oct. 31, 2012 Office Equipment	Apr. 30, 2013 Computer Equipment	Oct. 31, 2012 Computer Equipment	Apr. 30, 2013 Furniture	Oct. 31, 2012 Furniture	Apr. 30, 2013 Minimum Office Equipment	Apr. 30, 2013 Minimum Computer Equipment	Apr. 30, 2013 Minimum Furniture	Apr. 30, 2013 Maximum Office Equipment	Apr. 30, 2013 Maximum Computer Equipment	Apr. 30, 2013 Maximum Furniture
Property, Plant and Equipment [Line Items]
Depreciable Life (in years)									1 year	1 year	1 year	2 years	3 years	2 years
Cost	$ 106,455	$ 106,455	$ 3,830	$ 3,830	$ 101,975	$ 101,975	$ 650	$ 650
Accumulated Depreciation	(94,396)	(77,614)	(3,830)	(3,830)	(89,924)	(73,303)	(642)	(481)
Net Book Value	$ 12,059	$ 28,841			$ 12,051	$ 28,672	$ 8	$ 169

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Issue of options under equity incentive plan - Schedule of stock option activity (Detail) (2010 Equity Incentive Plan, USD $)	24 Months Ended	30 Months Ended
	Oct. 31, 2012	Apr. 30, 2013	Oct. 31, 2010
Options Granted December 13, 2010
Number of options, outstanding at end of period	2,500,000	2,500,000	2,500,000
Weighted average exercise price, granted	$ 1	$ 1
Weighted average exercise price, outstanding end of period	$ 1	$ 1
Options Granted May 2011
Number of options, outstanding at end of period	750,000	750,000	750,000
Weighted average exercise price, granted	$ 1	$ 1
Weighted average exercise price, outstanding end of period	$ 1	$ 1

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Stockholders equity (Detail) (USD $)	55 Months Ended	1 Months Ended
	Apr. 30, 2013	Oct. 31, 2009 Common Stock	Mar. 31, 2009 Common Stock Public Offering	Sep. 30, 2008 Common Stock Founder Private Placement
Stockholders Equity Note [Line Items]
Shares issued			9,600,000	96,000,000
Proceeds from issuance of shares	$ 21,000		$ 12,000	$ 9,000
Stock split, number of shares issued for each share held		8
Stock split, distribution date		October 2009

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Organization and business (Detail) (USD $)	6 Months Ended
	Apr. 30, 2013 Century Concession in Laos Century Thrust Joint Venture Agreement	Apr. 24, 2012 Century Concession in Laos Century Thrust Joint Venture Agreement	Dec. 31, 2010 Century Concession in Laos Century Thrust Joint Venture Agreement	Apr. 30, 2013 Golden Target Pty Ltd, Principal Stockholder	Jul. 31, 2009 Golden Target Pty Ltd, Principal Stockholder
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Percentage of entity owned				96.21%
Percentage of the entity acquired from certain stockholders					96.00%
Aggregate percentage owned by unrelated entity			70.00%
Potential percentage of investee earnings attributable to Aurum if specified funding is provided by Aurum	72.86%
Potential ownership percentage if funding is provided by Aurum	51.00%
Exploration expense funding commitment, maximum amount	$ 6,500,000
Specified period to meet funding requirements	5 years
Expiration date of specified period to meet funding requirements	Dec. 10, 2015
Mining project option agreement date	Feb. 10, 2011
Additional ownership interest if Aurum had exercised an option to acquire shares held by an unrelated investor before the option expired		20.00%
Potential aggregate ownership interest if Aurum both provides specified funding amounts and exercises an option to acquire shares held by an unrelated investor	71.00%
Monthly required payment to preserve option rights		$ 55,000

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Statements of Stockholders' Equity (Deficit) (An Exploration Stage Company) (Unaudited) (Parenthetical)	6 Months Ended	12 Months Ended
	Apr. 30, 2013	Oct. 31, 2012	Oct. 31, 2011
Amortization under 2010 equity incentive plan, options	3,250,000	3,250,000	3,250,000

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ORGANIZATION AND BUSINESS

6 Months Ended

Apr. 30, 2013

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 April 30, 2013.

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 and CEO of the Company.

Commencing August 2009, the Company decided to focus on mineral exploration for gold and copper in the Lao Peoples Democratic Republic (Lao P.D.R or Laos). The Company is considered to be in the exploration stage.

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 gives the Company 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. In order to acquire this interest, Aurum may be required to spend US$6.5 million on exploration within the five year period ending December 10, 2015.

On February 10, 2011, the Company entered into a Deed of Agreement with the shareholders of the Lao Inter Mining Options Ltd (“LIMO”) which granted 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 enabled Aurum to acquire, at its option, a 71% beneficial interest in the Century Concession. On October 24, 2011, the Company executed a Deed of Variation of Call Option extending the exercise date of Option to April 24, 2012, for a consideration of $55,000 for each month extended (see note 14). In April 2012, the Company decided not to exercise the option to purchase 20% of the Joint Venture.

The Company’s ability to continue operations through the remainder of 2013 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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AFFILIATE TRANSACTION

6 Months Ended

Apr. 30, 2013

AFFILIATE TRANSACTION

(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 six months ended April 30, 2013, AXIS provided services in accordance with the services agreement, incurred direct costs on behalf of the Company and provided funding of $792,852. In addition, the Manager of the Laos operations advanced the Company $59,000. The amounts owed to affiliates as of April 30, 2013 and October 31, 2012 were $7,482,049 and $6,630,197 respectively and are reflected in non-current liabilities - advance from affiliates. Included in these amounts is $232,500 and $173,500 respectively being funds advanced by the Manager of the Laos operations. During the three and six months ended April 30, 2013 and 2012, the affiliates did not charge interest.

The Company intends to repay these amounts with funds raised either via additional debt or equity offerings. Both affiliates have 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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RECENT ACCOUNTING PRONOUNCEMENTS

6 Months Ended

Apr. 30, 2013

RECENT ACCOUNTING PRONOUNCEMENTS

(2) RECENT ACCOUNTING PRONOUNCEMENTS

The Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

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Affiliate transactions (Detail) (USD $)	3 Months Ended		6 Months Ended		55 Months Ended
	Apr. 30, 2013	Apr. 30, 2012	Apr. 30, 2013	Apr. 30, 2012	Apr. 30, 2013	Oct. 31, 2012
Related Party Transaction [Line Items]
Payable to affiliates	$ 7,482,049		$ 7,482,049		$ 7,482,049	$ 6,630,197
Borrowings from affiliates			879,098	1,457,143	7,294,449
Interest charged by affiliates	0	0	0	0
Axis Consultants Pty Ltd
Related Party Transaction [Line Items]
Borrowings from affiliates			792,852
Manager of Laos Operations
Related Party Transaction [Line Items]
Payable to affiliates	232,500		232,500		232,500	173,500
Borrowings from affiliates			$ 59,000

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Issue of options under equity incentive plan - Narrative (Detail) (USD $)	3 Months Ended		6 Months Ended		55 Months Ended	1 Months Ended	6 Months Ended	1 Months Ended	6 Months Ended
	Apr. 30, 2013	Apr. 30, 2012	Apr. 30, 2013	Apr. 30, 2012	Apr. 30, 2013	Dec. 31, 2010 Options Granted December 13, 2010 2010 Equity Incentive Plan	Apr. 30, 2013 Options Granted December 13, 2010 2010 Equity Incentive Plan	May 31, 2011 Options Granted May 2011 2010 Equity Incentive Plan	Apr. 30, 2013 Options Granted May 2011 2010 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted						2,500,000		750,000
Employee stock option vesting rights							1/3 on December 13, 2010, 1/3 vested on November 17, 2011 and the balance vested on November 17, 2012.		1/3 upon grant date, 1/3 vested on February 1, 2012 and the balance vested on February 1, 2013.
Stock options expiration date							Nov. 17, 2020		Feb. 01, 2018
Weighted average grant date fair value per option granted							$ 0.81		$ 0.99
Weighted average remaining contractual life							7 years 6 months		4 years 9 months
Options exercisable							2,500,000		750,000
Stock based compensation	$ 384	$ 120,714	$ 76,538	$ 401,919	$ 2,729,167		$ 40,686		$ 35,852

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Commitments (Detail) (Century Thrust Joint Venture Agreement, USD $) In Millions, unless otherwise specified	Apr. 30, 2013
Commitments Disclosure [Line Items]
Funding commitment, funded and expensed as incurred	$ 3.79
Century Concession in Laos
Commitments Disclosure [Line Items]
Funding commitment, unfunded amount	$ 2.71

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Balance Sheet (An Exploration Stage Company) (Parenthetical) (USD $)	Apr. 30, 2013	Oct. 31, 2012
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

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STOCKHOLDERS' EQUITY

6 Months Ended

Apr. 30, 2013

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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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. 30, 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	2,005,676		2,005,676
Net (loss)	(4,777,291)			(4,777,291)
Ending Balance at Oct. 31, 2011	(3,821,420)	10,560	2,016,716	(5,758,687)	(90,009)
Ending Balance (in shares) at Oct. 31, 2011		105,600,000
Amortization of 3,250,000 options under 2010 equity incentive plan	646,953		646,953
Net (loss)	(3,531,780)			(3,531,780)
Ending Balance at Oct. 31, 2012	(6,706,247)	10,560	2,663,669	(9,290,467)	(90,009)
Ending Balance (in shares) at Oct. 31, 2012		105,600,000
Amortization of 3,250,000 options under 2010 equity incentive plan	76,538		76,538
Net (loss)	(975,613)			(975,613)
Ending Balance at Apr. 30, 2013	$ (7,605,322)	$ 10,560	$ 2,740,207	$ (10,266,080)	$ (90,009)
Ending Balance (in shares) at Apr. 30, 2013		105,600,000

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Balance Sheet (An Exploration Stage Company) (USD $)	Apr. 30, 2013	Oct. 31, 2012
Current Assets:
Cash	$ 18,693	$ 18,721
Receivables	19,800	14,760
Prepayments	16,245	24,298
Total Current Assets	54,738	57,779
Non Current Assets:
Property and equipment (Note 3)	12,059	28,841
Total Non Current Assets	12,059	28,841
Total Assets	66,797	86,620
Current Liabilities:
Accounts payable and accrued expenses	190,070	162,670
Total Current Liabilities	190,070	162,670
Non Current Liabilities:
Advances from affiliates (Note 4)	7,482,049	6,630,197
Total Non Current Liabilities	7,482,049	6,630,197
Total Liabilities	7,672,119	6,792,867
Stockholders' Equity (Deficit) :
Common stock: $.0001 par value 500,000,000 shares authorised, and 105,600,000 shares issued and outstanding at April 30, 2013 and October 31, 2012	10,560	10,560
Additional Paid-in-Capital	2,740,207	2,663,669
Retained (Deficit) during exploration stage	(10,266,080)	(9,290,467)
Retained (Deficit) prior to exploration activities	(90,009)	(90,009)
Total Stockholders' Equity (Deficit)	(7,605,322)	(6,706,247)
Total Liabilities and Stockholders' Equity (Deficit)	$ 66,797	$ 86,620

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Going concern (Detail) (USD $) In Millions, unless otherwise specified	Apr. 30, 2013
Going Concern [Line Items]
Deficit from inception	$ 10.3

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PROPERTY AND EQUIPMENT (Tables)

6 Months Ended

Apr. 30, 2013

Schedule of property, plant and equipment

		At April 30, 2013							At October 31, 2012
	Depreciable Life (in years)	Cost $		Accumulated Depreciation $			Net Book Value $		Cost $		Accumulated Depreciation $			Net Book Value $
Office Equipment	1-2		3,830		(3,830	)		-		3,830		(3,830	)		-
Computer Equipment	1-3		101,975		(89,924	)		12,051		101,975		(73,303	)		28,672
Furniture	1-2		650		(642	)		8		650		(481	)		169
			106,455		(94,396	)		12,059		106,455		(77,614	)		28,841

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Exploration Stage Company (Detail) (USD $)	1 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended				55 Months Ended
	Oct. 31, 2008	Apr. 30, 2013	Apr. 30, 2012	Apr. 30, 2013	Apr. 30, 2012	Oct. 31, 2012	Oct. 31, 2011	Oct. 31, 2010	Oct. 31, 2009	Apr. 30, 2013
Operating loss since inception	$ (12)	$ (445,945)	$ (1,215,747)	$ (975,613)	$ (2,203,696)	$ (3,531,780)	$ (4,777,291)	$ (981,396)	$ (89,397)	$ (10,355,489)

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Net loss per share (Detail) (Stock Options)	6 Months Ended
	Apr. 30, 2013
Stock Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive stock options excluded from diluted weighted average shares outstanding	3,250,000

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INCOME TAXES

6 Months Ended

Apr. 30, 2013

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 de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. As of April 30, 2013, 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$1,405,000 which would expire in various years through 2032.

The Company’s tax returns for all years since 2009 remain open to examination by the respective tax authorities.  There are currently no tax examinations in progress.

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Income taxes (Detail) (U.S. Internal Revenue Service, USD $)	6 Months Ended
	Apr. 30, 2013
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	1,405,000
Maximum
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards, expiration year	2032

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FAIR VALUE OF FINANCIAL INSTRUMENT

6 Months Ended

Apr. 30, 2013

FAIR VALUE OF FINANCIAL INSTRUMENT

(9) FAIR VALUE OF FINANCIAL INSTRUMENTS

The Company’s financial instruments consist of cash, receivables, accounts payable and accrued expenses and advances from affiliate. The carrying amounts of cash, receivables and payables approximate 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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GOING CONCERN

6 Months Ended

Apr. 30, 2013

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 April 30, 2013 amounted to approximately $10.3 million.

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Statements of Cash Flows (An Exploration Stage Company) (Unaudited) (USD $)	6 Months Ended		55 Months Ended
	Apr. 30, 2013	Apr. 30, 2012	Apr. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss)	$ (975,613)	$ (2,203,696)	$ (10,355,489)
Adjustments to reconcile net (loss) to net cash (used) in operating activities:
Employee options issued for stock based compensation	76,538	401,919	2,729,167
Foreign currency exchange (gain) loss	(23,249)	(68,060)	174,487
Depreciation	16,782	20,634	94,396
Net change in:
Prepayments	8,053	447,408	(16,245)
Receivables	(5,040)	(4,154)	(19,800)
Accounts payable and accrued expenses	27,400	(47,203)	190,070
Net Cash (Used) in Operating Activities	(875,129)	(1,453,152)	(7,203,414)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment			(106,455)
Net Cash (Used) in Investing Activities			(106,455)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of stock			21,000
Borrowings from affiliate	879,098	1,457,143	7,294,449
Net Cash Provided by Financing Activities	879,098	1,457,143	7,315,449
Effect of exchange rate on cash	(3,997)	(3,816)	13,113
Net increase/(decrease) in cash	(28)	175	18,693
Cash at beginning of period	18,721	10,133
Cash at end of period	18,693	10,308	18,693
Supplemental Disclosures
Interest Paid			$ 14

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Issue of options under equity incentive plan - Fair value inputs (Detail) (2010 Equity Incentive Plan, USD $)	6 Months Ended
	Apr. 30, 2013	May 01, 2011
Options Vested on December 13, 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant date	Dec. 13, 2010
Grant date share price	$ 1.1
Expected life in years	4 years 6 months
Risk-free rate	1.91%
Volatility	95.00%
Exercise price	$ 1
Call option value	$ 0.78
Options Vested on November 17, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant date	Dec. 13, 2010
Grant date share price	$ 1.1
Expected life in years	5 years
Risk-free rate	1.91%
Volatility	95.00%
Exercise price	$ 1
Call option value	$ 0.81
Options Vesting on November 17, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant date	Dec. 13, 2010
Grant date share price	$ 1.1
Expected life in years	5 years 6 months
Risk-free rate	1.91%
Volatility	95.00%
Exercise price	$ 1
Call option value	$ 0.83
Options Vested on May 1, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant date	May 01, 2011
Grant date share price		$ 1.3
Expected life in years	3 years 6 months
Risk-free rate	2.02%
Volatility	100.00%
Exercise price	$ 1
Call option value	$ 0.91
Options Vested on February 1, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant date	May 01, 2011
Grant date share price		$ 1.3
Expected life in years	4 years
Risk-free rate	2.02%
Volatility	100.00%
Exercise price	$ 1
Call option value	$ 0.95
Options Vesting on February 1, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant date	May 01, 2011
Grant date share price		$ 1.3
Expected life in years	4 years 6 months
Risk-free rate	2.02%
Volatility	100.00%
Exercise price	$ 1
Call option value	$ 0.99

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CASH

6 Months Ended

Apr. 30, 2013

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

6 Months Ended

Apr. 30, 2013

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 vested on November 17, 2011 and the balance vested 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
Outstanding at October 31, 2012 and April 30, 2013		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 2013 was US$0.81 and the weighted average remaining contractual life of those options is 7½ years. At April 30, 2013 there are 2,500,000 options exercisable.

For the six months ended April 30, 2013, the amortization amounted to $40,686.

(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 vested on February 1, 2012 and the balance vested 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	2.02%	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
Outstanding at October 31, 2012 and April 30, 2013		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 2013 was US$0.99 and the weighted average remaining contractual life of those options is 4¾ years. At April 30, 2013 there are 750,000 options exercisable.

For the six months ended April 30, 2013, the amortization amounted to $35,852.

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SUBSEQUENT EVENTS

6 Months Ended

Apr. 30, 2013

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 noted herein.

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COMMITMENT

6 Months Ended

Apr. 30, 2013

COMMITMENT

(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 $3.79 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 an additional $2.71 million on the Century Thrust Concession (see note 1). All such exploration costs are being expensed as incurred.

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Document and Entity Information	6 Months Ended
	Apr. 30, 2013	Jun. 12, 2013
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Apr. 30, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q2
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

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OPTION AGREEMENT

6 Months Ended

Apr. 30, 2013

OPTION AGREEMENT

(14) OPTION AGREEMENT

Pursuant to the LIMO Deed, as amended, during 2011, the Company paid Option Fees of $405,000, along with associated costs of $20,000.

The Company had 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. On October 24, 2011, the Company executed a Deed of Variation of Call Option extending the exercise date of Option to April 24, 2012, for a consideration of $55,000 for each month extended. The Company did not exercise the option to purchase 20% of the Joint Venture on April 24, 2012 and accordingly $425,000 of prepaid option fees were expensed in 2012 (see note 1).