Note 7 — Accounts Payable and Accrued Liabilities

Development costs associated with the Holbrook Project in the amount of $1.5 million and $2.1 million are included in accounts payable at June 30, 2013 and March 31, 2013, respectively.

Accrued liabilities at June 30, 2013 and March 31, 2013 included:

	June 30, 2013 (thousands)		March 31, 2013 (thousands)
	(unaudited)
Drilling/permitting	$	72	$	140
Mineral lease obligations	—		1,500
Legal	120		112
Board of Directors’ fees	—		125
Sichuan success fee	1,588		1,588
Interest on promissory notes	76		7,229
Compensation and other	1,269		1,064
Total accrued liabilities	$	3,125	$	11,758

Drilling and permitting costs are included in mineral properties as they relate to development costs associated with the Holbrook Project. The Sichuan success fee is the remainder of a one-time success fee due to a third-party consulting group. This $1.6 million is also capitalized and included in deferred fees. The interest on promissory notes at March 31, 2013, the entire balance of which related to the interest owing under the Karlsson and Apollo notes, is included in other long-term liabilities at June 30, 2013. This change in classification from current liability to non-current liability was due to the restructuring of these notes during the current quarter.