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CAPITAL STOCK&lt;/b&gt;&lt;/p&gt; &lt;p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'&gt;&amp;nbsp;&lt;/p&gt; &lt;p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'&gt;The following is a summary of stock activity during the quarter:&lt;/p&gt; &lt;p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'&gt;&amp;nbsp;&lt;/p&gt; &lt;p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'&gt;&amp;nbsp;&lt;/p&gt; &lt;table border="0" cellspacing="0" cellpadding="0" style='border-collapse:collapse'&gt; &lt;tr align="left"&gt; &lt;td width="222" valign="bottom" style='width:166.85pt;padding:0in 5.75pt 0in 5.75pt'&gt; &lt;p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;line-height:normal'&gt;&amp;nbsp;&lt;/p&gt; &lt;/td&gt; &lt;td width="87" valign="bottom" style='width:65.25pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.75pt 0in 5.75pt'&gt; &lt;p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'&gt;# OF SHARES&lt;/p&gt; &lt;/td&gt; &lt;td width="24" valign="top" style='width:.25in;padding:0in 5.75pt 0in 5.75pt'&gt; &lt;p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'&gt;&amp;nbsp;&lt;/p&gt; &lt;/td&gt; &lt;td width="109" valign="bottom" style='width:81.95pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.75pt 0in 5.75pt'&gt; &lt;p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'&gt;TOTAL STOCK AND PAID IN CAPITAL&lt;/p&gt; &lt;/td&gt; &lt;/tr&gt; &lt;tr align="left"&gt; &lt;td width="222" valign="bottom" style='width:166.85pt;padding:0in 5.75pt 0in 5.75pt'&gt; &lt;p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'&gt;Balances, 8/31/12&lt;/p&gt; &lt;/td&gt; &lt;td width="87" valign="bottom" style='width:65.25pt;border:none;padding:0in 5.75pt 0in 5.75pt'&gt; &lt;p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'&gt;194,760,044&lt;/p&gt; &lt;/td&gt; &lt;td width="24" valign="top" style='width:.25in;padding:0in 5.75pt 0in 5.75pt'&gt; &lt;p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'&gt;&amp;nbsp;&lt;/p&gt; &lt;/td&gt; &lt;td width="109" valign="bottom" style='width:81.95pt;border:none;padding:0in 5.75pt 0in 5.75pt'&gt; &lt;p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'&gt;4,675,220&lt;/p&gt; &lt;/td&gt; &lt;/tr&gt; &lt;tr align="left"&gt; &lt;td width="222" valign="bottom" style='width:166.85pt;padding:0in 5.75pt 0in 5.75pt'&gt; &lt;p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'&gt;Shares sold for cash&lt;/p&gt; &lt;/td&gt; &lt;td width="87" valign="bottom" style='width:65.25pt;padding:0in 5.75pt 0in 5.75pt'&gt; &lt;p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'&gt;1,210,000&lt;/p&gt; &lt;/td&gt; &lt;td width="24" valign="top" style='width:.25in;padding:0in 5.75pt 0in 5.75pt'&gt; &lt;p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'&gt;&amp;nbsp;&lt;/p&gt; &lt;/td&gt; &lt;td width="109" valign="bottom" style='width:81.95pt;padding:0in 5.75pt 0in 5.75pt'&gt; &lt;p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'&gt;151,250&lt;/p&gt; &lt;/td&gt; &lt;/tr&gt; &lt;tr align="left"&gt; &lt;td width="222" valign="bottom" style='width:166.85pt;padding:0in 5.75pt 0in 5.75pt'&gt; &lt;p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'&gt;Shares for mining claim not acquired&lt;/p&gt; &lt;/td&gt; &lt;td width="87" valign="bottom" style='width:65.25pt;padding:0in 5.75pt 0in 5.75pt'&gt; &lt;p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'&gt;1,000,000&lt;/p&gt; &lt;/td&gt; &lt;td width="24" valign="top" style='width:.25in;padding:0in 5.75pt 0in 5.75pt'&gt; &lt;p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'&gt;&amp;nbsp;&lt;/p&gt; &lt;/td&gt; &lt;td width="109" valign="bottom" style='width:81.95pt;padding:0in 5.75pt 0in 5.75pt'&gt; &lt;p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'&gt;300,000&lt;/p&gt; &lt;/td&gt; &lt;/tr&gt; &lt;tr style='height:4.5pt'&gt; &lt;td width="222" valign="bottom" style='width:166.85pt;padding:0in 5.75pt 0in 5.75pt;height:4.5pt'&gt; &lt;p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'&gt;Other shares for services&lt;/p&gt; &lt;/td&gt; &lt;td width="87" valign="bottom" style='width:65.25pt;padding:0in 5.75pt 0in 5.75pt;height:4.5pt'&gt; &lt;p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'&gt;1,500,000&lt;/p&gt; &lt;/td&gt; &lt;td width="24" valign="top" style='width:.25in;padding:0in 5.75pt 0in 5.75pt;height:4.5pt'&gt; &lt;p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'&gt;&amp;nbsp;&lt;/p&gt; &lt;/td&gt; &lt;td width="109" valign="bottom" style='width:81.95pt;padding:0in 5.75pt 0in 5.75pt;height:4.5pt'&gt; &lt;p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'&gt;445,000&lt;/p&gt; &lt;/td&gt; &lt;/tr&gt; &lt;tr align="left"&gt; &lt;td width="222" valign="bottom" style='width:166.85pt;padding:0in 5.75pt 0in 5.75pt'&gt; &lt;p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'&gt;Options issued to directors&lt;/p&gt; &lt;/td&gt; &lt;td width="87" valign="bottom" style='width:65.25pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.75pt 0in 5.75pt'&gt; &lt;p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'&gt;-&lt;/p&gt; &lt;/td&gt; &lt;td width="24" valign="top" style='width:.25in;padding:0in 5.75pt 0in 5.75pt'&gt; &lt;p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'&gt;&amp;nbsp;&lt;/p&gt; &lt;/td&gt; &lt;td width="109" valign="bottom" style='width:81.95pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.75pt 0in 5.75pt'&gt; &lt;p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'&gt;495,000&lt;/p&gt; &lt;/td&gt; &lt;/tr&gt; &lt;tr align="left"&gt; &lt;td width="222" valign="bottom" style='width:166.85pt;padding:0in 5.75pt 0in 5.75pt'&gt; &lt;p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'&gt;Balance, 11/30/12&lt;/p&gt; &lt;/td&gt; &lt;td width="87" valign="bottom" style='width:65.25pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.75pt 0in 5.75pt'&gt; &lt;p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'&gt;198,470,044&lt;/p&gt; &lt;/td&gt; &lt;td width="24" valign="top" style='width:.25in;padding:0in 5.75pt 0in 5.75pt'&gt; 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