Note 16. Subsequent Events

4 Months Ended

May 31, 2012

Notes

Note 16. Subsequent Events

Note 16.  SUBSEQUENT EVENTS

During April 2012, the Company contracted to acquire two mining claims which had not closed as of May 31, 2012..  To secure these transactions, the Company escrowed the following amounts:

            1.  $29,000

            2.  2,250,000 shares of Company common stock with a value of $555,000

                 3.  250,000 warrants exercisable for two years at $.25 to purchase 250,000 shares of Company common stock, worth $35,000

            4.  A $100,000 three year note payable.

 One of the transactions closed on June 3, 2012, involving the purchase of a 704.3 acre parcel for $1,000 in cash, a $100,000 note payable and 2,000,000 shares of Company common stock worth $500,000.  The remaining $55,000 of stock, the $35,000 of warrants and $28,000 in cash will be released from escrow pending delivery of a clear chain of title by the sellers.

Subsequent to the closing of escrow, the Company began payment on the note issued as partial consideration for the purchase of the Golden Eagle #2 claim.

In addition, the Company acquired the Northstar claim in Elko, Nevada, for 50,000 shares of Company stock on August 2, 2012.

In January, 2013 and March 2013, the Company signed leases in Baja, California for various mining claims.  One lease, for three years is at monthly cost of $300.  The other lease, for four years, is at monthly cost of $200. 

2013	5,100
2014	6,000
2015	6,000
2016	2,700
2017	600

In April, 2013, the Company received the scheduled $50,000 payment on Property Option Agreement with Patriot Gold.